He says the decision to close the club’s doors came after his insurance agent told him the industry was moving away from covering strip clubs because they are considered a so-called ” dirty business”.
He says the insurance quote given to him by another company was simply too expensive and there is too much uncertainty about future coverage to stay in business.
“If we were to continue operating, I would really like to do a renovation (of the club). But how can I do a $100,000 renovation and not know if the insurance company we went with is going to drop the strip clubs next year because that seems to be the trend,” Czember said. CAT News.
However, the Insurance Bureau of Canada says it is not aware of any industry decision to move away from adult entertainment insurance.
The IBC said clubs and bars face liquor liability issues, such as outlets liable for drunk customers, but they say insurance companies continue to cover businesses for adults.
“There are over 100 insurance companies that provide coverage across the country and it’s just a matter of making sure you’re reaching out to the right people and shopping around,” said Rob Dupuis of the Bureau of insurance.
Czember says he and his co-owners could sell the property, but if not, they plan to renovate the building to accommodate more apartments. Renovations could begin in March.