South Carolina Lawmakers Propose Changes to Liquor Liability Laws

News Summary

As soaring insurance rates threaten the survival of local bars and restaurants in South Carolina, state lawmakers are advocating for changes to liquor liability laws. Currently, many establishments face financial strain due to skyrocketing insurance premiums, with some reporting increases of up to 1,000%. Senator Ed Sutton is leading efforts to amend existing laws, proposing a more balanced approach that ensures victim compensation while easing the burden on small business owners. Support for the legislative changes is growing among local stakeholders, though challenges remain from victim advocacy groups prioritizing public safety.

South Carolina state lawmakers are currently advocating for significant changes to liquor liability laws as soaring insurance rates pose a serious threat to local bars and restaurants. The newly proposed legislation aims to alleviate the financial burdens that small business owners have been experiencing, particularly in light of substantial increases in insurance premiums for liquor liability coverage.

In recent months, many local establishments have reported a sharp rise in insurance premiums, often doubling in cost for 2024 renewals. This spike has forced some bars and restaurants to close their doors entirely. Notably, The Brew Cellar announced it would close two days after its 11th anniversary due to the financial strain imposed by the current liquor liability law.

Newly elected State Senator Ed Sutton has taken the lead in proposing a bill that seeks to amend existing liquor liability laws, particularly concerning how liability is determined for establishments serving alcohol. The public sentiment among local business owners indicates that the 2017 law, which mandates that bars and restaurants serving alcohol after 5 p.m. maintain a minimum insurance policy of $1 million, has become increasingly burdensome for small businesses.

The situation has been compounded by the departure of several insurance companies from the state following the 2017 implementation of this law. Their exit has resulted in reduced competition, leading to higher rates for liquor liability insurance coverage and limiting the options available for local business owners trying to secure affordable policies.

Senator Sutton’s proposed changes aim to create a more balanced approach, ensuring victim compensation while also making it feasible for small business owners to remain operational. He has indicated a goal of presenting this proposal to the governor by May, although concerns linger that any solutions may come too late for some establishments that are already struggling to stay afloat.

Amid these discussions, current victim advocacy groups have voiced opposition to potential changes, insisting that maintaining existing protections is essential for public safety. In contrast, small business owners argue that reform is critical for their survival within a rapidly changing economic landscape. Lawmakers believe that failure to address these issues could result in a shift towards larger chain restaurants replacing local businesses unable to cope with the high costs of insurance, which could adversely impact Charleston’s vibrant culinary scene.

The ongoing legislative efforts have garnered support from various stakeholders, including Charleston’s Mayor William Cogswell, who fully backs efforts aimed at providing relief to struggling small businesses in the hospitality sector. As local establishments contribute significantly to the economy—generating approximately $13 billion annually—lawmakers recognize that a robust hospitality industry is crucial for South Carolina’s economic vitality.

Under the evolving proposals, liability laws would change to decrease the financial responsibility on bars and restaurants for incidents of drunk driving. The new agreement would establish that if an establishment is found partly responsible for such an incident, it would only pay damages proportional to its fault rather than being liable for the entire amount. This shift aims to reduce the overwhelming burden currently carried by small businesses.

Currently, some restaurant owners have reported massive increases in insurance premiums, with some facing hikes of 100% to 1,000%. The proposed legislation also includes mandates for more stringent training for servers, particularly in establishments that remain open after midnight. These training requirements are intended to help reduce incidents related to over-serving alcohol while enhancing patron safety.

As the push for liquor liability reform continues, lawmakers and business owners are closely monitoring changes, recognizing the ongoing need for further discussions about tort reform that could benefit various industries across South Carolina. While insurance companies are now required to report to the state Department of Insurance, they are not obligated to offer liability insurance policies. The anticipated reform may encourage increased competition among insurers and potentially lead to lower rates in the long term.

Deeper Dive: News & Info About This Topic

• Charleston Business: SC Liquor Liability Insurance Reform 2024
• Post and Courier: Liquor Liability in South Carolina Restaurants and Bars
• Insurance Business: South Carolina Senate Passes Liquor Liability Reform Bill
• Wikipedia: Liquor Law
• Google Search: South Carolina liquor liability