South Carolina Lawmakers Propose Changes to Liquor Liability Laws

News Summary

In response to soaring liquor liability insurance costs, South Carolina lawmakers are moving to amend existing laws that impact local bars and restaurants. The rising premiums, some doubling or tripling, have put immense financial stress on establishments, leading to closures such as The Brew Cellar. Newly elected State Senator Ed Sutton sponsors legislation aimed at providing relief, while balancing the need for victim compensation. With bipartisan support for reform, business owners stress the urgency for legislative action to save their struggling operations and the state’s vibrant culinary scene.

South Carolina lawmakers are moving to amend liquor liability laws to alleviate the financial challenges faced by local bars and restaurants. This initiative comes as many establishments struggle with soaring insurance costs that have forced some to shut down operations.

The rising costs have prompted bar owners to report that their liquor liability premiums have doubled or even tripled for their policy renewals in 2024. Newly elected State Senator Ed Sutton is sponsoring legislation aimed at changing the existing framework for liability under the current liquor liability laws. This change is hoped to provide necessary relief for small business owners grappling with unprecedented insurance expenses.

In 2017, South Carolina implemented a law requiring businesses serving alcohol after 5:00 p.m. to maintain a minimum insurance policy of $1 million. While this law was designed to justify compensation for victims of alcohol-related incidents, its unintended consequences have included several insurance companies exiting the state, leading remaining providers to significantly increase their rates. Such market shifts have severely impacted the ability of bar owners to afford necessary coverage.

Local business The Brew Cellar announced its closure just two days after celebrating its 11th anniversary due to the overwhelming financial burden of liquor liability insurance. Other bar owners, like Zach Dennis, report facing a similar crossroad, where renewing their insurance policy or shutting down has become a pressing dilemma.

Despite many bar owners operating responsibly, they are still confronted by the high costs of liquor liability insurance, hindering their ability to open new locations. As State Senator Sutton advocates for legislative reform, he stresses the need to find a balanced approach that permits small businesses to thrive while still providing victims with rightful compensation for their injuries.

However, victim advocates have voiced concerns regarding the proposed changes to liquor liability laws. They worry that altering these provisions could compromise the ability of victims to seek compensation in the future. Meanwhile, current and prospective business owners are asserting that changes to the legislation are critical for their survival amid the alarming rise in insurance premiums.

Sutton aims to have this relief legislation on the governor’s desk by May, but concerns linger over whether this timeline will be sufficient to save businesses already struggling or closing down. Without intervention, there are fears that the vibrant culinary scene in Charleston, recognized for its diverse and unique local establishments, could diminish significantly.

The hospitality industry in Charleston plays a vital role in local tourism, contributing approximately $13 billion annually to the regional economy. Business owners emphasize the importance of sustaining a diverse restaurant and bar landscape in South Carolina, reflecting both cultural and economic significance.

Lawmakers recognize the urgency of addressing these issues, especially given the continuing trend of business closures linked to high insurance costs. There is growing bipartisan support among lawmakers for taking action to reform the liquor liability laws, while organizations like the South Carolina Bar and Tavern Association echo the call for reform, noting that the current liabilities disproportionately penalize small businesses.

Some business owners have reported astonishing insurance rate increases that range from 100% to 1,000%, depending on various individual circumstances. In response to these drastic changes, the Responsible Hospitality Reform Alliance has emerged to advocate for legislative changes and heightened protections for hospitality businesses during this challenging period.

Deeper Dive: News & Info About This Topic

• Charleston Business: SC Liquor Liability Insurance Reform 2024
• Wikipedia: Liability Insurance
• ABC News 4: Business Forced to Close Due to South Carolina Liquor Liability Law
• Google Search: South Carolina liquor liability law
• Charleston City Paper: Liquor Liability Crisis Divides Lawmakers
• Encyclopedia Britannica: Liquor Law
• Post and Courier: Liquor Liability Insurance Legislation
• Count on 2: Rising Liquor Liability Rates Hurting Businesses