South Carolina Lawmakers Push for Liquor Liability Reform

News Summary

In response to soaring insurance costs threatening local bars and restaurants, South Carolina lawmakers, led by Sen. Ed Sutton, advocate for reforms to liquor liability laws. With insurance premiums doubling, many business owners face tough decisions about renewing their insurance as closures loom. The proposed legislation aims to balance fair compensation for victims while ensuring manageable rates for small businesses. As urgent discussions unfold ahead of the May deadline, the future of Charleston’s small business landscape remains uncertain amid rising challenges.

South Carolina lawmakers are pushing for reforms to the state’s liquor liability laws as soaring insurance costs force many local bars and restaurants to close. With insurance premiums doubling for the 2024 renewal period, business owners are presenting a desperate situation that may threaten the future of small establishments across the state.

Newly elected State Sen. Ed Sutton is at the forefront of this legislative effort, advocating for a bill that seeks to amend how liquor liability is determined. This move comes after the 2017 law, which mandated that businesses serving alcohol after 5 p.m. carry a minimum insurance policy of $1 million, significantly burdened small business owners. Many insurance companies have exited South Carolina, while others have raised their rates, exacerbating the problem.

The Brew Cellar, a beloved local business, recently announced its closure just two days after its 11th anniversary, citing the unsustainable rise in insurance costs as the primary reason. Business owners across the state, such as Zach Dennis, report grappling with the difficult decision of whether to renew their insurance or to shutter their doors permanently. The sentiment among many in the industry is that without reform, only larger chain establishments will survive.

Sen. Sutton emphasizes the need to balance fair compensation for victims of liquor-related incidents with manageable insurance rates for small businesses. While lawmakers are considering these changes, victim advocates have voiced their opposition, concerned that amendments might diminish protections for individuals harmed in alcohol-related accidents. Nevertheless, for many business owners, survival hinges on corrective measures being implemented swiftly.

Lawmakers aim to have the proposed reforms ready for the governor’s desk by May. However, with looming deadlines, some business owners fear it may already be too late for them. Notably, Carolina Western Pub has announced it may close effective May 17, 2025, if no legislative actions are taken to address the skyrocketing costs associated with liquor liability insurance.

The South Carolina Restaurant & Lodging Association has reported that many businesses in the Midlands are struggling under the current insurance pressures. The mounting challenges have prompted innovative responses from enterprising owners who are pivoting their business models in order to cope with expenses. For instance, Kimberly Gagliardi of Random Tap is transitioning her establishment to focus on breakfast offerings, which has reportedly led to an 80% reduction in her insurance costs.

This ongoing dialogue surrounding liquor liability reform has also included recommendations to impose stronger DUI laws as a proactive measure to reduce the number of incidents and, correspondingly, the insurance costs associated with such events. However, how feasible these solutions are remains to be seen.

As discussions unfold and legislative efforts are made, both state legislators and business owners are recognizing that the current insurance landscape poses a significant threat to Charleston’s rich culinary and small business community. Whether these reforms will arrive in time to save struggling establishments remains uncertain, but the urgency of the situation cannot be understated. Without reform, the vibrant local business scene could face drastic changes, leaving residents to question what the future holds for their favorite dining and drinking spots.

Deeper Dive: News & Info About This Topic

• ABC News 4
• Wikipedia: Liquor Liability
• Charleston City Paper
• Google Search: liquor liability law South Carolina
• Cola Daily
• Google Scholar: South Carolina liquor liability
• WRDW
• Encyclopedia Britannica: Liquor Liability
• Post and Courier
• Google News: liquor liability insurance South Carolina