News Summary
A newly passed liquor liability reform bill in South Carolina aims to ease the burden of rising insurance premiums on bars and restaurants. The legislation, now awaiting Governor Henry McMaster’s approval, modifies liability laws to provide financial protections for establishments facing steep insurance costs. Key changes include limiting liability for drunk driving cases and reducing coverage requirements for venues with lower alcohol sales. While the bill has garnered support from local leaders and industry advocates, some critics express concerns about its effectiveness and insurance market competition.
Columbia, South Carolina – Liquor Liability Reform Bill Heads to Governor
South Carolina bar and restaurant owners are likely to see relief from soaring liquor liability insurance premiums thanks to a newly passed reform bill. As of May 6, 2025, the bill has successfully navigated through the legislative process and is on its way to Governor Henry McMaster for approval.
Recent data showed that some establishments experienced staggering increases in liquor liability costs, with rates climbing by as much as 1,000%. The new legislation aims to amend the state’s joint and several liability laws, providing financial safety for businesses facing exorbitant insurance rates.
Key Provisions of the Liquor Liability Reform
Under the new agreement, several important changes are set to take effect:
- Liability Limitations: Bars and restaurants will only be responsible for up to 50% of a plaintiff’s actual damages in cases of drunk driving.
- Partial Responsibility: Establishments that are only partially responsible for an incident will no longer be liable for the entire verdict.
- Insurance Coverage Mandates: Venues where alcohol accounts for less than 40% of total sales will see reduced insurance coverage requirements.
- Technology Compliance: Bars and restaurants open after midnight must implement state-of-the-art fake ID detection systems.
- Server Accountability: Bartenders or servers who knowingly overserve intoxicated patrons will be held liable.
Support and Opposition
The liquor liability reform was championed by the Responsible Hospitality Reform Alliance and has been praised by local leaders, including Charleston Mayor William Cogswell, who view it as a vital boost for the state’s multi-billion dollar tourism industry. These reforms come in response to significant increases in liability insurance costs and violent incidents, notably the tragic events at Folly Beach in 2023, which highlighted the urgent need for reform.
However, critics remain skeptical about the effectiveness of the legislation. Concerns have been raised by some of the industry representatives, including Asheton Reid of SC Venue Crisis, who argue that the bill fails to address fundamental issues within liquor liability. A prominent concern is the lack of a mandate for insurance companies to issue liquor liability policies, which raises questions about competition in a market that has rapidly contracted. Just two carriers are currently operating in South Carolina, down from 47 eight years ago.
Addressing Industry Challenges
The passage of this bill comes as the House has indicated a willingness to discuss a broader tort reform bill in the 2026 legislative session, targeting issues beyond the alcohol-serving sector. Supporters of the liquor liability reform express hope that these changes will alleviate operational costs for bars and restaurants across the state.
Amid dwindling competition among insurance providers, business owners have struggled to secure affordable liability policies. Jonathan Kish, CEO of Queen Street Hospitality Management, emphasized that new laws could potentially compel insurers to expand offerings in the liability market, fostering increased competition and lower costs.
Conclusion
The liquor liability reform bill represents a significant shift in South Carolina’s approach to addressing rising insurance costs for bars and restaurants. With the bill now awaiting the governor’s signature, stakeholders are optimistic about the potential positive impact on the state’s hospitality sector and the wider economy.
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HERE Resources
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Additional Resources
- Charleston Business: SC Liquor Liability Insurance Reform
- Post and Courier: Liquor Liability in SC Restaurants and Bars
- Count on 2: SC Lawmakers Reach Compromise on Liquor Liability Reform
- Wikipedia: Liquor Liability
- Encyclopedia Britannica: Alcohol Legal Restrictions
