June 20, 2025

South Carolina Lawmakers Push for Liquor Liability Reform

News Summary

South Carolina lawmakers are working on reforms to liquor liability laws to address skyrocketing insurance costs impacting local businesses. The proposed measures, led by State Senator Ed Sutton, aim to support struggling bars and restaurants facing closure due to increased premiums. Amid calls for change, a bipartisan agreement seeks to retain essential coverage while offering ways to lower costs. New training requirements for servers and adjustments to liability assessment in lawsuits are also proposed to alleviate financial burdens. Legislative changes could significantly affect local economies and small businesses.

South Carolina lawmakers are actively pursuing amendments to liquor liability laws due to rapidly escalating insurance costs that are severely impacting local businesses. The proposed changes are a response to the overwhelming financial strain placed on restaurants and bars, many of which have been forced to shut down as insurance premiums have surged, in some cases, doubling in price.

Newly elected State Senator Ed Sutton is championing a bill aimed at reforming shop liability laws and altering the way liability is assessed for establishments serving alcohol. This legislative action comes in light of a troubling trend where several local bars and restaurants have announced closures, attributing the drastic measure to skyrocketing costs associated with liquor liability insurance.

In 2017, South Carolina enacted legislation that mandated all businesses serving alcohol after 5 PM to maintain a minimum liquor liability insurance policy of $1 million. Originally intended to ensure victim protection in alcohol-related incidents, this law quickly became a significant financial burden for small businesses. The increasing premiums have driven some insurance companies out of the market, leaving business owners with fewer options and higher costs.

Many bar owners are now faced with a difficult choice: continue paying exorbitant insurance rates or close their doors for good. This challenging scenario has ignited a call for change from both lawmakers and business owners. Sutton underlines the necessity of maintaining a balance between compensating victims of overserving and preserving the viability of small businesses struggling to manage high insurance expenses.

Despite the pressing need for reform, advocates for victims of alcohol-related incidents express opposition to amendments to the existing law. However, many current and prospective business owners argue that these changes are essential for their survival in a heavily regulated and financially taxing environment.

A notable example includes The Brew Cellar, a local business that announced it would be closing on February 17, just two days following its 11th anniversary, primarily due to the prohibitive insurance costs stemming from the liquor liability law.

Failure to adjust the liquor liability law might result in a marketplace dominated by large-chain establishments, as highlighted by both Senator Sutton and a local business owner. They articulate that such a shift could have detrimental effects on the local economy, particularly in terms of competition against small businesses who are already struggling to stay afloat.

The senator has indicated that he aims to push this bill through the legislative process and onto the governor’s desk by May. However, business owners warn that this timeline may prove too late for some establishments already in distress.

In response to the growing concern, a bipartisan agreement has emerged within the South Carolina Statehouse. This agreement seeks to reform the liquor liability insurance law, addressing the extreme financial hardships endured by bars and restaurants. Under the new provisions, while the $1 million minimum coverage requirement remains in effect, the introduction of a risk mitigation program offers businesses an opportunity to lower their insurance premiums.

Establishments may now also reduce their coverage limits based on their hours of alcohol service, allowing for greater flexibility in managing costs. Furthermore, new training requirements for all servers have been established, providing guidelines for proper ID checks which could influence related insurance costs.

An important aspect of the compromise involves modifications to the determination of liability in civil lawsuits, aiming to prevent businesses from being excessively penalized for the actions of intoxicated patrons. This adjustment seeks to alleviate some of the financial burdens that establishments have faced in the aftermath of incidents linked to the service of alcohol.

Both Governor Henry McMaster and officials from Charleston have expressed strong support for expedited action concerning liquor liability reform, emphasizing its significant implications for the local economy. The legislative changes introduced by bills SB 244 and SB 397 will primarily affect liability insurance rules for bars, restaurants, and nonprofit organizations. Most of the provisions resulting from this agreement are scheduled to become effective on January 1, 2026.

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Author: STAFF HERE CHARLESTON

CHARLESTON STAFF WRITER The CHARLESTON STAFF WRITER represents the experienced team at HEREcharleston.com, your go-to source for actionable local news and information in Charleston, Charleston County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Spoleto Festival USA, Charleston Wine + Food Festival, and the MOJA Festival. Our coverage extends to key organizations like the Charleston Metro Chamber of Commerce and the Charleston Museum, plus leading businesses in tourism and maritime industries that power the local economy such as South Carolina Ports Authority and the Charleston Visitor Center. As part of the broader HERE network, including HEREaiken.com, HEREbeaufort.com, HEREchapin.com, HEREcharleston.com, HEREclinton.com, HEREcolumbia.com, HEREgeorgetown.com, HEREgreenwood.com, HEREgreenville.com, HEREhiltonhead.com, HEREirmo.com, HEREmyrtlebeach.com, HEREnewberry.com, HERErockhill.com, HEREspartanburg.com, HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, and HEREsanantonio.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.