South Carolina’s Spiraling Liquor Liability Insurance Rates: A Brewing Crisis for Bars and Restaurants

News Summary

Bars and restaurants in South Carolina are facing a severe challenge due to skyrocketing liquor liability insurance rates, which have increased tenfold in the last two years. This dramatic rise in premiums has led to the closure of several local establishments, prompting lawmakers to propose bills aimed at mitigating the financial burden on small business owners. With public support for reform growing, the future of the state’s vibrant bar scene hangs in the balance as legislative discussions gain momentum.

South Carolina’s Spiraling Liquor Liability Insurance Rates: A Brewing Crisis for Bars and Restaurants

Whether you’re grabbing a refreshing cocktail in Charleston or enjoying a cold brew in Greenville, the local bar scene has always been an essential part of South Carolina’s vibrant culture. But just when you thought things couldn’t get tougher for these beloved establishments, they are facing a new challenge that is making waves: skyrocketing liquor liability insurance rates! These jaw-dropping increases are causing many bars and restaurants to shutter their doors, leaving locals in distress.

A Dramatic Shift in Premiums

It may come as a surprise that numerous bars and restaurants are grappling with a steeper rise in insurance premiums, which have climbed by a staggering tenfold over the past two years. Local businesses are feeling the financial pinch in a big way, as some are forced to close due to these skyrocketing costs. Just recently, four bars in Charleston and Greenville have succumbed to this harsh reality, reflecting a worrying pattern that stretches across the state.

Legislative Efforts to the Rescue?

In light of this situation, lawmakers in South Carolina are stepping up to the plate with not one but two proposed bills aimed at helping reverse this trend. The S.C. Senate is buzzing with discussions around these potential game-changing efforts that could clarify liquor liability and ease insurance rates for small business owners.

The first bill, S. 244, introduced by the Senate Majority Leader, focuses on implementing broad lawsuit reform measures designed specifically to lower liquor liability rates. Currently, businesses that serve alcohol can be held responsible for 100% of damages, even if they are found to be only minimally culpable—think as low as 1%. This legislation hopes to change that, granting some much-needed relief to local establishments.

Public Support on the Bill

Interestingly enough, a recent poll revealed that a whopping 63% of South Carolinians back the tort reform approach outlined in S. 244. It reflects the sentiments of many citizens who recognize that the increasing insurance costs could potentially devastate the community’s social fabric.

Defining “Dram Shop” Liability

The second piece of legislation, S. 184, seeks to clarify “dram shop” liability by laying out specific conditions that must be met for bars to be held accountable for overserving their patrons. Under this bill, plaintiffs would have to prove that the customers were either visibly intoxicated or that the bar was aware—or should have been aware—of the patrons’ intoxication. Additionally, advocacy groups have expressed a desire for clearer definitions regarding terms like “visibly intoxicated” to avoid ambiguity and ensure fairness.

The Ripple Effect of Previous Laws

The backdrop to this unfolding drama is a 2017 law that significantly increased the minimum liquor liability coverage—spiking it to a hefty $1 million for establishments serving alcohol after 5 p.m. This has left many local bars and restaurants in a lurch, where even the once plentiful insurance options have shriveled up. Business owners report difficulty finding insurance providers willing to offer coverage, especially for later hours, which is becoming increasingly detrimental to employee hours.

Local Business Owners Savvy to the Threat

Many small business owners are becoming vocal about how the existing laws seem to favor larger corporations, putting local establishments at serious risk of closure due to soaring insurance costs. The fear is palpable: without some intervention, cities like Charleston may see a shift towards chain restaurants dominating the culinary landscape.

Stakes Are High and Time Is Essential

Lawmakers are intensifying their efforts, hoping to have these crucial bills ready for the governor’s desk by May. However, for some establishments, this legislation may come too late. The concern is that without immediate action, the community might lose invaluable local gems that contribute to its unique charm and cultural identity.

As the debate heats up in the S.C. Senate, the clock is ticking, and all eyes are on how legislators tackle this pressing issue that impacts both business owners and diners alike.

Deeper Dive: News & Info About This Topic

HERE Resources

Charleston’s Dining Scene Faces Tough Times
South Carolina Lawmakers Address Rising Liquor Liability Insurance Costs
Charleston Introduces New Culinary Destinations
South Carolina’s Bars and Restaurants Face Insurance Crisis
New Culinary Ventures Brighten Charleston’s Dining Scene

Additional Resources

• Charleston City Paper: Liquor Liability Crisis
• Count on 2: South Carolina Lawmakers Discuss Legislation
• WLTX: South Carolina Bars Struggle with Insurance Costs
• ABC News 4: Forced Closures Due to Liquor Liability Law
• Greenville Business Magazine: Liquor Liability Premiums Rise
• Wikipedia: Liquor Liability
• Google Search: Liquor Liability Insurance South Carolina
• Google Scholar: Liquor Liability Insurance
• Encyclopedia Britannica: Liquor Liability
• Google News: South Carolina Liquor Liability