South Carolina Lawmakers Address Rising Liquor Liability Insurance Costs

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News Summary

South Carolina lawmakers are responding to the soaring costs of liquor liability insurance affecting bars and restaurants statewide. The increase in insurance premiums has made it difficult for many establishments to operate, with some forced to reduce hours or close entirely. A recent insurance study report suggests legislative changes, including the potential amendment of dram shop laws, while advocacy groups emphasize the need for public safety. As the legislative session ends, bar owners are left concerned about their livelihoods amidst rising operational costs.

South Carolina Lawmakers Tackle Rising Liquor Liability Insurance Costs

Columbia, SC – As the sun sets over Columbia, the chatter of laughter and clinking glasses fills the vibrant bars and restaurants that dot the city’s landscape. However, behind the upbeat atmosphere, a serious issue is brewing. South Carolina lawmakers are stepping into the ring to address a rising crisis: the soaring costs of liquor liability insurance, which many bars and restaurants are now finding hard to afford.

The Dilemma

Bars and restaurants across the state claim that the recent uptick in insurance rates has made it nearly impossible for them to keep their doors open for business. This insurance is crucial as it protects establishments from liabilities resulting from intoxicated patrons who may cause harm. A law implemented in 2017 demands that any establishment serving alcohol must carry a minimum of $1 million in liquor liability insurance after 5 p.m., making it a hefty requirement for many business owners.

Unfortunately, the situation is further complicated by a dwindling number of insurance providers willing to offer coverage. This reduction has led to a frustrating cycle where establishments are forced to either limit their hours or significantly increase their prices, keeping their businesses afloat. Some owners are even cutting back on operations just to manage these skyrocketing costs.

The Ripple Effect on Businesses

Consider the story of one local bar owner, who has found it increasingly difficult to secure coverage that allows his establishment to serve past 2 a.m. Despite a stellar record with no violations over 30 years, the demands of the insurance world have proved burdensome. This shift in operating hours will, sadly, diminish the work opportunities for employees who rely on tips to make a living. It’s a domino effect that reverberates throughout the community.

Investigating Solutions

A legislative committee recently wrapped up an insurance study report, gathering insights from various stakeholders in the industry. The report makes a case for legislative change, highlighting the need for solutions that can ease the financial difficulties facing many businesses. One suggestion on the table is to amend the state’s dram shop laws, possibly limiting liability only to those businesses that knowingly serve intoxicated patrons. This could be a game-changer for many, allowing fewer financial burdens on establishments following responsible service practices.

In a related movement, advocacy groups like Mothers Against Drunk Driving are pushing to strengthen laws against driving under the influence instead of altering the existing liability framework. They argue that the focus should remain on ensuring public safety rather than making it easier for businesses to skirt responsibility.

Facing the Numbers

The bottom line? Many businesses have reported eye-watering hikes in their insurance premiums, soaring from around $7,000 to $18,000 monthly. The Blind Horse Saloon, a staple in the local dining scene, even announced its closure due to these rising liabilities. This transformation in the insurance landscape has resulted in annual costs ranging from $5,000 to over $300,000 for some establishments, leaving many owners scratching their heads.

Looking Ahead

As the legislative session wraps up, several proposed bills aimed at addressing this crisis fell through the cracks, leaving many bar and restaurant owners feeling disheartened. The harsh reality is that while victims of alcohol-related incidents deserve compensation, businesses are caught in a cycle of increasing costs that threaten their livelihoods.

With discussions ongoing, stakeholders and advocates are gearing up for the upcoming 2025-2026 General Assembly session, hoping to rally support and push for meaningful change that benefits both businesses and the communities they serve. The road ahead may be long, but one thing is clear: the spirit of South Carolina’s beloved bars and restaurants is worth fighting for.