Locally-owned businesses have been sounding the alarm for over a year. Restaurants, bars, and third places across SC are closing, citing rising liquor liability insurance premiums.
It’s a complex issue, and we’re trying to help make it easier to understand.
A 2017 law
Let’s go back to 2017 when a new state law required businesses serving alcohol after 5 p.m. to carry at least $1 million in liability insurance.
“This bill will, quite literally, be a lifesaver for many families,” said SC Association for Justice President Alex Cash, when it was signed by Governor Henry McMaster seven years ago.
While the law was designed to protect victims of alcohol-related incidents, it has led to financial strain on small businesses and driven insurers out of the state, causing rates to spike.
Local businesses were hit hard
Liquor liability premiums have skyrocketed:
- WECO Bottle Shop and Biergarten owner Phill Blair said it’s “nearing catastrophic levels for independent businesses” and many are “clinging on here hoping something gets done in the next legislative session.”
- Transmission Arcade has seen its rates jump from $6,000 to $65,000.
- New Brookland Tavern saw its premiums rise to $70,000, threatening its future.
- Summerville VFW saw its rate jump from $9,500 to $69,000, forcing its closure.
- Local Cue, a Greenville sports bar, temporarily stopped selling alcohol after facing a $341,000 quote. It has since been purchased by a different local restaurateur to keep the bar open.
Are you a local business owner dealing with rising liquor liability insurance rates? Let us know about your experience.
SC’s insurance market
A SC Department of Insurance report reveals liquor liability insurance is unprofitable for insurers, leading to fewer carriers + leaving small businesses with rising premiums and limited options.
“Most insurance companies don’t respond at all,” Blair said. “Our rates are 300% higher than they were a short time ago.”
Next steps
How will SC protect its local businesses while maintaining safety and responsibility? In the best-case scenario, lawmakers could reach a compromise in early 2025. However, seeing the issue delayed until May of 2026 would be the worst case scenario for businesses.
