News Summary

As liquor liability insurance costs soar, South Carolina lawmakers propose changes to the state’s laws to support local businesses struggling to stay afloat. With many establishments facing doubling insurance rates, the impact on the local dining and nightlife scene is significant. A bill is on the table to amend liquor liability, balancing victim compensation with the survival of bars and restaurants. Community support becomes crucial as lawmakers strive for solutions by May, amid concerns over the potential effects on advocacy for alcohol-related incident victims.

Changes Proposed to Liquor Liability Laws Amid Rising Insurance Costs in South Carolina

As the sunsets over South Carolina, the state’s lawmakers are standing up for local businesses facing a daunting challenge in the form of skyrocketing liquor liability insurance rates. With many establishments battling to keep their doors open, the discussion around liquor liability laws is heating up.

Crisis Mode: Local Businesses Struggle to Survive

Reports indicate that several businesses have been forced to shut down as a direct result of the soaring insurance premiums. It’s a tough pill to swallow for owners when they learn their insurance costs are set to double for 2024. In particular, small business owners, including bars and restaurants that serve alcoholic beverages, are finding it increasingly difficult to balance operational expenses and the new insurance requirements.

The changes stem from a law enacted in 2017 that mandates any establishment serving alcohol after 5 p.m. to carry a minimum of $1 million in liability insurance. Unfortunately, this law has proven to be a double-edged sword, leading some insurers to exit the South Carolina market entirely and causing rates to increase dramatically. Business owners now face an impossible choice: renew their crippling insurance policies or close their beloved establishments.

Local Business Closures and Community Impact

One establishment feeling the pinch is The Brew Cellar, which is set to close just two days after celebrating its 11th anniversary. The decision to close wasn’t taken lightly, as this beloved local bar reflects the kind of community spirit that makes South Carolina special.

Bar owner Zach Dennis expressed the disillusionment of many similar business owners across the state. As their struggles become a daily challenge, the questions keep piling up: Can anyone remain in business? What’s the future for local dining and nightlife scenes?

Lawmakers are stepping in, led by newly elected State Sen. Ed Sutton. He’s advocating for a bill aimed at changing how liquor liability is determined, hoping to find a middle ground that allows for both the compensation of victims while continuing to support the survival of local businesses.

Finding a Solution: The Path Ahead

The pressures on local businesses are not just financial. There’s a growing concern over whether changes to the laws might affect victim advocacy, as those who support victims of alcohol-related incidents have voiced their apprehensions around shifting liabilities.

However, numerous business owners have rallied around the idea that those changes are vital to their very livelihoods. High costs of liability insurance are putting even the most dependable and well-managed places at risk of closure. It’s a situation that has left many owners feeling vulnerable and at odds with their communities.

Lawmakers are actively working towards a solution—they aim to have something laid out on the Governor’s desk by May. Nevertheless, there’s a lingering worry that for some businesses, this may come too late.

The root of the surge in insurance costs primarily stems from the possible liabilities linked to alcohol-related incidents but is also worsened by a lack of insurance carriers willing to provide coverage at reasonable rates. One of the proposed solutions under discussion is an amendment to the Joint and Several Liability laws, which currently hold businesses accountable for damages—even in instances where they might only be minimally responsible.

Community Support Essential

As this issue continues to unfold, it has become more important than ever for the community to come together. Local restaurants and bars are encouraging patrons to show their support by visiting these establishments. The deterioration in this landscape could have unforeseen long-term impacts on South Carolina’s vibrant culinary scene.

In addition to bar owners, numerous VFW posts across the state have had to close their doors because they cannot afford the soaring insurance rates. The larger conversation about liquor liability connects with the wider state of South Carolina’s overall liability law structure.

As discussions continue, it will be fascinating to see how this narrative evolves. Community members and business owners alike are holding their breath, hoping for solutions that can lift the burden from them while still ensuring that victims of alcohol-related incidents receive the justice they deserve.

Deeper Dive: News & Info About This Topic

• ABC News 4
• Wikipedia: Liquor Liability Law
• Count on 2 News
• Greenville Business Magazine
• Post and Courier