Governor Henry McMaster signed the “tort reform and liquor liability” bill into law on Monday, May 12, and ceremoniously signed it on Wednesday, May 28.

The bill breakdown

Changes how liability is shared in lawsuits
Aims to lower business insurance costs
Sets new safety and insurance rules for businesses serving alcohol

How we got here

Locally-owned businesses have been sounding the alarm for years as restaurants, bars, and third places across SC are closing, citing rising liquor liability insurance premiums. Here in Cola, several local businesses like WECO Bottle Shop and Biergarten, Transmission Arcade, and New Brookland Tavern have been affected.

A 2017 state law requires businesses serving alcohol after 5 p.m. to carry at least $1 million in liability insurance. While designed to ensure coverage in alcohol-related incidents, the law contributed to increased insurance rates and fewer insurers operating in the state.

How the law addresses liquor liability

Businesses must still carry $1 million in liability insurance, but the new law outlines ways businesses serving alcohol after 5 p.m. can lower the insurance amount.

Stop alcohol sales at midnight (save $250,000)
Provide alcohol service training to employees (save $100,000)
Keep alcohol sales under 40% of total sales (save $100,000)
Use digital ID checks from 12 to 4 a.m. (save $100,000)
Be a nonprofit or host a licensed special event (save $500,000)

Feedback

This legislation is part of a broader effort to address liquor liability and business insurance costs in South Carolina, with more work still to come. Read the full law + if you are a local business owner affected by liquor liability insurance rates, let us know about your experience.