Liquor liability law drives up insurance rates for SC bars

SOUTH CAROLINA — Local bar owners in South Carolina are facing skyrocketing insurance rates due to a liquor liability law passed in 2017, with some stating it could force them to close their doors.

The law mandates that bars maintain liability insurance coverage of $1 million to protect victims of drunk driving accidents caused by their customers.

This requirement has resulted in dramatic increases in insurance costs, straining the finances of local businesses.

ALSO READ: Deputy fired, charged with assault after bar attack in Shelby

Scott Grant, owner of LA Tap Room in Lancaster, shared, “The people trying to make a living doing this - they don’t stand a chance.”

His insurance costs surged from $4,000 in the first two years to over $35,000 after his previous insurer stopped offering coverage for bars in South Carolina.

He is struggling to find affordable alternatives. “The one quote I got: 35,000 dollars,” Grant stated, illustrating the drastic shift in insurance pricing.

Bryan O’Neal, owner of Benford Brewing and Sawmill, echoed Grant’s concerns. He noted, “I can’t even get a quote,” emphasizing the tough insurance climate for bar owners in the state.

O’Neal attributed this situation to the liquor liability law, saying it has hindered insurance companies from operating effectively in the state.

He acknowledged that if he didn’t diversify his business, the brewery would be out of business.

Changes made to the law in the last legislative session aim to support bar owners facing these challenges.

Lawmakers capped business liability in DUI cases at 50% and allowed bars that train servers and use ID scanners to qualify for reduced coverage.

These measures are intended to facilitate a more manageable insurance landscape for local businesses and improve their viability in the market.

According to a local lawmaker involved in the changes, the intention was to set measures in place that should impact insurance rates.

He mentioned, “Of course, markets always take a while to adjust - but we believe that we took some pretty good measures in starting to target things that should make those rates come down.”

As bar owners await the effects of the legislative changes on insurance rates, they remain anxious about the future of their businesses.

Continued advocacy for more supportive measures is expected as they strive to maintain their operations amid rising costs.

VIDEO: Deputy fired, charged with assault after bar attack in Shelby