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 Greenville, Smiley’s, Velo Fellow, and Blind Horse Saloon were among the businesses to shutter.
In 2017, a new state law required businesses serving alcohol after 5 p.m. to carry at least $1 million in liability insurance. While the law was designed to ensure coverage in alcohol-related incidents, it has led to financial strain on small businesses by driving insurers out of the state + causing rates to spike.
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How the law addresses liquor liability
Businesses must still carry $1 million in liability insurance, but this 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)
This is just one piece of the legislation, and several business owners initially think this is a step in the right direction, but there’s more work to be done. Read the full law + let us know what you think about it.
