South Carolina lawmakers to discuss legislation addressing rising liquor liability rates

COLUMBIA, S.C. (WCBD) — State lawmakers are taking initial steps to address concerns about rising liquor liability rates, as two bills are being discussed by a group of senators on Thursday in Columbia.

One of the bills that aims to address this issue is S. 184, which would change South Carolina’s dram shop liability laws, and how the basis of liability is determined. State Sen. Ed Sutton (D), who represents parts of Downtown Charleston, West Ashley and James Island is one of the sponsors of the bill. He said the legislation is modeled after the state of Alabama’s Dram Shop Act.

“That bill was successful in lowering the insurance premiums there so I’m glad we’re looking at what’s worked elsewhere and emulating that strategy here,” Sutton explained.

Rising insurance rates have been an issue for restaurant and bar owners over the last few years, with some saying their premiums have more than doubled when they came up for renewal in 2024. This came after a state law was passed in 2017 that required establishments serving alcohol past 5 p.m. to carry a policy with a total coverage of at least $1 million. The change was made to ensure victims of alcohol-related incidents received proper compensation, but many in the industry say it has led to insurance companies pulling out of the state and skyrocketing rates — ultimately causing restaurant and bar closures.

Sen. Sutton said he hears concerns about the rising liquor liability insurance rates from people in his district daily.

“In the last three years, the climb in premiums has been astronomical and it’s quite frankly been very unfair. We’re seeing most recently in the region is Brew Cellar and Local 616 closing out — there’s been a lot more,” he said.

Sen. Sutton explained that it is a priority for him to take steps that can help lower the rates, and he believes S. 184 will help accomplish that.

“This issue because it’s been ignored and because people were unwilling to compromise is putting small businesses out of business,” he said. “And I think that’s incredibly unfair — so this is a top priority for my district, so it’s a top priority for me.”

S. 184 will be discussed on Thursday during a Senate Judiciary Subcommittee meeting, as well as S. 244. Sen. Sutton believes S. 244 will draw more controversy than the bill he’s sponsoring because it involves tort reform. In the past, victim advocates have discouraged making changes to tort laws that could potentially impact victims.

However, Sutton said he believes lawmakers can help find a balance when making policy changes that lower liquor liability rates while also continuing to protect victims.