Liquor Liability Reform Advances in South Carolina
COLUMBIA, S.C. (WPDE) — A legislative effort to reform liquor liability insurance is gaining momentum in South Carolina, with businesses struggling to cope with skyrocketing premiums. The proposed bill, which passed the House, aims to tackle what is being called a “liquor liability crisis.”
Back in late February, Michael Wise, director of the South Carolina Department of Insurance, told Senators, “For the greater than 30 percent alcohol sales establishments, their average premiums from 2021-2023 increased by 180 percent.”
The House bill seeks to mitigate these expenses by ending joint and several liability. It does this by removing conduct involving alcohol from the list of behaviors to which a section of the Uniform Contribution Among Tortfeasors Act does not apply.
The bill also aims to expand insurance options through a Liquor Liability Risk Mitigation Program. This program would incentivize responsible alcohol service. It also has the potential to lower premiums for businesses that implement key safety measures. The legislation also mandates alcohol server training and strengthens enforcement to prevent sales to intoxicated patrons.
Representative William Bailey of Little River stated, “If you do the right things and you start trying to clean up your business and make sure that you are one the more responsible businesses, you can actually reduce your rate down to $250,000 a year, which should cost less.”
Bailey also noted the bill considered input from law enforcement and victims of drunk-driving incidents, stating, “It takes everyone into consideration. Just about every partner involved has had a chance to warm up to the idea the house put forward.”
The bill introduces a felony DUI charge in cases where victims require extensive medical care. It also mandates interlock ignition devices for offenders, and increases driver’s license suspension periods.
Despite enjoying support from the South Carolina Bar and Tavern Association, which sees the bill as a temporary fix, broader liability lawsuit reform remains stalled in the Senate. The association has called the current proposal a “band-aid” solution compared to more comprehensive reforms.
“If the insurance premiums drop, they can call it a ‘band-aid’ or anything else as long as the insurance premiums drop,” Bailey said.
