COLUMBIA, S.C. – On March 6, 2025, the South Carolina House of Representatives unanimously approved a bill aimed at reforming liquor liability laws in the state. The legislation seeks to address rising insurance premiums that have burdened bars, restaurants, and venues serving alcohol.
Key Provisions of the Bill:
• Insurance Requirements: The bill allows establishments to set up captive insurance companies to provide at least half of the required $1 million liquor liability coverage. This approach offers businesses an alternative to traditional insurance providers.
• Risk Mitigation Incentives: Establishments can qualify for reduced liability insurance amounts by implementing risk mitigation measures. These include mandatory responsible alcohol server training for employees and managers, and adhering to specific operating conditions, such as ceasing alcohol sales earlier.
• Alcohol Server Training Program: The Department of Revenue, in collaboration with the Department of Alcohol and Other Drug Abuse Services and the State Law Enforcement Division, is authorized to approve alcohol server training programs. These programs aim to promote responsible alcohol service and reduce incidents related to overconsumption.
Background:
Since the enactment of the Dram Shop Bill in 2017, which mandated that establishments serving alcohol after 5 p.m. carry at least $1 million in liability insurance, many businesses have faced escalating insurance costs. This financial strain has led to closures and concerns about the sustainability of operations within the hospitality industry.
The unanimous passage of this bill reflects the legislature’s recognition of the challenges faced by these businesses and represents a concerted effort to provide relief.
Next Steps:
The bill now advances to the South Carolina Senate for consideration. If enacted, the reforms are expected to alleviate the financial pressures on establishments serving alcohol, while promoting responsible service practices across the state.
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