The South Carolina Senate has voted to suspend the state’s controversial $1 million liquor liability insurance requirement for hospitality establishments. The amendment, attached to a state appropriations bill, would pause the mandate until June 30, 2027, providing temporary relief to an industry struggling with skyrocketing premiums.
The 2018 law, among the strictest in the nation, was originally enacted following several high-profile drunk-driving fatalities and significant lawsuit verdicts. However, the high cost of compliance has since forced numerous bars, restaurants, and concert venues across the state to close.
Efforts to reform the system in 2025 via House Bill 3430—which allowed for lower coverage limits in exchange for safety training and early closing times—failed to sway insurance carriers.
The proposed suspension aims to grant small businesses breathing room while the General Assembly prepares a comprehensive overhaul of the liability laws for the 2027 legislative session. The measure now moves to the House of Representatives, where its passage remains uncertain. If ratified, the suspension would take effect immediately, halting the requirement for the next year.
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