South Carolina bar and restaurant owners will not receive a temporary break from state liquor liability insurance requirements after lawmakers removed a proposed suspension from the 2026-27 state budget.
The Senate’s version of the budget included a provision to suspend the law for one year, providing interim relief while legislators weighed potential updates. However, a six-member budget conference committee stripped the measure after finding it violated House budget rules.
Updated in 2025, South Carolina law requires alcohol-serving establishments to carry at least $1 million in liquor liability insurance. Businesses can lower that threshold to $300,000 by meeting key safety criteria, such as closing by midnight, requiring employee alcohol-server training, and utilizing digital ID scanners for age verification.
The decision leaves business owners struggling with soaring insurance premiums that threaten to force some establishments to close.
Lawmakers will review the final state budget when they return to Columbia on Aug. 11. South Carolina has operated under a continuing resolution since July 1 due to missed budget deadlines for the new fiscal year.
Without the proposed suspension, bars and restaurants must continue meeting existing insurance mandates to remain in operation.
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