South Carolina bars and restaurants 'struggle to afford and find' liability Insurance as prices climb

MYRTLE BEACH, S.C. (WBTW) — South Carolina lawmakers are facing increasing pressure to address the state's liquor liability law. This comes as business owners report that the cost of required liability insurance has become unsustainable, impacting their operations and ability to remain open.

State senators voted last week to temporarily suspend part of the insurance requirement, though the proposal still needs approval from the House.

The current South Carolina law mandates that businesses serving alcohol carry at least $1 million in liability insurance.

The insurance mandate for businesses with state liquor licenses has been in effect since it was approved by the General Assembly in 2017.

This measure was originally enacted following a serious crash involving an uninsured drunken driver who left a bar, which also didn't have insurance, then crashed into a Dillon police officer, causing devastating injuries.

However, the costs associated with this insurance are now creating significant financial strain for many establishments.

Insurance agent Patrick Moore described the situation, stating, "It's a struggle to afford it…a struggle to find it…we have clients calling in desperation."

Moore highlighted the escalating costs, recalling that one client was paying less than $10,000 annually for coverage about seven years ago, whereas this past year – she paid $85,000.

He also noted the dire consequences for businesses across the state. "We're seeing businesses closed because they can't make ends meet," Moore said.

He added that some operators are "pivot[ing] to different, concepts that have lower alcohol sales and an attempt to keep their head above water."

Todd Pickler, owner of Voodoo Brewing Company in Myrtle Beach, has experienced these rising costs firsthand. He mentioned his initial perception of the state's economic landscape.

"We chose South Carolina because we thought, yeah, things are a bit cheaper down this way, but sadly it's not. It's not," Pickler stated.

Pickler further detailed the disparity in insurance costs between his South Carolina and North Carolina locations. He noted that he pays $46,000 annually for insurance in South Carolina, while a similar location in North Carolina, using the same insurance broker, costs just under $20,000 per year.

"Another location up in, N.C., about 2 hours away. And we utilize the same insurance broker and is paying just under, $20,000 for insurance where, I'm paying $46,000 a year for insurance," Pickler explained.

Pickler fears these elevated expenses will eventually be passed on to customers. He warned, "At some point, some of these costs will be passed on to the consumer, which just means, you know, higher food and alcohol prices."

Insurance agent Moore believes a more permanent solution is necessary beyond temporary suspensions. "I think there needs to be a legislative change that puts the responsibility on over consumption on the consumer and not on the bar restaurant owner," Moore commented.

The vote by state senators last week offers only a temporary suspension of part of the insurance requirement, meaning the broader question of long-term changes to the law remains unresolved. With only a few weeks left in the legislative session, both insurance agents and business owners hope lawmakers will take decisive action before time expires.

All facts in this report were gathered by journalists employed by WBTW. Artificial intelligence tools were used to reformat information into a news article for our website. This report was edited and fact-checked by WBTW staff before being published.