Will SC bars and restaurants get one-year reprieve from liquor liability insurance?

Bar and restaurant owners would not have to carry a $1 million liquor liability insurance policy for one year under a proposal approved by the state Senate on Wednesday.

The Senate during its annual budge debate voted to suspend the liquor liability law that passed last year in an effort to help bars stay open. The move would take place in a budget proviso, a one-year law attached to the state’s annual spending plan.

The liquor liability law has not worked as planned as bars and restaurants are struggling to stay open, said Senate Majority Leader Shane Massey.

“We have put them in a worse position,” Massey said.

The compromise between the House and Senate last year kept the $1 million liability insurance requirement in place, but offered ways for bars and restaurants to reduce that requirement to as low as $300,000 by taking certain measures.

However, insurance companies have not been offering smaller liability policies.

“Not only has it not resulted in lower liquor liability premium, it has resulted in higher premiums,” Massey said.

By inserting the proviso, Massey said he hopes to force the General Assembly to address the issue next year.

“This will require subcommittee work and discussion on the floor,” Massey said. “It would suspend it for this (coming) fiscal year to force us to have this conversation next spring.”

The proviso would have to be agreed to by the House.

If approved the suspension would be in effect between July 1, 2026, and June 30, 2027.

Even though the proviso was approved on a voice vote, it had some opposition.

“This is policy and process, and that might sound wonky and that might sound esoteric, but you don’t deal with public policy on the fly,” said state Sen. Luke Rankin, R-Horry.

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