Columbia, South Carolina – Less than a year after South Carolina lawmakers approved a major change to the state’s liquor liability system, senators are now weighing a sharp reversal.
The issue is tied to a law that was meant to help bars, restaurants and other alcohol-serving businesses survive a difficult insurance market.
Instead, Senate Republican leaders say the pressure has continued.
For many owners, especially small and locally run businesses, the promised relief has not arrived.
The law required businesses that sell alcohol after 5 p.m. to carry at least $1 million in liquor liability insurance.
Supporters hoped the measure would bring more order to a troubled system, limit lawsuits against alcohol-serving establishments and help slow the rise in premiums. It also included incentives meant to reduce risk and lower costs, such as encouraging businesses to stop serving alcohol before midnight.
But the results have fallen short of those expectations.
Senators said insurance companies have largely refused to offer lower coverage options, even for businesses that tried to qualify for reduced requirements by closing earlier or showing they carried less risk. Instead of flexible policies and cheaper premiums, many owners have continued facing high insurance costs.
Sen. Brian Adams, R-Berkeley, said he ran into the problem directly while trying to open a restaurant.
“Not one insurance company would accept that,” Adams said according to WTOC.
“They said they’re either going to cover us for a million dollars or they will not cover us.”
That experience has become part of a larger debate inside the State House. Lawmakers who supported last year’s changes are now acknowledging that the law has not worked the way they intended. While it was designed to keep doors open, they say some businesses are still closing because they cannot manage the cost of coverage.
Now, senators are considering a temporary pause on the liquor liability requirements. The proposal would remove the insurance mandate altogether for a limited period, allowing businesses to sell alcohol without carrying liquor liability coverage. The suspension would remain in place through June 2027.
The measure is connected to the state budget currently being considered by the Senate. Republican leaders have said some fixes could still move before the current legislative session ends, though they also recognize that a broader solution may take longer and could stretch into next year.
The pause is not final. The Senate must first approve the full budget. After that, the proposal would still need to survive negotiations with the House and receive approval from Gov. Henry McMaster.
For now, the debate marks a clear admission from senators: the law passed to ease the burden on bars and restaurants has not done enough.
