Gone are the remnants of Upstate bar and social scene favorites such as Blind Horse Saloon, Smiley's Acoustic Cafe and Rotties 221 Biergarten, all which have fallen victim to the South Carolina Liquor Liability Law, or, Bill 116.
Powdersville Pub and Topside Pool Club have fallen to the law, and more will follow.
In 2017, South Carolina legislation passed that bill into a law which enforced an insurance policy requirement towards businesses that sell and serve alcohol after 5 p.m.
The amount? At least $1 million in yearly coverage. The law passed to ensure that businesses have insurance to cover damages to victims that suffer in alcohol-related accidents.
Since then, insurance costs have risen to astronomical amounts as many insurance carriers have exited the state, with only a few options for coverage available to bars and businesses who serve and sell alcohol. In 2024, some establishments have stated that a policy that once costed $5,000 have grown upwards of $125,000, and in some cases even to $300,000, making the costs of insurance unaffordable for smaller bars and venues throughout South Carolina.
Here is everything to know about the South Carolina Liquor Liability Law and how it has altered local bar, entertainment and small venues in the area:
More:Entertainment venues face rising insurance costs, forcing some to close. More could follow.
What caused Bill 116 and the Liquor Liability Law in South Carolina.
In response to a fatal driving under the influence crash in 2014, a law was enforced in-which neither the accused driver nor the bars the individual attended had insurance, sparking legislation to pass Bill 116.
By 2017, Bill 116 had become law, and mandated that establishments who served and sold alcohol would need at least a $1 million yearly policy to ensure associated costs that may end in an accident or in fatality.
How much does an insurance policy cost for an establishment that sells and serves alcohol in South Carolina?
Rising claim costs, large judgements, settlement payouts and high coverage rates are what caused insurance premiums to skyrocket, which many small entertainment venues are struggling to or can no longer afford.
Insurance carriers report that for every dollar collected in premium, two dollars are paid out in claims and expenses, according to Michael Wise, director of the South Carolina Department of Insurance.
Yana Kosic Allen, former owner of Rotties 221 Biergarten told The Greenville News at the time she had been quoted a price of more than $25,000 for her insurance in 2023 year and a monthly payment of approximately $2,000. The year prior, she paid $300 a month.
Powdersville Pub closed due to the insurance increases, said Kesha Moore, who owned the pub. In 2020, Moore paid between $8,000 to $12,000 per year for a general and liquor liability policy. When the coverage ended in 2023, her bar was scheduled to pay nearly $22,000 for yearly coverage.
Leah Vaughan, owner of Local Cue, said that her insurance costs went from $60,000 annually to $141,000, and most recently had been quoted at $341,000 for the year. Because of the rising cost of insurance, she decided to discontinue alcohol sales and strictly operate as a restaurant.
Who is helping the cause to change Bill 116 and the South Carolina Liquor Liability Law?
Advocacy groups SC Venue Crisis and South Carolina Bar & Tavern Association have been at the forefront of raising awareness of the current laws affecting alcohol serving bars and event spaces throughout the state. Currently, there is a petition at scvenuecrisis.org that hopes to request a court order in hopes of change.
Their organizations also believe the law and increases could destroy the local music industry and is working to raise awareness and make changes statewide by crowdsourcing efforts and working alongside local legislators.
According to Rep. Thomas Beach, to make any change, Gov. Henry McMaster would have to call the Legislature back into session prior to January through an executive order. Statehouse and Senate members would have to revisit the law and go through a committee process to help regulate insurance rates for small entertainment establishments.
While the S.C. Department of Insurance does not have the authority to compel companies to offer liquor liability coverage, they realize the timeliness of the matter.
"We are aware of challenges facing South Carolina business owners today pertaining to the affordability and availability of liquor liability insurance," said Wise, of the South Carolina Department of Insurance. "The Insurance industry tells us that several factors are at play when determining the cost of this vital coverage, including rising claim costs, large judgments, settlement payouts, and high coverage."
The South Carolina Senate discussed Senate Bill 533, called the “S.C. Justice Act,” before the most recent session ended, but it did not pass. The bill modifies the liquor liability law by allowinga court to consider the percentage of fault when there’s an alcohol-related incident.
More:A Greenville bar is changing after liquor liability insurance costs strain business
Who to contact about the South Carolina Liquor Liability Law
Advocates of changing the South Carolina Liquor Liability Law are encouraged to email state representatives to address the issue and to also connect with local grassroots movements for additional support.
For those in the Greenville area, here are a list of contacts to consider when reaching out about the South Carolina Liquor Liability Law:
- Scott Talley (Greenville and Spartanburg Counties) — scottalley@scsenate.gov, 803-212-6048
- Jason Elliott (Greenville District 22) — 803-212-6877, 864-235-5308
- Gov. Henry McMaster — 803-734-2100
For more information on supporting this cause, visit scbata.org and scvenuecrisis.org.
– A.J. Jackson covers the food & dining scene, along with arts, entertainment and downtown culture for The Greenville News. Contact him by email at ajackson@gannett.com, and follow him on X (formally Twitter) @ajhappened. This coverage is only possible with support from our readers.Sign up today for a digital subscription.
