South Carolina bars and restaurants have been struggling to stay open due to rising insurance costs. In response, the state Legislature considered several reforms.

The House passed a bill to ease liquor liability laws, aiming to lower insurance premiums by penalizing establishments that serve intoxicated patrons and offering reduced liability coverage for businesses that take precautions like stopping alcohol service at midnight.

Meanwhile, a broader Senate tort reform bill, which includes liquor liability changes, has stalled due to an amendment dispute. Gov. Henry McMaster is urging lawmakers to pass a solution.

The Greater Summerville/Dorchester County Chamber of Commerce convened a Public Policy and Business & Community Development Divisions meeting to discuss Tort Reform legislation (Bill S.244) in South Carolina. While the Chamber is not taking a position, it served as a neutral platform for discussion on how this bill could impact businesses and the state's economy.

WATCH THE FORUM HERE

Key Takeaways:

🔹 Senator Sean Bennett emphasized that tort reform has been a long-standing issue, particularly regarding alcohol liability insurance affecting bars and businesses. He stated, “This is about fairness—ensuring no party is forced to overpay.” The bill will be in front of the Senate this week, where it will likely be hotly debated. Senator Bennett pointed out that the bill is an effort at total reform in the state across many industries.

🔹 Will Frierson, the Executive Vice President and Chief Government Affairs Officer for the SC Chamber, highlighted that liability extends beyond liquor-related cases, impacting all businesses. He explained that juries can currently only consider named defendants, but the bill aims to ensure all negligent parties share accountability fairly. While it may not guarantee lower insurance rates, it seeks to create a more predictable legal environment.  The state Chamber's position is that the current system adversely impacts businesses - including small businesses that cannot survive a hefty lawsuit - leading to increased premiums, reduced availability of insurance coverage, and a target on entities that are perceived as having “deep pockets.” The state Chamber is backing the bill.  READ MORE HERE.

🔹 Representative Gil Gatch expressed concerns, arguing that the bill goes too far and could negatively impact South Carolinians. He pointed out key issues, including:

• Building defect lawsuits: Plaintiffs must show damage or injury before suing. Currently you can sue for a defect if negligence is found.
• Insurance claim timelines: Companies would have 10 months to pay a claim. Currently you can ask for the insurance company to pay the max in a “reasonable time”. 
• Medical malpractice: A doctor must be guilty of a crime, not just negligence, to be held accountable.

Representative Gatch warned that the bill does more to hurt victims and that liquor liability issues will be addressed separately in a House bill.

The Insurance Challenge:

• Bennett reported that SC had 34 alcohol liability carriers but now only three remain that would insure bars. This creates sky-high costs for restaurants, and is a leading cause of many to close. 
• Gatch suggested insurance companies are leaving SC to pressure lawmakers, a claim Bennett called ludicrous.

If the bill moves forward, the debate continues on striking a balance between fairness for businesses and protections for residents.