Liquor Liability
Despite the turbulent market, we are currently writing liquor liability in Charleston, Hilton Head, Bluffton, Myrtle Beach, Greenville, Columbia and everywhere in between.
Without this coverage, establishments that serve alcohol in any form, including wine, beer and spirits could end up footing the bill for damages done by an inebriated patron.
Your establishment could be sued if someone drinks at your location and then goes on to cause an accident, damage property or cause injury to themselves or others. Your standard general liability policy generally excludes alcohol related claims unless specifically added by endorsement.
Due to excessive litigation, many major insurance companies have stopped writing liquor liability in South Carolina. This has created an insurance marketplace with few options, high prices, and tough underwriting. We can help with these problems. We are blessed to still have several markets at our disposal that actively write liquor liability in our state. Request a liquor liability quote
South Carolina Law Update (Effective January 2026)
South Carolina’s new law effective January, 2026 includes some needed tort reforms as well as the opportunity for some establishments to reduce their required liability limits if they engage in mitigation efforts.
Without approved mitigation, businesses open after 5pm to sell beer, wine, and or liquor for on-premises consumption must carry a liquor liability policy with total coverage of $1Million during the period of the liquor license. This would be the aggregate limit, and the occurrence limit must be within 50% of that aggregate limit.
Per the SC DOR ABL Site:
If you hold any of these licenses and permits and are open after 5 p.m., you are required to have liquor liability insurance:
- On-Premises Beer & Wine (PBW)
- 7 Day On-Premises Beer & Wine (P07)
- Brewpub (PBB)
- Brewery (PWY)
- Domestic Winery (PDW)
- 7 Day Winery (P7W)
- Liquor Manufacturer (PML) with attribute to sell liquor produced on the premises for on-premises consumption
- Liquor Micro Distillery (PMD) with the attribute to sell liquor produced on the premises for on-premises consumption
- Business (Restaurant or Hotel) Liquor by the Drink (PLB)
- Nonprofit (Private Club) Liquor by the Drink (PLC)
- Professional Sports Venue (PSV)
- Beer & Wine Special Event (TBP)
- Liquor Special Event (TLP)
- Special (Donated) Nonprofit Event (TNL)
For a list of mitigation factors for potential limit reduction, please go to the following link: dor.sc.gov/alcohol-beverage-licensing-abl/operating-abl-business
What to Expect from the Market
While the new SC law allows for reductions in limits as part of their revisions, it must be understood that carriers may not offer these lower limits yet. It also must be understood that lower limits in this case may not translate into lower premiums overnight.
If you have a current policy – it is unlikely that current carrier will amend your limits mid-term. If that carrier or another would offer the lower limits your current policy may need to be cancelled and re-written. From our discussions with markets – many are still taking a “wait and see” approach before jumping back in.
Our Recommendation
As a protective measure and in the spirit of what insurance is intended to do, we advise against lowering your limits of liability on any type of policy unless it is absolutely necessary. You should insure yourself or your business for as much as you can afford to.
If you are only required to carry $300,000 in coverage and you have an actual claim for $500,000 you are left to make up the difference.
We would love the opportunity to speak with you and help you navigate this situation. We feel that we have a good handle on current and future market conditions. We also strive to give you the best advice to put you and your business in the best possible position moving forward.
Please contact us today for a quote or review. We’re more than happy to review your current policy(s) to give advice.