Liquor liability law threatens S.C. small businesses, advocates say – Charleston City Paper

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A grassroots movement led by small business owners and other community members across the Palmetto State is looking to undo damage they say was caused by the 2017 passage of new state liquor liability insurance laws. 

The law in question, S. 116, requires all bars, restaurants and venues that serve alcohol after 5 p.m. to carry a $1 million liability insurance policy. The measure was meant to protect victims of drunk driving and their families. But organizers with the grassroots SC Venue Crisis organization say the measure was missing key language to prevent it from being exploited to the detriment of business owners. 

“The insurance policy is typical in business — it’s normal to have coverage of that nature,” said organizer Asheton Reid, one of three organizers who is from Piedmont. “But when there’s no percentage of fault rules attached to that — even if you are just 1% at fault — you can be held responsible for $1 million.”

And in South Carolina, multiple establishments can be held 100% in a lawsuit — the real crux of the problem, Reid said. 

“Frivolous lawsuits in the wake of S. 116 have caused spikes in insurance rates,” she said. “We aren’t saying the victims don’t deserve anything, but this is making insurance companies leave the state. In 2017, we had at least 12 insurance providers, and now we’re down to three in just a few years.”



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