New liquor liability law to take effect in South Carolina

CHARLESTON, S.C. (WCSC) — A new liquor liability law goes into effect Jan. 1, combining previous House and Senate legislation aimed at helping businesses manage rising insurance costs.

Local businesses have closed due to increasing liquor liability insurance costs over the years. Roy Neal, owner of El Jefe Texican Cantina, said his liquor liability insurance has increased more than 10 percent each year.

“Many here on multiple on King Street that have closed down because of the liquor liability,” he said.

Law combines House and Senate bills

The new law combines liquor liability legislation from the House with tort reform from the Senate. In 2026, the bill will give business owners the option to lower the $1 million liability cap instituted in 2017.

Jessica Knox, general manager of Toast All Day, said her business supports the change.

“Toast All Day definitely agrees with the liability law. We’re supporting small businesses,” Knox said.

Neal said the reform is helpful but doesn’t go far enough.

“Any reform that the state did is helpful. I don’t think they went far enough,” he said.

Safety measures can reduce costs

The state is offering businesses ways to lower liquor liability insurance costs by implementing safety measures. One option is ID screening, which Toast All Day has been using to address problems with college students using fake IDs.

“With digital scanning, that takes out the issues of having a fake ID,” Knox said.

The law also encourages server training. Neal said it focuses on alcohol awareness.

“You’re not going to sell liquor to somebody that’s already overserved. And you’re not going to sell liquor to people that are underage,” he said.

Businesses can also reduce costs by keeping liquor revenue below 40 percent and stopping alcohol service at midnight.

Joint liability remains concern

Neal said the main issue causing business closures is joint liability, where establishments can be held responsible for customers who drink elsewhere after visiting their business.

“Has one drink at a place and then goes somewhere else and just gets hammered and is irresponsible wherever they had a drink is responsible. And that’s just, that’s a little too penal for everybody,” Neal said.