SPARTANBURG, S.C. (WSPA) – Dozens of Upstate business owners gathered to hear from state industry leaders about liquor liability laws at Monday’s brunch. The brunch was hosted by One Spartanburg, Inc.
In 2017, South Carolina passed a law making businesses fully legally responsible for overseeing the consumption of alcohol they serve. Businesses that serve alcoholic beverages after 5 p.m. are also required to carry at least $1 million in liquor liability insurance.
“It keeps growing every year,” said Ponceola Mack Abernathy, owner of the Clevedale Historic Inn and Gardens. “It's between $4,000 and $5,000 a year.”
Mac Abernathy said when he opened his bed and breakfast 10 years ago, he was paying $1,000 to $2,000 a year for liability insurance. She is a small business owner and has begun passing on her premium increases to her customers, she said.
“Renters should be required to carry additional insurance, including liquor liability,” said Mac Abernathy.
Liquor liability insurance protects your business if your business is sued because a customer is harmed or harmed because the person drinking the alcohol was underage or was served a large amount of alcohol. But Mac Abernathy's insurance premiums pale in comparison to other owners.
“We've been serving alcohol for 23 years,” said Roger Newton, CEO of Spartanburg Memorial Auditorium. “We've never had to file a claim. Last year, my premiums went from $1,200 for him to $56,000 for him.”
These rising insurance premiums have caused owners to worry about whether they will be able to serve alcoholic beverages in the future. 7NEWS has reported on this concern in the past.
Sarah Hazzard, president and CEO of the South Carolina Manufacturers Association, said the law needs to change.
“If you're involved in a lawsuit, it doesn't matter if you're less than 50 percent at fault,” Hazzard says. “You may also be 1% at fault. You could be 100% financially responsible.”
One Spartanburg CEO John Kimbrel said this growing concern led him to hold the brunch and warn lawmakers and the public about what will happen if the situation doesn't change.
“Small businesses could be forced out of business, and the burden will be passed on to their customers,” Kimbrel said. “Prices may rise.”
In early February, the South Carolina House of Representatives approved a bill that would allow liquor stores to open for a few hours on Sundays if local governments allow it. The bill still needs approval from the state Senate.
