The South Carolina House of Representatives has taken a significant step towards reforming liquor liability laws. On Thursday, the House voted unanimously, 109-0, in favor of a new bill aimed at easing the financial burden on bars and restaurants regarding liquor liability insurance. This legislation seeks to end the joint-and-several liability rule, which has long been a concern for business owners and insurers alike.
House Bill 3497 proposes several key changes. It will allow captive insurance companies to offer liquor liability insurance without a limit on coverage. However, these companies cannot provide policies that reduce coverage limits based on legal costs. Additionally, the bill introduces a risk-mitigation program. Bars that stop serving alcohol at midnight could reduce their required insurance coverage by $100,000, with further reductions possible if they limit alcohol sales earlier in the evening or if less than 40% of their sales come from alcohol.
Another important aspect of the bill is its aim to change how damages are assigned in accidents. Currently, businesses with deeper pockets often bear the brunt of financial responsibility after incidents. By repealing the joint-and-several liability clause, the bill would allow juries to allocate blame more fairly among parties involved in an accident. The bill also includes stricter penalties for individuals convicted of driving under the influence.
Despite the overwhelming support in the House, the bill’s future in the Senate is uncertain. Last year, the Senate declined to consider a similar measure, and there are concerns that a broader tort-reform bill, Senate Bill 244, which seeks to limit joint liability for various businesses, may also falter. Critics of SB 244 argue that it could allow insurance companies to shift blame unfairly during litigation.
Opponents have raised alarms about a provision in the tort-reform bill that would require plaintiffs to wait up to 10 months before filing bad-faith lawsuits related to insurance claims. This provision could delay justice for those seeking compensation from insurers.
As the bill moves to the Senate, its fate remains unclear. Supporters hope that the reforms will lead to lower insurance costs and a fairer legal landscape for businesses in South Carolina.