South Carolina business owners are grappling with rising insurance costs, largely due to the state’s personal injury lawsuit laws. Many entrepreneurs, like Josh Painter from Kirby Sanitation, report premium increases of up to 30% each year. This surge in costs is often passed on to customers, creating a ripple effect across various sectors.
A significant concern for these business owners is the current liability laws in South Carolina. Under these laws, a company may be held responsible for the full amount of damages in a lawsuit, even if it was only slightly at fault. This has led to soaring insurance premiums, with some fearing that a single lawsuit could jeopardize their business.
In response to these challenges, a new bill has been proposed, backed by Governor Henry McMaster. The legislation aims to change the liability laws so that businesses only pay for damages proportional to their level of responsibility. This proposal has ignited a fierce debate among lawmakers, with divisions emerging within the Republican Party and between trial lawyers and business advocates.
Supporters of the bill argue it would align South Carolina with other Southeastern states and relieve businesses from excessive legal burdens. Senate Majority Leader Shane Massey emphasizes that no one should be liable for damages they did not cause, stating that the current system discourages insurance companies from operating in the state, which in turn raises costs for policyholders.
However, the bill faces strong opposition. Critics, including Donald Trump Jr. and the South Carolina Association for Justice, argue it favors insurance companies at the expense of accident victims. They claim it could make it harder for injured parties to receive fair compensation. Senator Tom Fernandez has alleged that pro-attorney lobbyists offered him substantial sums to help block the bill.
The proposed legislation also touches on various aspects of business insurance, such as liability for establishments serving alcohol, medical malpractice claims, and construction defects. Since a law was enacted in 2017 requiring bars and restaurants to carry a minimum $1 million liquor liability policy, many hospitality businesses have seen their insurance options dwindle, leading to even higher costs.
While insurance representatives have largely stayed out of the public debate regarding the bill’s potential impact on premiums, some lawmakers point to examples from states like Florida, where similar legal reforms led to reduced insurance rates.
As discussions unfold in the South Carolina Senate, the fate of the bill remains uncertain. Business owners, attorneys, and lawmakers are divided over how to balance protecting businesses from financial ruin while ensuring fair compensation for accident victims. The outcome will likely hinge on the ongoing conflict between these two interests.