New liquor liability insurance program promises affordable coverage for at-risk businesses

July 18, 2026 - 03:14

Hundreds of small businesses across South Carolina have shut their doors in recent years, with owners pointing directly to the crushing cost of liquor liability insurance. State law requires any business serving alcohol to carry this specific policy, but premiums have soared so high that many mom-and-pop shops simply cannot afford to stay open. Now, a new partnership between the state's hospitality association and a specialty insurer is offering what they call a more affordable alternative.

The program, launched this month, targets the "at-risk" category of businesses that have struggled to find coverage on the open market. This includes neighborhood bars, live music venues, and restaurants that host late-night events. Under the new plan, qualifying businesses can access a pooled insurance model that spreads risk across a larger group, lowering individual premiums. Organizers say the goal is to stabilize the market and prevent more closures.

"We are not just talking about keeping the lights on. We are talking about keeping the community gathering spots alive," said a representative from the hospitality group. The program also includes mandatory training for staff on responsible alcohol service, which helps reduce the chance of incidents that lead to lawsuits. For now, the coverage is limited to South Carolina, but similar models are being watched by other states facing the same insurance crisis.