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South Carolina Bars Are Struggling with Skyrocketing Insurance Costs—Can Lawmakers Offer Relief?

COLUMBIA, S.C. – The South Carolina hospitality industry is facing an existential crisis as liquor liability insurance premiums continue to surge, forcing many beloved bars and restaurants to close their doors. The latest casualty is Bumpas Bar, a popular Charleston institution, which will host its final St. Patrick’s Day celebration this weekend before closing for good.

The reason? A 600% increase in insurance costs that has made it impossible for the family-owned bar to stay in business.

“We’ve hit our revenue goals every year, but nobody has an extra $70,000 just lying around,” said General Manager Kory Sheff, referring to the staggering spike in liquor liability insurance premiums.

The crisis stems from a 2017 South Carolina law requiring any business that sells liquor after 5 p.m. to carry at least $1 million in insurance coverage. While the law was originally designed to hold businesses accountable for serving visibly intoxicated patrons, industry experts say it has become a financial burden that’s crushing small businesses.

South Carolina Bar Closes — Bumpas Bar in Charleston has officially closed it’s doors due to high insurance costs in this state.

The Growing Cost of Staying Open

State Senator Ed Sutton has been a vocal advocate for legislative relief, warning that without immediate intervention, South Carolina’s historic cities—Charleston, Columbia, and Greenville—could see their local bar scenes overtaken by corporate chains.

“If your premium was $7,000 three years ago, it’s probably $70,000 now,” Sutton said. “Small businesses can’t absorb that. If we don’t act, Charleston will lose its soul.”

The South Carolina Senate was debating Senate Bill 244 (S.244), a sweeping tort reform bill that includes changes to liquor liability laws. The bill would offer some relief to small businesses by limiting outsized lawsuit damages and allowing bars to reduce their liability coverage if they take steps like:

Ending alcohol service at midnight
Completing state-approved alcohol server training

The bill also aimed to crack down on bars that knowingly serve intoxicated customers, while strengthening penalties for DUI convictions.

What Happened to S.244?

Despite bipartisan support for liquor liability reform, Senate Majority Leader Shane Massey (R-Edgefield) warned that an amendment added recently could derail the entire bill.

“We’re done. It’s over. There will be businesses closing now because of this,” Massey said Thursday after lawmakers failed to remove the amendment. For background, Massy is also an attorney that represents insurance companies, and a leader in his Baptist church, a religion that basically believes drinking alcohol is a sin.

The Legislators in the House, however, passed its own version of the bill with a 109-0 vote, sending it to the Senate for consideration. News out of Columbia is that Senator Massy is pressuring his fellow senators to vote on an amended bill. His influence appears to be working, as the votes have allegedly gone up from 19 to 28 votes for an amended bill, giving Massy almost 60% of what was in S.244. Senator Massy defends his stance, but to date, not one South Carolina bar or restaurant have supported any part of his bill. So, you have to ask yourself, if Massy’s version of his bill does not serve the small business owners, or South Carolina citizens, then who does S.244 and laws within it actually serve?

SC small businesses are being held hostage by skyrocketing insurance costs—and we can’t wait any longer!

Today, the House passed the Liquor Liability Bill (H.3497) to deliver real relief for bars, restaurants, and VFW posts across our state.

✅ Ends “joint and several”… pic.twitter.com/MaDyvKe8k6

— SC House GOP Caucus (@SCHouseGOP) March 6, 2025

The Impact S.244 Could Have on South Carolina Residents

The now stalled bill created serious disadvantages for ordinary South Carolinians:

Homeowners & Drivers: The bill weakens uninsured/underinsured motorist coverage and limits liability for property damage. Homeowners could face higher premiums and reduced insurance coverage without clear legal recourse.
Victims of Negligence: If an individual is injured due to corporate negligence or reckless behavior, they may be unable to recover full damages, especially punitive damages.
Consumers Fighting Insurance Companies: Insurance bad faith lawsuits would become much harder to win, even when companies wrongfully deny claims.

Meanwhile, Governor Henry McMaster has urged lawmakers to finalize a reform bill immediately, saying,

“Rising liquor liability costs are damaging our economy. We need a bill that balances accountability and fairness—one I can sign into law the minute it reaches my desk.”

To translate what Governor McMaster just said, to paraphrase he said, “Hurry up and get a bill to my desk you all can agree on.”

Who Wins and Who Loses?

While insurance companies and big businesses support the Massy bill for limiting liability payouts, accident victims and small businesses have raised concerns:

✅ Winners:

Big Insurance Companies – Would face fewer lawsuits and smaller payouts.
Corporate Chains – Could afford higher premiums while smaller competitors struggle.
Bars That Follow Strict Rules – Businesses that comply with safety measures may qualify for reduced insurance costs.

❌ Losers:

Small Business Owners – Without major relief, many local bars may not survive.
Accident Victims – The bill could make recovering damages more difficult in cases of drunk driving accidents.

What Happens Next?

With Bumpas Bar closing its doors and more Charleston and Columbia bars at risk, all eyes are on the South Carolina Senate. If lawmakers fail to reach a real compromise that helps small business and its citizens, liquor liability costs could continue to rise unchecked, leaving more beloved local establishments with no choice but to shut down. If that’s not what the Senate wants, they need to look only to the Legislature’s bill sent to the Senate that passed 109-0, and leave it alone and pass it just as their friends in the House did.

For now, Bumpas Bar has sung its last version of the song, “The Parting Glass,” in their final weekend of festivities, that offered locals their last chance to raise a pint before another Charleston or South Carolina institution disappears for good.