Latest news with #EdSutton
Yahoo
19-02-2025
- Business
- Yahoo
Rising insurance costs are forcing SC bars to close and lawmakers are rushing to find a fix
The familiar refrain from Semisonic's hit 'Closing Time' has long been a last-call anthem for bars, but in South Carolina, many establishments fear they'll be closing for good. Skyrocketing liquor liability insurance premiums, driven by a 2017 requiring businesses serving alcohol after 5 p.m. to carry $1 million in liability coverage are forcing some bars and restaurants to shut their doors permanently. A near-record number of Americans are grappling with $1,000 car payments and many drivers can't keep up. Here are 3 ways to stay ahead 5 ways to boost your net worth now — easily up your money game without altering your day-to-day life Home prices in America could fly through the roof in 2025 — here's the big reason why and how to take full advantage (with as little as $10) The Brew Cellar, a beloved establishment in Charleston, announced its closure after 11 years in business, citing rising insurance costs as the primary reason. "We made it through COVID, and we're getting taken down by laws 11 years after being open. It's like a death in the family, honestly," owner Ryan Hendrick told ABC 4 News. State lawmakers are pushing for legislative changes to help restaurants and bars keep their doors open. State Senator Ed Sutton said he believes a solution can be found. 'We got insurance companies on one side fighting, and we got trial attorneys on the other side fighting with each other," he said. "In the middle, the person getting the short of the stick is that small business owner," he told ABC 4 News. Why are the rates soaring now? The issue stems from the 2017 law requiring all businesses that serve alcohol after 5:00 p.m. to carry at least $1 million in liquor liability coverage. The legislation was intended to ensure that victims of alcohol-related incidents could receive compensation. However, it has also driven up insurance costs for business owners. Many insurance companies have either exited the South Carolina market or raised their rates, making it challenging for small establishments to afford the required coverage. Why is the impact hitting businesses now? Most insurance policies renew annually, meaning rate hikes happen gradually, not all at once. As insurers reassessed risk and adjusted pricing over time, premiums steadily climbed — until they became unsustainable for many bars and restaurants. Zach Dennis, owner of the bar Peacock and an insurance agent, has seen both sides of the issue. "I have clients right now whose renewals are coming through that, for the first time, have to answer the question: Do I renew my insurance, or do I close my doors? Because I cannot continue to make money or operate in this economy." Dennis shared. Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead In response to this crisis, Sutton has introduced a bill to amend the current liquor liability laws. The proposed changes would refine liability standards and shift the burden of proof to focus on clear, observable signs of intoxication rather than imposing blanket liability. This could reduce financial risks for responsible establishments while still allowing victims to seek damages. Sutton said he hopes this will lead to lower insurance rates for businesses. "We need to land in a spot where rates aren't $100,000 for a liquor liability premium, but also allow for victims of operators that overserved, don't check IDs, or don't do the proper thing for those victims to be compensated,' Sutton said, emphasizing the need for balance. 'And I absolutely believe we can get there." Another proposal seeks to reduce the mandatory insurance coverage from $1 million to $250,000 for establishments that implement specific risk mitigation measures, such as comprehensive server training programs. Sutton's bill has gained support from the hospitality industry and business community, who see it as essential to preventing closures and preserving South Carolina's vibrant culinary scene. He plans to have the legislation on the governor's desk by May. However, for some businesses, the changes may come too late. The Brew Cellar plans to close its doors on February 17, just two days after its 11th anniversary. Hendrick urged patrons to support their local establishments before it's too late, "We're not going to beg for people to come through to keep our doors open, but go support your favorite places; they need it." I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Is your savings account struggling to keep up with soaring grocery prices? Here's how 2 minutes can earn you 9X the US national average — with no monthly fees One dozen eggs in America now costs $4.15 — and $14.35 for a pound of sirloin steak. Both record highs. 3 simple ways to protect your wealth in 2025 This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
06-02-2025
- Business
- Yahoo
South Carolina lawmakers to discuss legislation addressing rising liquor liability rates
COLUMBIA, S.C. (WCBD) — State lawmakers are taking initial steps to address concerns about rising liquor liability rates, as two bills are being discussed by a group of senators on Thursday in Columbia. One of the bills that aims to address this issue is S. 184, which would change South Carolina's dram shop liability laws, and how the basis of liability is determined. State Sen. Ed Sutton (D), who represents parts of Downtown Charleston, West Ashley and James Island is one of the sponsors of the bill. He said the legislation is modeled after the state of Alabama's Dram Shop Act. 'That bill was successful in lowering the insurance premiums there so I'm glad we're looking at what's worked elsewhere and emulating that strategy here,' Sutton explained. Rising insurance rates have been an issue for restaurant and bar owners over the last few years, with some saying their premiums have more than doubled when they came up for renewal in 2024. This came after a state law was passed in 2017 that required establishments serving alcohol past 5 p.m. to carry a policy with a total coverage of at least $1 million. The change was made to ensure victims of alcohol-related incidents received proper compensation, but many in the industry say it has led to insurance companies pulling out of the state and skyrocketing rates — ultimately causing restaurant and bar closures. Sen. Sutton said he hears concerns about the rising liquor liability insurance rates from people in his district daily. 'In the last three years, the climb in premiums has been astronomical and it's quite frankly been very unfair. We're seeing most recently in the region is Brew Cellar and Local 616 closing out — there's been a lot more,' he said. Sen. Sutton explained that it is a priority for him to take steps that can help lower the rates, and he believes S. 184 will help accomplish that. 'This issue because it's been ignored and because people were unwilling to compromise is putting small businesses out of business,' he said. 'And I think that's incredibly unfair — so this is a top priority for my district, so it's a top priority for me.' S. 184 will be discussed on Thursday during a Senate Judiciary Subcommittee meeting, as well as S. 244. Sen. Sutton believes S. 244 will draw more controversy than the bill he's sponsoring because it involves tort reform. In the past, victim advocates have discouraged making changes to tort laws that could potentially impact victims. However, Sutton said he believes lawmakers can help find a balance when making policy changes that lower liquor liability rates while also continuing to protect victims. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
