South Carolina Alcohol Businesses Gain New Options for Liquor Liability Insurance Mitigation
TL;DR
Viva Beverage Law's guidance helps South Carolina alcohol businesses reduce required liquor liability insurance coverage by up to $500,000 through specific mitigation strategies.
South Carolina businesses selling alcohol after 5 p.m. must maintain $1 million liquor liability coverage, but can reduce it by implementing measures like server training or early closing.
These updated insurance guidelines help South Carolina businesses operate more safely and responsibly while reducing financial burdens, creating a better environment for communities and patrons.
South Carolina alcohol businesses can now submit mitigation documentation through MyDORWAY starting November 2025, potentially lowering insurance requirements by implementing specific operational changes.
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Viva Beverage Law has released updated guidance to help South Carolina alcohol businesses navigate liquor liability insurance requirements and identify opportunities for coverage mitigation. The firm's educational outreach targets retailers, restaurants, manufacturers, and hospitality businesses seeking to maintain compliance with state law while potentially reducing insurance costs.
Under South Carolina Code Section 61-2-145, businesses licensed to sell beer, wine, or liquor for on-premises consumption that remain open after 5 p.m. must maintain a liquor liability insurance policy or general liability policy with liquor liability endorsement. The required coverage is at least $1 million during the period of the biennial permit or license. The legal details of this requirement are documented at https://law.justia.com/codes/south-carolina/2022/title-61/chapter-2/section-61-2-145/.
Businesses can reduce this required annual aggregate limit by implementing specific mitigation measures. These include stopping alcohol service by midnight, requiring employees to complete an approved alcohol server training program, keeping alcohol sales below 40 percent of total revenue, or using a qualifying forensic digital ID verification system between midnight and 4:00 a.m. Depending on which criteria are met, the reduction can range from $100,000 to $500,000.
Beginning November 1, 2025, new applicants and renewing licensees will be able to submit mitigation documentation through the state's online portal at https://mydorway.dor.sc.gov/. Qualifying reductions may take effect for liquor liability policies beginning January 1, 2026. The South Carolina Department of Revenue provides additional regulatory information at https://dor.sc.gov/.
For businesses that qualify for mitigation, coverage requirements drop to at least $300,000 for permanent licensees and $150,000 for special event licensees. This represents significant potential savings for establishments that implement the required measures.
The importance of this guidance extends beyond cost reduction. Proper compliance helps businesses avoid penalties and maintain their operating licenses. The evolving regulatory landscape requires businesses to stay informed about documentation procedures and eligibility criteria. The mitigation options recognize businesses that implement responsible alcohol service practices while providing financial incentives for compliance.
Viva Beverage Law founder Lauren Acquaviva brings six years of experience litigating alcohol licensing and tax matters at the South Carolina Department of Revenue to this guidance. This background provides insight into regulatory decisions and licensing issues that affect the alcohol industry statewide. The firm works with breweries, distilleries, restaurants, retailers, wholesalers, and importers on various alcohol law matters.
The updated guidance comes as businesses prepare for the November 2025 implementation of new documentation procedures. Establishments seeking to reduce their insurance obligations must plan ahead to implement mitigation measures and gather required documentation. The financial implications are substantial, particularly for smaller businesses operating with tight margins in the hospitality sector.
Curated from 24-7 Press Release
