Senate amends proposed boating‑insurance law to cover all vessels operating in South Carolina waters; bill carried over

Senate Bill 26, a proposal to require liability insurance for boats with motors above a horsepower threshold, was the subject of floor amendment and extended questioning Tuesday before sponsors carried the bill over for further refinement.

Senator Hembry (explaining the amendment) said the measure’s amendment expands the coverage from boats titled in South Carolina to any boat operating in South Carolina waters, arguing the change is a fairness issue for residents who face out‑of‑state boaters on local waters. The amendment also removed language that had created confusion between a violation for not carrying insurance and a misdemeanor for having a wreck without insurance; sponsors revised the wrongdoing provision so that failure to carry the required liability insurance is the misdemeanor.

Senators asked about minimum insurance limits, interactions with out‑of‑state insurance policies, and whether the proposed penalties (first offense $50–$250; second offense $250–$500; third offense $500–$1,000) would create a “target rich environment” for suits. Senator Martin and others requested additional input from insurance experts and asked how the law would treat out‑of‑state policies that do not meet South Carolina minimums; sponsors said they would work on language to avoid unfairly criminalizing visitors and to consider a possible carve‑out or parity approach for out‑of‑state operators.

After discussion and a pledge to consider a friendly amendment to address out‑of‑state policy parity, senators carried S 26 over for further work and committee consideration.