Senate subcommittee advances dram‑shop, tort reforms as insurers, restaurants debate insurance access and costs

Senator Sharon Johnson, chair of the Senate Judiciary subcommittee, on Jan. 30 led a session that advanced two related bills — S.184, a dram‑shop bill, and S.244, a broader tort and insurance measure — after extended testimony from restaurant industry representatives, committee members and Michael Wise, director of the South Carolina Department of Insurance.

The measures are intended to change how alcohol‑related civil liability is handled and to address insurers’ cited concerns about unpredictability in the liquor‑liability market. S.184 would codify elements of dram‑shop law and narrow the circumstances under which a licensee could be held liable; S.244 is broader and would change joint and several liability, server‑training requirements and other liability rules. Both bills were reported favorably out of the subcommittee for consideration by the full committee, with members saying they expect substantial floor amendments.

Why it matters: restaurant and hospitality groups say rising premiums and shrinking insurer participation threaten access to liquor‑liability coverage for many operators; insurers and actuaries say the market faces higher claim severity and uncertainty that make underwriting the line difficult. The bills aim to reduce the legal exposure that businesses say is driving rate increases; opponents and committee members pressed for data showing whether legal changes will actually restore market capacity or lower premiums.

Most important facts

- Susan Cohen, representing the restaurant/hospitality association, said the industry lacks guarantees that legal changes will curb premium increases. “I…