Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Dram Shop Liability topic
No spam. Unsubscribe anytime.
Hospitality owners warn of insurance market collapse for liquor liability; urge statutory changes and server training
Summary
Owners of restaurants, hotels and catering businesses told a Senate Judiciary subcommittee that a retreat by insurers from the liquor-liability market has made it difficult or impossible for many hospitality operators to obtain required coverage.
Owners of restaurants, hotels and catering businesses told a Senate Judiciary subcommittee that a retreat by insurers from the liquor-liability market has made it difficult or impossible for many hospitality operators to obtain required coverage.
Sean Blake, an attorney representing the Responsible Hospitality Reform Association and several Charleston-area businesses, said carriers are withdrawing from the market because losses on liquor-liability business are too high. "This is a crisis," Blake told the committee. "There is no market for [many] fine dining establishments." He urged legislative action or a regulatory remedy to restore market capacity.
Witnesses offered specific examples. Blake said one operator, Uptown Social, saw liquor-liability premiums rise from $57,000 in 2018 to $1.1 million in 2024 despite no claims. Another owner, Table 301, received quotes showing an 86 percent year‑over‑year increase and could not find umbrella coverage; several brokers reportedly refused to quote coverage.
To reduce insurers' perceived risk, the hospitality group asked lawmakers to consider: (1) removing a statutory exception that subjects alcohol sellers to modified comparative liability even for small shares of fault; (2) adopting a clearer, "bright-line" statutory standard for dram-shop liability similar to Indiana's requirement that servers have actual knowledge a patron was visibly intoxicated; and (3) a statewide mandate for 100 percent alcohol‑server training.
Opponents of broad changes cautioned that some draft language in S.244 could expand liability in ways that would further deter carriers. Senator sponsors and other witnesses urged quick stakeholder negotiations; both sides agreed server training and stronger DUI enforcement would improve public safety and could help the market.
No committee vote occurred. Several senators encouraged immediate stakeholder talks and asked the Department of Insurance to provide confidential market data to inform any legislative fix.
