Business owners concerned about proposed pause in S.C. liquor liability law

ROCK HILL, S.C. - South Carolina lawmakers voted last week to pause the state’s liquor liability law that took effect last year, and some small business owners think the move will hurt their business.

Since the state’s new liquor liability law went into effect earlier this year, people have shared stories about the friends they’ve met and memories they’ve made at some of their favorite spots across York, Chester, and Lancaster counties. Now, they’re worried all of that could be at risk.

The new Tort Reform and Liquor Liability law in South Carolina aims to lower insurance costs for business owners, but owners say they’re still feeling the squeeze. The law took effect on Jan. 1, but businesses like Hoppin’ Rock Hill and others say insurance premium costs have been rising for years.

Joe Gulledge is the owner of Hoppin’ Rock Hill, and is South Carolina’s Bar and Tavern Association President.

“Wanted to try to open up something that provided people a great space to go to with live music and a lot of different entertainment options,” Gulledge said.

He was a teacher in Rock Hill for years before opening Hoppin’ a few years ago, with hopes of bringing the community together.

Benford Brewing’s owner Bryan O’Neal says he opened up for the same reason -- to create a space in Lancaster for friends to meet.

“Our customers are our friends and even this weekend, messing around the farm and cleaning up, people still come by here,” says O’Neal.

At the start of 2026, South Carolina required businesses serving alcohol to carry a one million liquor liability insurance policy. As a result of rising insurance costs, Hoppin’ says their premiums jumped 130%.

Benford Brewing closed its doors in March because the options to lower the cost weren’t working.

“Yeah, we’re at zero revenue besides the diversification I’ve done with the sawmill service and epoxy tables,” O’Neal said.

Last week, South Carolina senators voted to temporarily suspend the liquor liability law for the fiscal year -- which runs from July 1, 2026 to June 30, 2027.

These business owners shared more about what they believe a solution could look like.

“They could restructure something that makes sense and a temporary one year suspension is not the answer,” O’Neal said.

O’Neal believes changing the law’s wording could make a difference. He says it’s a change he’s seen help other states that faced similar situations — changing “knowingly intoxicated” to “visibly intoxicated.”

“For whatever reason, when that came through last year, that’s what the original bill had. It was changed to ‘knowingly intoxicated’, and the insurance companies, you know, they’re not changing anything,” Gulledge said.

Both of these owners don’t think the law’s temporary change will help small business owners or communities across the state.

“Currently the rates that we’ve been receiving, you’d have to sell approximately 40 beers a day, six days a week, making approximately $3 of profit just to pay for the policy and -- that’s not sustainable,” O’Neal said.

“Every small business is doing everything they can to survive right now. If you think prices are too high, I can promise you that no one is making any money. Everyone is doing everything they can just to stay afloat,” Gulledge said.

The change that was voted through by state senators will need to be approved by the state House.