Columbia country bar says it will close next month without SC liquor liability reform
A pub in the Vista is set to shutter its business amid an ongoing debate regarding liquor liability that has sent insurance premiums through the roof.
Carolina Western Pub announced Friday on social media that the two-story country bar and restaurant at 920 Lady St. will close on May 17 unless lawmakers act quickly to rewrite the state’s liquor liability laws. The pub, which opened in the Vista in 2018 and pitches itself as a go-to spot for line dancing, says it’s been unable to secure an insurance policy for liquor liability as many insurance companies have fled the state behind a 2017 law.
Under the law, owners of bars, restaurants and other facilities that serve alcohol after 5 p.m. are facing a financial crisis as they are required to carry at least a $1 million dollar liability insurance policy. The premiums for such policies have soared, leading some industry leaders to plead with policymakers for relief.
Liquor liability insurance offers protection against claims related to alcohol-related accidents or incidents on their premises. For many businesses, the cost of insurance has become unsustainable, forcing them to consider drastic measures such as relocating to neighboring states with lower insurance costs or closing their doors altogether.
“Carolina Western Pub is not immune to the insurance crisis and without any changes or revisions to this law, we will be forced to close our doors,” the business said in a post on Facebook.
Premiums for Carolina Western Pub more than tripled, rising roughly from $7,000 in 2023 to $25,000 in 2024, according to the pub’s manager.
Notwithstanding the major increase, the manager — who did not want to be named — told The State his business has now been unable to even find an insurance company willing to cover the establishment as his current policy is approaching expiration.
Beyond that, the manager said restrictions on such policies are “absolutely insane,” adding that the business wouldn’t be allowed to have live music or serve alcohol after 11 p.m.
Several factors contribute to the escalating liquor liability insurance premiums in South Carolina, including high rates of alcohol-related accidents, the state’s liability laws and limited competition among insurers, Chris Long, an independent business insurance agent, told The State previously.
Currently, if a patron visits a bar early in the day and consumes a beer, visits another establishment for more beers and then a third establishment for even more drinks, and then, upon leaving, causes an accident, all three establishments, at best, are held equally liable for damages. At worst, the first bar is held liable.
South Carolina ranks among the top 10 states with the highest rate of drunk drivers, according to Forbes, which has led to higher premiums to reduce potential liabilities.
In addition, the legal landscape in S.C., including liability laws and court precedents have influenced insurers’ risk assessments and pricing strategies.
Further, a lack of competition among insurers in the state has resulted in higher premiums, as businesses have fewer options to choose from, limiting their ability to negotiate favorable rates.
In an effort to curb the pain felt by businesses, lawmakers recently passed a tort reform bill in the state Senate.
Under the proposed law, a defendant found to be 10% responsible would only have to pay 10% of the total damages awarded by the jury. But if that defendant was found to be more than 50% responsible, they could be held responsible for paying the full amount of “economic damages,” which include medical expenses and lost wages. So-called “non-economic damages,” awarded for emotional damage and punitive damages designed to punish the defendant, would still be split up proportionally.
“While we hope for a miracle solution, we also want to thank each one of you for supporting CWP over the last 6 plus years,” the Vista bar said in its Facebook post. “This is a difficult time for our CWP family but we look forward to seeing everyone over the next few weeks!”
This story was originally published April 12, 2025 at 11:28 AM.
