South Carolina Alcohol Businesses Gain New Options for Liquor Liability Insurance Mitigation

Viva Beverage Law has announced updated guidance to help South Carolina alcohol businesses understand liquor liability insurance requirements and identify new opportunities for coverage mitigation. As regulations continue to evolve, the firm is expanding its educational outreach to help retailers, restaurants, manufacturers, and hospitality businesses remain compliant with state law while identifying potential cost-saving measures tied to coverage obligations.

Under South Carolina Code Section 61-2-145, a business licensed or permitted to sell beer, wine, or liquor for on-premises consumption and that remains open after 5 p.m. must maintain a liquor liability insurance policy, or a general liability policy with a liquor liability endorsement, with total coverage of at least $1 million during the period of the biennial permit or license. This requirement applies to numerous establishments across the state's hospitality sector.

What makes this guidance particularly important for business owners is the identification of specific mitigation factors that could significantly reduce insurance costs. According to the South Carolina Department of Revenue, businesses that implement certain safety measures may reduce their required annual aggregate limit by $100,000 to $500,000 depending on which criteria are met. These mitigation factors include stopping alcohol service by midnight, requiring employees to complete an approved alcohol server training program, keeping alcohol sales below 40 percent of total revenue, or using a qualifying forensic digital ID verification system between the hours of midnight and 4:00 am.

Beginning November 1, 2025, new applicants and renewing licensees will be able to submit mitigation documentation through MyDORWAY. Qualifying reductions may take effect for liquor liability policies beginning January 1, 2026. Coverage must be at least $300,000 for permanent licensees and $150,000 for special event licensees once mitigation factors are applied.

The timing of this guidance is crucial as many businesses prepare for license renewals and budget planning for the coming year. For small and medium-sized establishments, the potential savings from implementing mitigation measures could represent significant operational relief. The hospitality industry, which has faced numerous challenges in recent years, now has clearer pathways to reduce one of their significant regulatory compliance costs.

Lauren Acquaviva, founder of Viva Beverage Law, brings specific expertise to this area, having spent six years litigating alcohol licensing and tax matters at the South Carolina Department of Revenue. This experience gives the firm insight into regulatory decisions and licensing issues that directly affect how businesses interpret and implement these requirements.

The firm works with breweries, distilleries, restaurants, retailers, wholesalers, and importers on a range of alcohol law matters, making this guidance particularly relevant across the entire alcohol supply chain in South Carolina. Businesses seeking additional information about these regulatory changes can find resources through the firm's website at https://www.vivabeveragelaw.com.

This development represents more than just regulatory compliance information—it provides practical financial relief options for businesses navigating the complex landscape of alcohol service regulations. As insurance costs continue to rise across industries, having clear, actionable strategies to reduce mandatory coverage requirements while maintaining safety standards offers meaningful operational advantages for South Carolina's hospitality sector.