Gov. Henry McMaster (R) has signed H. 3430 into law. Titled the Tort Reform and Liquor Liability law, its goal is to reform the state’s liability laws and address rising insurance costs for businesses. It also creates safety and insurance guidelines for businesses that serve alcohol.
“In March, we called on the General Assembly to take bold action on tort reform by finding a commonsense solution that provides accountability, certainty, and just compensation without damaging our economy,” said McMaster in a bill signing ceremony broadcast on SCETV. “Getting to this day was not easy, at times disagreements and obstacles seemed impossible to overcome, rhetoric was sharp, emotions ran hot, and tempers flared, but with a spirit and determination as indomitable as has ever been seen in this Capitol, our legislative leaders persevered.”
Jim Tunison, President and CEO of the Aiken Chamber of Commerce, told ABD this reform package was a top priority for businesses locally and across the state.
“I sat down with one gentleman who said his liquor liability was $3,200 a year, then when he had to go renew it, it increased to $32,000 a year,” he said. “So, when you’re talking that kind of money, and that’s a small business, people start to think, ‘How much longer am I going to be able to afford this? How are we going to make this work with staff?”
The new law preserves the required annual $1 million liquor liability or general liability insurance policy for businesses that serve alcohol for on-premises consumption after 5 p.m. However, it creates ways for businesses to mitigate their insurance requirements:
- Stop selling alcohol at midnight – $250,000 reduction
- Have all employees complete the alcohol server training within 60 days of employment – $100,000 reduction
- Have less than 40% of total sales be from alcohol – $100,000 reduction
- Use a digital forensic identification system between 12:00 AM and 4:00 AM – $100,000 reduction
- Be a 501(c)(3) organization or hosting an event where a special event license is obtained – $500,000 reduction
“That’s a huge thing for existing businesses and then for people who are thinking they want to do this. They see the financial burden of not only the staffing, normal business costs, but then you add the insurance into the mix,” said Tunison. “It just keeps us more competitive. It allows us to say, ‘Hey, we’re working for our businesses.’ Just creates a more pro-business environment.”
It also changes liability limits for incidents involving DUIs. The new law limits liability to 50% of the plaintiff’s damages. The previous law allowed up to 100% liability.
“Progress on important policy matters is often slow, but today is a recognition of a step toward a fair civil justice system,” said Senate Majority Leader Shane Massey, who joined McMaster for the signing. “The governor’s support was instrumental. If it had not been for him being willing to come out and take the steps to be in front of everybody on this issue, it would not have happened.”
Sara Hazzard, President and CEO of the South Carolina Manufacturers Alliance, said South Carolina’s legal system should lay a reliable foundation for economic development while preserving the state’s value of fairness.
Read the full legislation at https://www.scstatehouse.gov/sess126_2025-2026/bills/3430.htm.
