Why Liquor Liability Insurance is so Hard to Get in South Carolina

By Brad Davis, CIC (February 9, 2026)
Davis Insurance Associates – Myrtle Beach, South Carolina

If you own a bar, restaurant, brewery, or any business that serves alcohol in South Carolina, you’ve probably discovered this the hard way: liquor liability insurance is difficult to find, expensive, and often comes with strict requirements.

At Davis Insurance Associates, we hear this all the time from business owners in Myrtle Beach, Conway, North Myrtle Beach, and across the Grand Strand:

       “Why won’t anyone write liquor liability?”
       “Why did my carrier decline me?”
       “Why did my premium double?”

The short answer: South Carolina is one of the tougher states in the country for liquor liability insurance.
The longer answer, and what you can do about it, is below.

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What Is Liquor Liability Insurance?

Liquor liability insurance protects a business if it is held legally responsible for damages caused by someone who was served alcohol at their establishment.

This can include claims involving:

• Drunk driving accidents

• Assaults or fights

• Injuries or deaths caused by intoxicated patrons

• Property damage after alcohol service

In South Carolina, these claims can be severe, costly, and difficult to defend, which is why insurers are so cautious.

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Why Liquor Liability Insurance Is So Hard to Get in South Carolina

1. South Carolina Has Unfavorable Liquor Liability Laws

South Carolina follows strict dram shop laws, meaning businesses that serve alcohol can be held liable even if they did not intentionally over-serve a patron.

From an insurance carrier’s perspective:

• Juries can be unpredictable

• Settlements and verdicts can be large

• Defense costs alone can be substantial

Many national insurance companies simply decide the risk isn’t worth it and exit the state entirely.

2. Large Jury Verdicts Have Made Insurers Pull Back

Over the years, South Carolina has seen high-dollar liquor liability verdicts, especially involving auto accidents and fatalities.

The result?

• Fewer carriers willing to write coverage

• Higher premiums for those that remain

• More underwriting restrictions

This affects even well-run restaurants and bars with clean loss histories.

3. Myrtle Beach and the Grand Strand Are Considered High Risk

Tourism plays a big role here.

Areas like Myrtle Beach are viewed as higher risk because of:

• Heavy seasonal traffic

• Late-night alcohol exposure

• Vacationers unfamiliar with local roads

• Increased DUI-related claims

Even responsible establishments can be grouped into a higher-risk category simply because of location and volume.

4. One Claim Can Shut the Door With Many Carriers

Liquor liability underwriting in South Carolina is unforgiving.

If a business has:

• A prior liquor liability claim

• A DUI-related incident

• An assault or altercation claim

…it may be declined by multiple carriers, sometimes for several years.

This is one of the biggest reasons business owners struggle to find options after a single loss.

5. Carriers Require Strict Controls (and Proof)

Some insurers that do offer liquor liability in SC require:

• Written alcohol service procedures

• Mandatory bartender/server training (TIPS or equivalent)

• No drink specials or limited drink specials

• No late-night hours (or earlier closing times)

• Security staff for certain operations

Without these controls, coverage may be:

• Declined

• Quoted at a very high premium

• Offered with low limits or exclusions

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Why Liquor Liability Insurance in SC Is So Expensive

When options are limited, pricing goes up.

In South Carolina:

• Supply of carriers is low

• Demand is high

• Claim severity is significant

This often results in:

• Higher minimum premiums

• Separate liquor liability policies (not bundled)

• Lower available limits than other states

Unfortunately, this is the reality – even for good operators.

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What Business Owners Can Do to Improve Their Chances

While you can’t change South Carolina law, you can improve how your business looks to underwriters.

Best practices include:

• Formal alcohol service training for all staff

• Documented ID-checking procedures

• Incident logs and refusal-of-service policies

• Proper staffing and security controls

• Working with an independent insurance agency that knows the SC market

This last point matters more than most people realize.

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Why Working With a Local Independent Agency Matters

Not every insurance agent understands liquor liability in South Carolina.

At Davis Insurance Associates, we:

• Know which carriers are still writing liquor liability in SC

• Understand how underwriters view Myrtle Beach and coastal risks

• Help businesses position themselves before submission

• Set realistic expectations on pricing, limits, and requirements

Sometimes the difference between a decline and an approval is how the risk is presented.

You can read more about Restaurant Insurance or Start A Quote from our website.

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Final Thoughts

Liquor liability insurance is hard to get in South Carolina because:

• The laws favor injured parties

• Claims are expensive and severe

• Many carriers have left the state

• Coastal and tourist areas are considered higher risk

But “hard to get” does not mean “impossible.”

With the right preparation, expectations, and guidance, many bars and restaurants can still secure coverage—even in a challenging market like South Carolina.

If you serve alcohol and are struggling to find liquor liability insurance in Myrtle Beach or the surrounding area, working with a knowledgeable local agency can make all the difference.

Disclaimer: This content is for general information only and is not legal or insurance advice. Coverage varies by carrier and risk. Always review your policy and consult a licensed insurance professional.