By Al Dozier
Local lawmakers say the increasing impact of rising insurance rates on restaurants and nightclubs is creating a crisis in the business community.
It’s often called “liquor liability.”
But Rep. Micah Caskey, R-Lexington, said it’s not going to be easy to fix the problem.
“It’s complicated,” said Caskey, a member of a legislative committee that is studying the problem. “We’ve had a number of meetings.”
But Caskey said so far the committee hasn’t put together a solution to a problem with so many different issues. He said it will take a lot more work, but addressing the problem “is a priority” for the legislature during the upcoming weeks.
The House bill currently under consideration aims to encourage more insurance companies to provide liquor liability coverage. The proposal would lower insurance mandates for bars and restaurants meeting specific criteria, such as nonprofit status or businesses that close by 10 p.m.
Rep. Jay Kilmartin of Irmo, who turned in his license to sell alcoholic beverages at his retail businesses because of the cost of liability insurance, describes the current situation as “a mess.”
Kilmartin said his own business insurance rates went up from $1,500 to $28,000 a year.
But he believes a solution is coming. Legislation is on the table.
He said a bill has been filed in the Senate with a judiciary subcommittee chaired by Sen. Michael Johnson, a Republican representing York and Lancaster counties.
While the legislators are trying to find a solution to the problem, Kilmartin said they helped cause the problem. He said many lawmakers are attorneys who stand to gain with all of the litigation on insurance settlements.
Joining a group known as the S.C. Venue Crisis, Kilmartin became a vocal advocate for many restaurant and bar owners he says are now facing a crisis.
The Venue Crisis web site identifies several businesses throughout the state that had to close because of the insurance rates, and outlines their complaints.
According to a post on the site by Old Rock Quarry Winery in Enoree, the business has enjoyed an incredible journey with its cuisines and local food trucks and music performances.
“But unfortunately, the one thing that we, along with numerous other venues through South Carolina, are not surviving is the current liquor liability insurance crisis our state lawmakers have allowed to rage our state. Therefore it is with a heavy heart that we announce that Aug. 17 will be our last musical event and out last day for all onsite consumption.”
