If a customer drinks too much and then causes an injury or property damage, the business that served them can be held legally responsible. Liquor liability insurance helps cover legal fees, settlements, and medical costs arising from these accidents.
In South Carolina, the law requires many businesses that sell alcohol to carry at least $1 million in liquor liability coverage. However, not all establishments follow this.
If you are injured by a drunk driver, knowing whether the establishment that served them had liquor liability insurance is a major part of your legal case. Without this insurance, you might win a lawsuit but find that the business has no money to pay the judgment. The legal team at David R. Price, Jr., P.A. helps victims hold these establishments accountable.
What Is Liquor Liability Insurance?
So, what is liquor liability insurance? It is a policy that protects businesses that sell, serve, or distribute alcohol. Standard general liability policies usually do not cover alcohol-related accidents, so a business must buy a separate liquor policy or an add-on to stay legal and protected.
Liquor liability insurance covers the “negligent” service of alcohol. Negligence happens when a server gives a drink to someone who is visibly intoxicated or underage. If that person leaves the bar and crashes into another car, the victim can sue the bar.
What Does Liquor Liability Insurance Cover?
A standard policy for liquor liability insurance covers several different types of costs:
- Third-Party Bodily Injury: This pays for the medical bills of someone hurt by a drunk person, including hospital stays, surgeries, and physical therapy.
- Property Damage: If a drunk driver crashes into your home or car, this insurance can help pay to repair or replace your property.
- Assault and Battery: Some policies include coverage for bar fights or situations where a drunk person attacks a bystander.
- Legal Defense Fees: The insurance covers lawyers’ fees to represent the business in court.
This insurance only covers the innocent people they hurt, not the drunk person themselves. If a drunk person wrecks their own car, the bar’s insurance will not pay for their repairs.
Who Needs Liquor Liability Coverage?
Under S.C. Code Ann. § 61-2-145, any business with a permit or license to sell liquor, beer, or wine for “on-premises” consumption after 5:00 p.m. must have a liquor liability policy of at least $1 million, unless they qualify for a lesser policy under the terms of a liquor liability risk mitigation program pursuant to the statute.
- Bars and Taverns: These are the most common businesses that face liquor liability claims.
- Restaurants: Even if food is the main focus, serving wine or beer creates a risk.
- Catering Companies: Businesses that serve alcohol at weddings or corporate events.
- Liquor Stores and Convenience Stores: In some cases, selling alcohol to a minor or a visibly intoxicated person can lead to liability even if the alcohol is consumed elsewhere.
How Much Does Liquor Liability Insurance Cost?
Policy cost varies based on several factors, such as:
- Total Alcohol Sales: A bar that makes 90 percent of its money from alcohol will pay more than a restaurant that makes more than 60% of its money from food.
- Location: High-traffic areas or areas with a history of many DUI arrests may have higher premiums.
- Claims History: If a business has been sued before for over-serving, its insurance will be much more expensive.
- Employee Training: Businesses that require staff to complete alcohol safety courses may receive lower rates.
What Are Dram Shop Laws and How Do They Impact Coverage?
“Dram shop” is a term for a place that sells alcohol. Dram shop laws are the rules that allow a victim to sue a business for the actions of a drunk customer.
Dram shop laws allow the victim to look at the “source” of the intoxication. If the bar kept pouring drinks for someone who couldn’t stand up straight, the bar is partly responsible for the crash that happened later.
In South Carolina, there isn’t one single “Dram Shop Act” for adults, but the courts follow the principle that knowingly selling alcohol to an intoxicated person is a violation of public policy. Specifically, S.C. Code Ann. § 61-4-580 prohibits the sale of beer or wine to an intoxicated person. If a bar breaks this law, they are considered “negligent per se.”
What Happens if a Business Doesn’t Have Liquor Liability Insurance?
If a business in South Carolina is required to have this insurance but fails to keep it, the Department of Revenue can take away its liquor license immediately.
From a victim’s perspective, a business without insurance is a major problem. If you are hit by a drunk driver who was over-served at a bar with no insurance, you might not be able to recover the money you need for your recovery.
In these instances, you may have to rely on your own “Underinsured Motorist” coverage or try to seize the business’s assets, which is a long and difficult process. This is why our team at David R. Price, JR., P.A. works hard to find all available insurance policies after an accident.
How a Greenville Liquor Liability Lawyer Can Help
At David R. Price, JR., P.A., our Greenville liquor liability lawyers look at the evidence to determine whether a business could be liable for putting profits over people. We help victims by:
- Investigating the Bar: We review security footage and sales receipts to determine how much the person drank.
- Finding Witnesses: We talk to other customers or servers who saw the person’s behavior.
- Reviewing the Policy: We make sure the business has the the insurance coverage required by South Carolina law.
- Filing the Claim: We handle all the paperwork and talk to the insurance companies so you can focus on getting better.
Contact Our Greenville Liquor Liability Lawyers Today
If you or a loved one has been injured in an accident involving alcohol, you deserve to know your rights. The legal team at David R. Price, JR., P.A. understands the local laws and the pain that these accidents cause. We are here to help you hold the right people responsible.
Contact us at 864-271-2636 for a free case evaluation. Start your path to recovery and get the answers you need about what liquor liability insurance is and how it applies to your case.