Liquor liability insurance costs hurt S.C. business owners
COLUMBIA, S.C. - Liquor liability insurance in South Carolina has become too expensive for many small businesses, forcing them to close or entirely change their business model.
Increases dating back to 2017 make bars, restaurants, and other licensed businesses serving alcohol after 5 p.m. must maintain a liquor liability insurance policy with total coverage of at least one million dollars.
WIS spoke to one business owner, Kimberly Gagliardi, who had to give up her dream business and pivot just to stay profitable.
“We had to make a change to stay afloat,” said Kimberly Gagliardi, Owner of Random Tap.
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Gagliardi is trying to keep her business, Random Tap, going, but her liquor liability insurance increasing drastically has made that a challenge.
She says her insurance has more than doubled in the last three years.
“We started talking about it and looking at the numbers, and we realized we weren’t making any money,” Gagliardi said, “We ended up putting some of our own personal money into the business, which you can’t sustain.”
Susan Cohen with the South Carolina Restaurant & Lodging Association says she’s seeing many Midlands businesses struggling.
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Instead of helping protect these businesses, she feels more of them will go away if the price tag on liquor liability insurance continues increasing.
“It’s really most sad when you see iconic restaurants suddenly can’t make it anymore,” Cohen said, “An expense like that, that triples to the point that we’ve seen is really something that they can’t maintain.”
Gagliardi’s bar is now turning into a breakfast spot, so she doesn’t have to close her doors for good.
“I just got a quote for the breakfast lunch place, and we’re going to save 80% on our insurance,” Gagliardi said.
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Now called Eatery 117, Gagliardi hopes to have her doors open again in May 2025.
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