South Carolina has introduced updated liquor liability insurance requirements that affect many businesses serving beer, wine, or liquor after 5 p.m. If you hold a qualifying license, you must carry an aggregate liquor liability policy of at least $1 million—or meet approved mitigation factors that reduce that limit. These changes apply to restaurants, bars, breweries, wineries, distilleries, special event hosts, and other alcohol licensees who serve alcohol for on-premises consumption after 5 p.m. If you’re unsure how this new regulation applies to your business, our South Carolina liquor liability insurance team can walk you through the rules so you understand what is expected.
Who Must Carry Liquor Liability Insurance
The updated law applies to a wide range of businesses and organizations. If you have an on-premises beer and wine license, a brewpub license, a liquor-by-the-drink license, a nonprofit private club license, a special event permit, or a production license with on-site sales, you must comply with the insurance rules. If your doors are open after 5 p.m. and alcohol is served for on-premises consumption, you must carry the required aggregate coverage during the full licensing period.
To satisfy the requirement, the licensee must be listed as the insured, not an additional insured, and the South Carolina Department of Revenue (SCDOR) must be listed as the certificate holder on the ACORD 25 form (also known as a Certificate of Insurance or COI). This allows the SCDOR to receive notice of any policy change or cancellation.
How Mitigation Factors Can Reduce Your Coverage Limit
Although the default aggregate limit is $1 million, certain businesses may qualify for reductions. These reductions apply only if you meet specific criteria and provide the necessary documentation to the SCDOR. Examples include:
- Closing by midnight
- Having all alcohol-serving employees complete SCDOR-approved server training
- Demonstrating that alcohol sales make up less than 40% of your total revenue
- Using a qualifying forensic digital ID system during late-night hours
- Holding nonprofit 501(c)(3) status
- Operating a single special event
Each factor has its own documentation requirements, such as POS records, operating hours, training certificates, or proof of ID technology. These reductions cannot lower permanent license coverage below $300,000 or special event coverage below $150,000. In all cases, per-occurrence limits must be at least half of the aggregate limit.
When And How You Can Submit Mitigation Requests
Current licensees may begin submitting mitigation information to the SCDOR starting November 1, 2025, through their MyDORWAY account. Renewing licensees will provide this information during the renewal process, while new applicants will submit it during the initial application. Special event applicants do not need to apply for the single-event mitigation factor, as it is applied automatically, but they must apply for any others. Approved businesses can start applying reduced insurance limits beginning January 1, 2026.
How The New Rules Affect Your Business
For many business owners, the most important part of the new law is timing. You will need to have proof of the correct coverage in place before you operate after 5 p.m. Without proper documentation, your license may be delayed or restricted. Submitting accurate information, keeping records up to date, and confirming that your policy meets the new structure are key steps in meeting these requirements and complying with all of South Carolina’s beverage laws.
Get Help With The New Requirements
If you have questions about insurance requirements, mitigation eligibility, or how to submit your documents, we can help you sort through the new rules and apply them to your business. At the end of the day, this law is about keeping your operations compliant and avoiding unexpected licensing issues. For guidance through the process, reach out to us at Viva Beverage Law to speak with our attorney. Call or message us today to request a consultation.