Bars are getting slammed by liquor liability. An SC dive is shifting operations to avoid high costs.
- SCCLR Newsletter
- Aug 4
- 2 min read
CHARLESTON — Less than six months after it shuttered, a beloved neighborhood bar on upper Meeting Street is finding new life, without pouring a single drink itself.
Local 616, a bar once known for its affordable drinks, eclectic vibe and World Cup watch parties in a downtown strip center, is now operating as Meeting at 616, a private event space as a way to get around the sky-high costs of liquor liability insurance.
Owner Dwayne Mitchell, a longtime veteran of Charleston’s food and beverage scene, closed the bar after 12 years due to the soaring cost of liquor liability insurance — a burden that has plagued South Carolina establishments in recent years following lawsuits related to drunk-driving by patrons.
With the lease for his location in place through 2028, Mitchell said he had to be creative on how to keep the doors open. His rates start at $275 an hour with a four-hour minimum on weekdays and an increase on the weekends.
“A lot of people didn’t want to see this place close and I knew I wasn’t going out like that,” Mitchell said.
His solution is to shift liquor liability away from the business and onto event hosts.
By renting the venue for private events that serve — not sell — alcohol, Mitchell avoids the costly liquor liability insurance premiums.
“Now it’s like a house party at Dwayne’s house. You have to bring everything, but I’ll unlock the door for you,” Mitchell said.
Despite recent relief for bar owners under state law that limits the percentage of damages bars and restaurants are liable for in drunk driving cases, a rash of lawsuits over the past several years pushed up liability insurance rates by more than 200 percent, according to bar owners across the state.
Additionally, establishments serving alcohol after 5 p.m. in South Carolina must carry a minimum of $1 million in liquor liability coverage, a requirement that’s been in place since 2017.
At Meeting at 616, hosts must purchase one-day event insurance based on whether alcohol is self-served or handled by third-party staffing company.
“That’s pretty creative on his part,” said Bill Silcox, chief operations officer at C.T. Lowndes & Company Insurance agency.
Silcox said his Mount Pleasant-based office has been getting more requests for quotes regarding event insurance following litigation against venues for alcohol-related incidents.
“We're seeing more venues requiring it. Even if a venue has liquor liability, they could still require that the person putting the party on have their own coverage,” he said.
The cost of insuring a single event ranges depending on whether alcohol will be available, the number of guests and other factors.
“Each company has different underwriting guidelines,” Silcox said. “But that’s a really creative (pivot) on (Mitchell’s) part.”
Mitchell said a recent event was able to purchase liability insurance for around $150 for $1 million of coverage. Meeting at 616, which has a maximum capacity of 99 guests, includes a suggested agent to contact for rates in its rental contracts.
