Liquor liability insurance costs blamed for brewery closure
- SCCLR Newsletter
- 3 days ago
- 2 min read
By: Luna Hoit
Three Columbia-area breweries have closed their doors in the past month.
The Dales Biergarten & Bottle Shoppe in Springdale gave a reason – the cost of liquor liability insurance.
The beer garden announced on Facebook it would be closing Oct. 17, citing the steep cost of liquor liability insurance. Liquor liability insurance is legally required in South Carolina for any business that serves, sells or distributes alcohol in case a patron later causes injury or property damage while intoxicated.
“The current laws and insurance requirements are making it nearly impossible for small, independent venues to survive,” the post read.
Breweries face unique struggles regarding liquor liability, said Hank Davis, vice president of governmental affairs at the South Carolina Restaurant and Lodging Association. Their revenue has a higher reliance on alcohol sales, which creates a greater chance of alcohol-related incidents.
“A single overservice incident at a busy taproom or event hosted at a brewery can trigger large claims and attract suits naming multiple venues,” Davis said. “… Attorneys sometimes name many establishments in one complaint, which can be a driver of insurers’ caution in this space.”
With the breweries at risk any day, the premiums are steep. Insurance costs eat into profits and make it harder to stay afloat, businesses say.
Small businesses have banded together with the SC Venue Crisis movement to address the issue and raise awareness. The community advocates for liquor liability reform by legislators.
“What concerned me most was seeing independent venues, which are cornerstones of our communities, being forced into a position where they might have to shut down,” Asheton Reid, co-founder of SC Venue Crisis, said in a Greenville Journal article. “And not because they wanted to or weren’t successful, but because they couldn’t afford the cost of liquor liability insurance anymore.”
The closing of The Dales was mourned by locals on Facebook. Regulars shared their dismay and thanked the business for its impact on the Lexington County community.
Julia Kelleher Hudson commented, “’Where everybody knows your name’ doesn’t even cover the impact of this place to us,” a reference to the “Cheers” TV show theme song.
“To find places like this that were really family friendly local businesses that try to work in the community and do things is rare,” Hudson said later in an interview. Her son, Thomas, had his second and third birthday parties at The Dales.
Regardless of the advocacy by associations, businesses across the state and their loyal customers, the changes can only be made by the legislators. State Rep. Jay Kilmartin, R-Lexington County, owns the Melting Pot restaurant and understands the influence of liquor liability insurance on a business.
“They put their life savings into these places – they’ve worked these places for 20, 30 years – and they just go away,” Kilmartin said. “It’s so sad.”
There has been movement in the General Assembly in 2025, but the 2026 session still has potential.
“I do know the legislature says they want to fix something and have some reform,” Kilmartin said. “But in the meantime, the lawyers in the legislature are making millions of dollars off of these terrible laws.”
The Dales Biergarten, located on Platt Springs Road in Springdale, closed Oct. 17. Photo by Luna Hiott/Carolina Reporter