Liquor Liability Insurance for Myrtle Beach Businesses

What Is Liquor Liability Insurance?

Liquor liability insurance protects businesses that sell, serve, or distribute alcoholic beverages from claims arising when intoxicated patrons cause injury or property damage. If someone drinks at your establishment and later causes a car accident, injures another person, or damages property, your business can be held legally responsible. Liquor liability coverage pays for legal defense, settlements, and judgments resulting from these claims.

General liability insurance—the coverage most businesses rely on for injury and property damage claims—specifically excludes alcohol-related incidents. This exclusion exists because liquor liability represents a distinct and significant exposure that requires dedicated coverage. For Myrtle Beach bars, restaurants, nightclubs, and any business serving alcohol, liquor liability insurance isn't optional—it's essential for survival.

Why Myrtle Beach Businesses Need Liquor Liability Insurance

The Grand Strand's tourism economy runs on hospitality, and alcohol service is part of that experience. Millions of visitors come to Myrtle Beach annually to enjoy oceanfront restaurants, beach bars, nightclubs, and entertainment venues—most of which involve alcohol. This volume of alcohol service creates substantial liability exposure for local businesses.

• Your general liability policy won't cover alcohol-related claims — The liquor liability exclusion in standard GL policies is absolute. When an intoxicated patron causes harm, your general liability carrier will deny the claim entirely, leaving your business to face the lawsuit alone.


• South Carolina dram shop laws create direct liability — Under South Carolina law, businesses serving alcohol can be held liable for injuries and deaths caused by intoxicated patrons. This liability extends well beyond your premises—you can be sued for accidents that happen miles away, hours after the patron left.


• Tourism increases exposure significantly — Visitors on vacation often drink more than they would at home. Myrtle Beach businesses serve patrons who are unfamiliar with local roads, staying in hotels without personal transportation plans, and sometimes making poor decisions. This environment elevates liquor liability risk.


• Defense costs alone can devastate a business — Even if your business ultimately wins a liquor liability lawsuit, legal defense can cost tens of thousands of dollars. Liquor liability insurance covers these defense costs from the first dollar, protecting your cash flow while the case proceeds.


• A single incident can result in catastrophic damages — Drunk driving accidents frequently involve severe injuries or fatalities. Jury verdicts in these cases regularly exceed $1 million. Without adequate liquor liability coverage, a single claim can destroy a business.

What Does Liquor Liability Insurance Cover?

Liquor liability insurance responds to claims alleging your business bears responsibility for harm caused by an intoxicated person you served. Coverage applies whether you sell alcohol for on-premises consumption or off-premises consumption.

Third-Party Bodily Injury

When an intoxicated patron injures someone else—whether through a car accident, assault, or other incident—liquor liability covers claims brought by the injured party against your business. This is the most common and typically most expensive type of liquor liability claim. Myrtle Beach businesses serving alcohol face this exposure every night they're open.

Third-Party Property Damage

If an intoxicated patron damages someone else's property—crashing into a vehicle, damaging a storefront, or destroying personal property—your liquor liability coverage responds to claims from the property owner. These claims often accompany bodily injury claims in drunk driving incidents.

Legal Defense Costs

Liquor liability policies cover the cost of defending your business against covered claims, typically from the first dollar without applying to your policy limit. Given that liquor liability lawsuits often involve complex litigation, expert witnesses, and extended proceedings, defense cost coverage provides critical financial protection.

Assault and Battery by Intoxicated Patrons

When over-served patrons become aggressive and assault other customers or bystanders, your business may face liability. Some liquor liability policies include assault and battery coverage for incidents connected to alcohol service, though this coverage varies by carrier. Bars and nightclubs in North Myrtle Beach, Surfside Beach, and throughout the Grand Strand should verify this coverage is included.

Claims from Service to Minors

Serving alcohol to minors creates automatic liability exposure. If an underage patron obtains alcohol at your establishment and subsequently causes harm, your business faces both civil liability and potential criminal penalties. Liquor liability insurance covers the civil claims arising from service to minors.

Understanding South Carolina Dram Shop Laws

South Carolina's dram shop statute creates the legal framework that makes liquor liability insurance necessary for every business serving alcohol in the state. Understanding these laws helps Myrtle Beach business owners appreciate their exposure.

What the law says: South Carolina Code Section 61-2-145 allows injured parties to bring civil claims against alcohol retailers who sell or serve alcohol to persons who are intoxicated or under the legal drinking age, when that service is a proximate cause of the person's injuries.

Liability extends beyond your premises: You can be held responsible for accidents and injuries that occur after the patron leaves your establishment. If someone drinks at your Conway restaurant, drives away, and causes a fatal accident in Georgetown an hour later, your business can be sued.

Visible intoxication is the standard: Claims typically arise when evidence suggests a patron was visibly intoxicated when served. Training staff to recognize intoxication signs and implementing responsible service policies can reduce—but not eliminate—this exposure.

Multiple defendants are common: Liquor liability lawsuits often name multiple establishments a patron visited before an incident. Even if your business served the patron early in the evening, you may be included in litigation and forced to defend your service decisions.

How Much Does Liquor Liability Insurance Cost in South Carolina?

Liquor liability premiums depend primarily on your alcohol sales volume, business type, claims history, and selected coverage limits. Businesses with higher alcohol revenue pay more because they have greater exposure.

Factors affecting your liquor liability premium include:

• Annual alcohol sales — This is the primary rating factor for liquor liability. Higher alcohol revenue means more drinks served, more opportunities for over-service, and higher premiums.


• Type of establishment — Bars and nightclubs typically pay more than restaurants where alcohol accompanies food. Liquor stores face different exposure than on-premises establishments.


• Hours of operation — Late-night establishments serving alcohol into early morning hours face elevated exposure and higher premiums than restaurants closing at 10 PM.


• Entertainment and events — Live music, dancing, special events, and promotions that encourage drinking can increase premiums.


• Claims history — Prior liquor liability claims significantly impact pricing and may affect your ability to obtain coverage at all.


• Coverage limits selected — Higher limits cost more, but given the potential severity of liquor liability claims, adequate limits are essential.

Many South Carolina businesses find liquor liability surprisingly affordable—often a few thousand dollars annually for restaurants with moderate alcohol sales. However, rates vary dramatically between carriers and business types, making comparison shopping through an independent agency valuable.

Who Needs Liquor Liability Coverage in Myrtle Beach?

Any business selling or serving alcohol needs liquor liability insurance. This includes obvious candidates like bars and restaurants, but also businesses where alcohol service might seem incidental:

Restaurants and bars face the most obvious exposure. Whether you're a fine dining establishment in Pawleys Island, a sports bar in Conway, or a beach bar in Murrells Inlet, liquor liability coverage is mandatory.

Hotels and resorts with bars, restaurants, room service, minibars, or pool service need liquor liability as part of their hospitality insurance program.

Liquor stores and package stores selling alcohol for off-premises consumption face dram shop liability when customers subsequently cause harm. Coverage requirements differ from on-premises establishments but remain essential.

Breweries, wineries, and distilleries operating tasting rooms or selling directly to consumers need liquor liability coverage for their retail operations.

Caterers and event companies serving alcohol at weddings, corporate events, and private parties need coverage for each event where alcohol is provided.

Event venues hosting functions where alcohol is served may need their own liquor liability coverage depending on how events are structured.

Why Work with Moore & Associates for Liquor Liability Insurance?

Moore & Associates has served Myrtle Beach and the South Carolina coast since 1979. As an independent insurance agency, we work with multiple carriers offering liquor liability coverage—from standard markets to specialty insurers focusing on hospitality and entertainment risks. This access allows us to find coverage for businesses that might struggle to obtain protection through a single-carrier agency.

Liquor liability requirements vary by business type, and policy terms differ significantly between carriers. Some policies include assault and battery coverage while others exclude it. Some cover service to minors broadly while others impose restrictions. Our local agents review policy language to ensure you're getting coverage that actually protects your business—not just a certificate to satisfy your landlord.

Get a Liquor Liability Insurance Quote in Myrtle Beach, South Carolina

Our liquor liability insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.