Local Cue Bar Ceases Liquor Sales over Mounting Liability Insurance Costs

Rising Costs of Liquor Liability Insurance

Greenville, SC

In a step forced by economic pressures, a Greenville bar that’s been an institution for over a decade has ceased selling alcohol. This change results from a state law that has severely impacted locally owned establishments throughout South Carolina. Leah Vaughan, owner and co-founder of Local Cue, cites overwhelming insurance costs emanating from a 2017 “liquor liability” law as the reason for this drastic shift in business operations.

Expressing concerns about the broader industry, Vaughan states, “I’m hoping that by staying open and doing this enough attention is put on the subject of liquor liability so that it will help all of us locally owned bars. We want people to go out and have a good time. We want people to be able to enjoy themselves. Now, that is going to change a lot“

Liquor Liability Law’s Impact

The South Carolina General Assembly, in 2017, passed a law requiring every business selling alcohol after 5 pm to carry liquor liability insurance worth at least $1 million. This policy change significantly weighed on Local Cue, with insurance costs escalating from an initial $60,0000 annual payout to a staggering $341,000.

Faced with these soaring expenses, Vaughan described the decision to stop alcohol sales as one of the toughest she’s ever made as a business owner. A post from the Local Cue Facebook page regarding this development has generated hundreds of emotional reactions, shares, and comments from the community.

Reshaping Business and Staff Structure

Aside from losing a vital revenue stream, Vaughan explains that this predicament has necessitated restructuring how Local Cue operates, including staff lay-offs and reduction in benefits for remaining employees. Describing her staff as family, Vaughan expressed tremendous sadness at being compelled to let go of some employees due to the law’s financial consequences.

Wider Implications for Local Bars in South Carolina

Christopher Smith, Executive Director of the South Carolina Bar and Taverns Association, observes that this law’s impacts extend beyond just one establishment. Local bars across the state are either shuttering operations or making sizable adjustments to contend with the prohibitive cost of insurance.

The Blind Horse Saloon, Smiley’s Acoustic Cafe, and Rotties 221 Biergarten serve as severe examples, with each of these establishments citing similar reasons for closing down.

Seeking Revision to the Liquor Liability Law

The South Carolina Senate is considering Senate Bill 533, also known as the “S.C. Justice Act,” which amends the liquor liability law to account for the percentage of fault in an alcohol-related incident. This modification would spread the level of responsibility across multiple parties and potentially reduce the liability of bars. Christopher Smith has urged supporters to lobby their local representatives about the bill in hopes of relieving the pressures on locally owned bars.

Smith warns that without legislative action, the survival of fit local bars is uncertain, with far-reaching effects on employment, tax revenues, and the local economy. He argues, “It affects jobs, it affects the economy, and it affects tax revenues. Ultimately, what’s going to happen is we’re going to only have chains in South Carolina that’ll sell alcohol. That’s not going to help keep people employed.”