State passes liability insurance requirements for service of alcohol

A new state law will require businesses serving booze to carry insurance to cover injuries from alcohol-related crimes

State passes liability insurance requirements for service of alcohol

Insurance News

By Ryan Smith

A new state law requires businesses that serve alcohol to carry liability insurance, according to a report from ABC affiliate News 4.

 South Carolina has passed legislation known as the Dram Shop bill. The new law means that businesses that sell alcohol will have to carry insurance specifically to pay expenses when people are injured, paralyzed or killed as a result of an alcohol-related crime.

The law was inspired by the case of Dillon, S.C., police officer Jacob Richardson. In 2014, he was responding to a report of a disturbance at the Dram Shop, an area night club, according to News 4. On the way there, he was hit by a drunk driver – a driver who had been overserved at that very club. Richardson was left paralyzed and suffered permanent brain damage.

“The night club had no insurance and passed their liability on to the city,” the South Carolina Association of Justice said in a statement. “Dillon has since been forced to pay over $1 million for Officer Richardson’s care and expenses, while the night club has not paid a dime.” 

The drunk driver, Jenni Hunt, was charged with felony DUI, according to News 4. The case against her is still pending.

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