Question: Can SC Municipal Insurance and Risk Financing Fund members purchase standalone policies that cover alcohol liability for annual events?
Answer: No. Standalone or monoline liquor liability policies are no longer available in South Carolina.
SC Code Section 61-2-145 now requires any establishment with an alcohol license that is permitted to serve or sell alcoholic beverages for on-premises consumption 5 p.m. must maintain a liquor liability insurance or general liability insurance policy with a liquor liability endorsement of at least a $1,000,000 limit during the period of the biennial permit or license. The establishment must provide evidence of a $1 million limit of liquor liability insurance or a general liability insurance policy with a liquor liability endorsement in order to obtain an alcohol license from the SC Department of Revenue.
Insurance companies that once wrote standalone policies to cover alcohol liability are not writing any new standalone liquor liability policies and they are not renewing existing standalone liquor liability policies as they expire.
SCMIRF has continued to be able to secure alcohol liability for special events as long as the carrier also insures the general liability coverages, which are premises providing slip-and-fall insurance, products and completed operations. In general, each event must be individually underwritten since the exposures of every event are different in terms of the number of attendees, presence of animals, fireworks or amusement devices.
For more information on reducing liability exposures through the purchase of a special events policy, and to receive a special events application, contact Robert Collins at email@example.com or 803.933.1279.