South Carolina Dram Shop Law Updates

Beginning January 1, 2026, new laws will alter how bars, restaurants, and event venues are held accountable when they overserve customers who go on to injure others. 

This page serves as a living resource for lawyers, victims, businesses, and community members who want to understand what’s changing, why it matters, and how it could affect future cases.

The Law Before January 1, 2026

For context, here’s how dram shop liability currently works in South Carolina:

• Joint & Several Liability – Under §15-38-15(F), an establishment that sells alcohol can be held fully responsible for damages even if found just 1% liable.

• Mandatory Insurance – Bars and restaurants must carry at least $1 million in coverage.

• Different Standards for Beer/Wine vs. Liquor – The liquor statute (§61-6-2220) did not include the word “knowingly,” which created an argument for strict liability when liquor was sold to an intoxicated person.

Key Changes Under H.3430 (Effective January 1, 2026)

New Joint Liability Framework

• If both the drunk driver and the bar are found liable, the bar is responsible for 50% of the plaintiff’s actual damages.

• Drunk drivers and any other tortfeasors will be included on the verdict form.

Captive Insurance Restrictions

The new law also changes how liquor liability insurance policies can be written in South Carolina.

In the past, some insurers offered policies where the cost of defending a lawsuit reduced the total coverage available to pay victims. For example, if a bar had a $1 million policy and the defense costs were $200,000, only $800,000 might remain for the injured people.

Under the new rules, that practice is no longer allowed for captive insurers. Unfortunately, other types of insurance can continue to erode the coverage.

Mandatory Alcohol Server Training

Beginning in 2026, every server and manager at on-premises establishments must complete certified training.

• Who: All servers/managers

• When: Within 60 days of employment

• Format: Online, 4+ hours, interactive, proctored test

• Topics covered:

  • SC alcohol laws

  • DUI & liquor liability

  • Civil responsibility

  • ID verification & fake ID detection

  • Recognizing intoxication

  • Refusal of service techniques

  • Effects of alcohol

Certificates are valid for 3 years and must be maintained on-site for inspection. Importantly, completing this training also provides insurance premium credits.

Statutory Language Change: “Knowingly” Added

The liquor statute (§61-6-2220) now requires that liquor be sold “knowingly” to an intoxicated person for liability to attach. This aligns the standard with beer and wine sales and removes the possibility of strict liability.

Liquor Liability Coverage Reductions (Credits)

The required $1 million liquor liability policy may be reduced through specific credits, but coverage can never drop below $300,000.

Liquor Liability Insurance Credits (Effective Jan. 1, 2026)

Important: No matter how many credits apply, coverage can never drop below $300,000.

Special Provisions for Collegiate Venues*

Collegiate sports venues face additional requirements, including:

• Mandatory server training for all personnel

• Internal compliance checks during events

• Use of forensic ID systems

• Restrictions on alcohol sales in student sections

• Penalties for noncompliance, including potential permit loss

*Effective May 2025

Why These Changes Matter

• For victims and families: The law still ensures a chance for financial recovery when a bar contributes to a drunk driving crash, though liability is capped differently than before.

• For businesses: Compliance will require training, technology, and revised insurance policies. It also limits liability compared to the prior law.

• For attorneys: Case strategies will change, with liability now split between the establishment and driver, and new tactics tied to training and compliance.

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📄 Download the Dram Shop Law Update Slides (PDF)

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Questions About South Carolina’s New Dram Shop Law?

For media commentary, continuing education presentations, or case consultations, please contact:

Kenneth Berger
📞 (803) 790-2800
✉️ kberger@bergerlawsc.com

Frequently Asked Questions About South Carolina’s New Dram Shop Law

When do the changes to South Carolina’s Dram Shop law take effect?

The new law goes into effect on January 1, 2026. Until then, the current liability and insurance rules remain in place.

What is the biggest change under the new law?

The biggest change is the shift in liability. Instead of bars or restaurants being fully responsible if found even 1% liable, they will now be capped at 50% of the plaintiff’s actual damages when both the establishment and drunk driver are at fault.

Will bars still have to carry $1 million in liquor liability coverage?

Yes, but with important changes. Establishments may qualify for coverage credits that reduce the aggregate coverage amount, though it can never go below $300,000.

What credits can reduce required liquor liability coverage?

Credits include:

• Closing before midnight

• Ensuring all servers complete mandatory training

• Keeping alcohol sales below 40% of revenue

• Using forensic ID systems between midnight and 4 a.m.

• Non-profit or single-event permits

Who must complete alcohol server training?

Starting in 2026, all servers and managers at on-premises licensed locations must complete a state-approved training program within 60 days of employment.

What does alcohol server training include?

The program covers South Carolina alcohol laws, civil and criminal liability, ID verification, recognizing intoxication, refusal of service techniques, and the physical effects of alcohol. Training is online, lasts at least 4 hours, and requires a proctored test. Certificates are valid for 3 years.

What does the new “knowingly” standard mean?

Under the old law, some argued that a bar or restaurant could be held strictly liable just for serving liquor to an intoxicated person — even if the server did not realize the customer was drunk.

The statute now says a bar is only liable if it “knowingly” serves alcohol to someone who is already intoxicated. In practice, this means:

• Bars and servers must be aware of obvious signs of intoxication. Slurred speech, stumbling, glassy eyes, and other visible indicators can all show that service was “knowing.”

• The burden shifts in lawsuits. Victims and their lawyers will need to prove that the establishment either knew, or reasonably should have known, the customer was intoxicated.

• Consistency across alcohol types. Beer, wine, and liquor sales now follow the same standard, reducing confusion in court.

If evidence shows a bartender ignored clear signs of intoxication, the establishment can still be held liable.

Are there special rules for alcohol sales at college sporting events?

Yes. Collegiate venues must implement stricter safeguards, including mandatory server training, random compliance checks, forensic ID technology, and restrictions on alcohol sales in student sections. Failure to comply may result in heavy penalties or permit loss.

How do these changes affect injury victims and their families?

While liability limits shift, victims and families still have some protections. The law requires bars to carry meaningful coverage, mandates training, and introduces new safeguards designed to reduce overservice and protect the public.

How do these changes affect South Carolina businesses?

Businesses will need to update their insurance, train staff, and ensure compliance with new rules. Those who fail to adapt risk losing coverage, permits, or facing lawsuits with reduced coverage.