South Carolina tort reform bill advances, could impact insurance rates

COLUMBIA, S.C. — A comprehensive bill reforming civil liability in South Carolina could potentially impact insurance premiums and every kind of court case, from drunk driving accidents to home insurance claims. 

Lawmakers met Thursday to discuss tort reform with a bill over a dozen pages long and public testimony from trial lawyers, homeowners, and more.

The bill, which Senate leaders say is necessary to lower insurance rates, seeks to reform how blame is divided in lawsuits and hold bars more accountable for drunk driving accidents.

Under current state law, individuals can sue and collect the full damages from one defendant, even if they weren’t the most at fault. The new bill would only allow someone to be fully responsible if they were more than 50% at fault.

Sen. Shane Massey, who supports the bill, said reforming the state’s tort law could reduce insurance costs.

“In many areas, our citizens, our businesses, our large industry are paying more for insurance than they ought to be paying. You look at other states, North Carolina, Georgia, people are paying less,” Massey said. 

Advocates say the lower potential for frivolous lawsuits or suits that wrack up massive damage claims lowers the risk for insurance companies, which leads to lower premiums.

“Our tort laws are worse here than they are in some of those other states, and the result of that has an impact on individual people, on businesses and on larger industry,” said Massey.

It’s an issue that’s gotten national attention. 

Earlier this month, Donald Trump Jr. commented on X, writing, “Hey, South Carolina, what’s going on with this? This bill seems like a complete disaster. Hopefully, the legislature gets smart and strikes this down!”

Another key aspect of the bill would require mandatory alcohol server training and hold bars liable if they knowingly serve someone who is visibly intoxicated or underage. Bars violating the training requirements would face a six-month license suspension for a first offense, with permanent revocation after a second offense.

Some lawmakers, however, feel the penalties for first offenses are too severe. 

Sen. Deon Tedder (D-Charleston) suggested giving bars more leeway for first offenses before implementing stricter penalties for repeat violations.

“Then, it’s brought to the knowledge of the operators and at that point, they may not know,” Tedder said. “But if it happens the second time, I totally agree with you, some more severe consequences.”

The judiciary subcommittee approved the bill on Thursday, and it will be sent to the full committee, where it may undergo amendments. Senate Majority Leader Shane Massey hopes to see the bill on the Senate floor next week.