COLUMBIA, S.C. (WIS) – A new partnership between the South Carolina Bar and Tavern Association and Ragnar Hospitality aims to expand access to liquor liability insurance for bars and restaurants across the state, as business owners continue to grapple with soaring insurance costs despite recent legislative reforms.

The initiative comes as many hospitality operators say South Carolina’s long-running liquor liability insurance crisis continues to threaten small businesses, even after lawmakers passed a major reform bill last year intended to ease pressure on the industry.

Ragnar Hospitality, through its insurance program tailored specifically for South Carolina businesses, already provides coverage for nearly 40 establishments statewide. Company leaders say their approach focuses on evaluating each business’s operations rather than relying primarily on alcohol sales percentages, a metric commonly used by many insurers.

“We don’t insure anybody that we don’t step foot into their establishment,” said Andrew Reina, CEO of The Ragnar Group Inc. “We go beyond the percentage of alcohol sales metric that insurance companies use now as their main driver. We’re very interested in what the operations are, not so much how much alcohol you’re selling.”

Business owners say insurance premiums have risen dramatically in recent years as insurers have exited the South Carolina market, reducing competition and leaving establishments with fewer coverage options.

Doug Aylard, founder of Columbia-based Vino Garage, said his annual insurance costs have fluctuated sharply since opening the business in 2019.

“My insurance rate was $5,800 a year, and that included general liability, workers comp and liquor liability,” Aylard said. “The next year it went up to $6,200, then up to $23,000, then $15,550, then $41,400.”

Through Ragnar’s program, Aylard said his annual premium has dropped to about $25,000 — still significantly higher than what he paid when he opened, but a substantial decrease from recent highs.

Industry leaders argue that legislative changes have not yet delivered the relief many businesses expected.

“Those unintended consequences drove a lot of small businesses out of business simply because they can’t afford to tack on higher and higher bills,” Reina said.

The South Carolina Bar and Tavern Association hopes the new program will encourage additional insurers to enter the market and increase competition.

“This will bring insurance companies back into the market and create a more competitive market than we currently have,” said Christopher Smith, the association’s executive director.

For business owners like Aylard, lower insurance costs could create growth opportunities instead of simply covering operating expenses.

“The legislature won’t fix something, so the business community had to step in and fix it for ourselves,” Aylard said. “What it’s going to do is allow me to expand or hire more people, increase the tax base and the dollars that we sell.”

Ragnar leaders said success for the program would mean reaching next summer’s renewal cycle without raising rates for the businesses currently insured through the program, a benchmark they believe would demonstrate stability in a market that has seen years of volatility.

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