The South Carolina legislature is once again embroiled in a heated debate over tort reform, particularly with the introduction of Bill S.244. Proponents claim this bill will create a more favorable business climate by limiting liability, but the reality is far more troubling. This legislation would shift the burden of corporate negligence onto innocent victims while insurance companies continue to rake in record profits.
Attorneys affiliated with the South Carolina Association for Justice (SCAJ) have been at the forefront of this battle, testifying in multiple hearings to oppose legislation that weakens consumer protections. As a plaintiff’s attorney at Joye Law Firm Injury Lawyers, our team witnesses firsthand the injustices victims face—not just from the damage caused by negligent defendants, but also from the insurance companies that should be protecting them.
During a February 6th hearing, a plaintiff-side attorney speaking in opposition to the bill expressed serious concerns about its impact:
“My concern with the proposed legislation is that it unequivocally puts profits over people. The insurance industry has created a compelling narrative suggesting these changes will lower premiums, but they have not provided evidence to support that claim.”
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What Is South Carolina’s Senate Bill 244?
Introduced by a Senator from Edgefield with deep ties to a major insurance company, S.244 would fundamentally change South Carolina’s legal system, which has been in place for over 250 years. Although the bill is marketed as a reform to liquor liability laws, it carries sweeping changes that would affect a broad range of insurance claims. While it purports to lower premiums for restaurants and bars, critics warn that it is backed by the trucking industry and would actually increase costs for these businesses by requiring more coverage.
If passed, S.244 would make it harder for South Carolinians to hold insurance companies accountable. This change would harm not only victims of drunk driving by reducing their ability to seek damages from dram shop claims but also those affected by government corruption, medical malpractice, and defective construction claims. By allowing insurers to deny claims more easily and dragging out legal proceedings, the bill would leave many without the means to seek justice.
The Truth About Insurance Companies and Rising Costs
The insurance industry argues that limiting liability will lower premiums for consumers and support small businesses. However, the facts tell a different story. According to the Coalition for Fair Insurance Rates, car insurance premiums in South Carolina have increased by more than 40%, while home insurance rates have risen by 26%. Some homeowners have even been abandoned by insurers unwilling to pay damages from recent natural disasters.
Despite these rising costs, insurance companies are posting record profits, with their CEOs ranking among the highest-paid executives in the country. Instead of addressing these exorbitant premiums, the industry is pushing legislation, like S.244, to further protect their bottom lines—at the expense of everyday South Carolinians.
South Carolina is no stranger to broken promises from insurance reform. Similar legislation in other states has failed to deliver the benefits promised. After South Carolina passed medical malpractice reforms in 2005, premiums for medical providers increased by 18%. In Louisiana, a civil reform act passed in 2020 was supposed to lower car insurance rates by 25%, yet premiums continued to rise.
Why Tort Reform Matters for Victims
When corporations are shielded from full accountability, the people who suffer the most are those who can least afford it. Consider the heartbreaking case of the bride killed on Folly Beach. The driver responsible had been overserved at local establishments before causing the fatal crash. Without current liability laws, her grieving family would have no legal recourse to hold these businesses accountable. Stripping these protections away only compounds the pain for victims and their families.
The narrative that liability claims are driving small businesses to the brink is simply unfounded. The South Carolina Department of Revenue reports no significant increase in small business closures. The real issue lies in unchecked corporate greed and the lack of regulatory oversight on insurance practices.
Real Solutions for Fair Insurance Rates
If lawmakers genuinely want to help South Carolinians, they should focus on reforms that prioritize fairness and transparency. The Coalition for Fair Insurance Rates suggests several practical measures:
- Empower the Department of Insurance (DOI): Give the DOI regulatory authority to audit insurance company data and enforce fair rate practices.
- Joint Underwriting Market: Implement a system where insurers share profits and losses, making coverage more accessible and sustainable.
- Stronger DUI Laws: Enhance DUI enforcement to reduce alcohol-related incidents, which could lower claims and premiums.
- Server Training Bill: Require bartenders and servers to undergo training to prevent overserving and reduce the risk of alcohol-related accidents.
The Fight for Accountability in South Carolina Continues
South Carolinians deserve a legal system that holds negligent parties accountable while ensuring insurance companies cannot exploit their customers for financial gain. We are not against reform—but we are against reforms that prioritize corporate profits over consumer protection.
As the debate over S.244 continues, it is crucial to recognize who truly benefits from these changes. The answer is clear: large corporations and insurance companies. If we want a system that works for the people, lawmakers must reject legislation that weakens consumer protections and instead pursue policies that promote fairness, accountability, and public safety.
Your voice is crucial in this debate. To protect the rights of victims and ensure accountability, we urge you to contact your state legislators and express your opposition to bill S.244. Let them know that you stand for fairness and justice in South Carolina’s legal system.
To find and contact your legislators, visit the South Carolina Legislature’s official website.
Together, we can make a difference and uphold the rights of all South Carolinians.
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