A rise in liquor liability insurance rates is causing some problems for local businesses like the Spartanburg Memorial Auditorium.
If you’re sitting in one of the seats at the Spartanburg Memorial Auditorium, you expect to be able to buy a beer, but now you can’t. Roger Newton, CEO of the Spartanburg Regional Auditorium, said their liquor liability insurance has been cancelled and he’s worried it will affect their shows and concerts.
“Needless to say, it’s been very frustrating. As of the 6th of October, we had no insurance coverage,” Newton said.
Since the auditorium’s insurance was cancelled, Newton said she has had a huge problem securing the necessary insurance for her alcoholic beverage sales.
“I can only charge so much for beer. So we’re in a difficult position at the moment. We have to sell alcohol, it’s part of what people expect when they come here for shows,” he said. “We’re incentivising our promoters to bring us shows and that’s part of the incentive package.”
The state of South Carolina requires all businesses that serve alcohol after 5 p.m. to carry at least $1 million in liquor liability insurance.
Newton says insurance companies are losing money and leaving the state.
“There are only three to five companies in the state that would write coverage for us,” he said.
Last year, he said, they paid $1,200 for their insurance. Now one quote they’ve gotten is $100,000. Last year, the Spartanburg Regional Auditorium made more than $200,000 in alcohol sales.
“I want this building to be busy, I want this building to contribute to the community, and we’ve been doing that over the last year, but that’s going to slow down dramatically if we don’t get this insurance issue resolved,” Newton said.
Those who attend shows and concerts said the venue needs to get its insurance back so they can sell drinks.
“I think it’s going to be really detrimental to people, people like to have an alcoholic drink at concerts and things like that. So I think it will probably hurt their business,” says Christy Mitchem.
“At concerts a lot of people really like to drink because, you know, it just boosts you up,” said Sara Clevenger.
“They’ve got some good shows coming up in the next few months, so they really need to take care of it,” said Mitchem.
“I would still go, but I know a lot of people have different opinions,” said Clevenger.
Newton said not all of their events are alcohol related, but without alcohol sales at some events, their food and beverage revenue is down 75%.
“We could lose all those types of events; it could be devastating for us,” he said.
“The next Broadway show coming to the Spartanburg Memorial Auditorium will be Chicago, starting November 3. He said no events have been cancelled and they are hoping to get insurance soon.
Newton said they have until early January to secure insurance to sell alcohol.
