February 17, 2025

South Carolina S.244: A Win for Big Insurance, a Loss for Law Firms & Citizens

What Is Senate Bill 244 (S.244) and Why Should You Care?

South Carolina Senate Bill 244 (S.244) is being promoted as a necessary reform to the state’s civil justice system. Supporters claim it will bring fairness to the courts, particularly in personal injury cases. However, a closer look reveals that this bill disproportionately benefits large insurance companies while limiting the ability of injured citizens and small businesses to seek justice.

For law firms representing personal injury victims, small businesses, and individuals harmed by negligence, this bill is a direct attack on their ability to secure fair compensation for clients. The proposed changes tilt the legal playing field in favor of corporations and insurers, making it harder for victims to get the justice they deserve.

A Closer Look at What S.244 Changes

At its core, S.244 modifies the way fault is apportioned in personal injury and other civil cases. The most significant aspects of this bill include:

Apportionment of Fault – Courts will be required to assign a percentage of fault to each party involved in an incident, including parties who are not named in a lawsuit.
Elimination of Joint and Several Liability – If multiple parties are found liable, each will only pay for their exact percentage of fault, even if one party is financially unable to cover their share.
Protection for Insurance Companies – The bill makes it more difficult for plaintiffs to recover damages, reducing insurers’ payout obligations.
New Liabilities for Small Businesses – Alcohol-serving establishments face greater liability under the bill, while at the same time, injured patrons may have fewer legal options.

These changes raise serious concerns for law firms, individuals, and small business owners. Let’s examine who stands to lose the most.

How S.244 Harms Law Firms and Their Clients

For law firms handling personal injury, wrongful death, and other civil claims, S.244 makes obtaining fair compensation for clients much more difficult.

1. More Difficult to Hold Defendants Fully Accountable

The elimination of joint and several liability is a major blow to injured plaintiffs. Under current laws, when multiple parties are responsible for someone’s injuries, the plaintiff can recover the full amount from any liable party. That defendant can then seek reimbursement from other at-fault parties.

Under S.244, each defendant is only responsible for their percentage of fault—which means if a major at-fault party lacks funds or insurance, the victim may never receive full compensation.

Example:

A law firm represents a car accident victim who was hit by a drunk driver.
The bar that overserved the driver is found 40% at fault, and the driver is 60% at fault.
The driver has no insurance and no assets.
Under current laws, the victim could recover full damages from the bar, which could then pursue the drunk driver for their share.
Under S.244, the bar would only pay 40%, and the victim would be left with nothing for the remaining 60%.

This change makes it harder for victims to get fully compensated—bad news for personal injury lawyers and their clients.

2. Increased Litigation Costs and Complexity

With apportionment of fault now extending to nonparties, expect insurance companies to drag out cases, arguing that other unnamed individuals or businesses should be held partially responsible. This means:

Longer court battles before settlements or verdicts.
Higher legal costs for firms fighting for their clients.
More burdens on plaintiffs to prove fault beyond just the named defendants.

This extra complexity benefits insurance companies, who can afford prolonged litigation, while smaller firms and solo practitioners struggle to keep up.

Big Insurance Wins – While South Carolinians Lose

The real winners of S.244 are the insurance companies, who have long sought to reduce their financial exposure in personal injury and liability cases.

1. Fewer Payouts, Higher Profits

By limiting liability and making it harder for plaintiffs to recover full damages, insurers will pay out far less in settlements and verdicts. This leads to record profits for insurance companies at the expense of injured individuals.

Less responsibility for covering damages.
Fewer successful claims.
Lower financial risks for insurers, even when their policyholders are clearly at fault.

2. Insurance Companies Will Delay and Deny More Claims

By allowing defendants to shift blame onto unnamed third parties, insurers have more legal loopholes to avoid payouts. Expect delays, denials, and lowball settlement offers to become even more common.

Insurance companies already delay and underpay claims—S.244 makes it even easier for them to do so.

Impact on Small Businesses: A Hidden Trap

While big businesses and insurance companies stand to gain, small businesses in South Carolina face increased risks.

1. Small Businesses Face Greater Liability

S.244 expands liability for bars and restaurants that serve alcohol. While this may seem like a responsible move, it actually creates greater exposure for small establishments while shifting blame away from reckless individuals.
Under the new law:

If a patron gets drunk at a bar and causes a crash, the bar could be sued.
If a business doesn’t carry high levels of liability insurance, they could go bankrupt covering damages.
Big chains and franchises can afford lawsuits, but local bars and restaurants cannot.

2. Increased Insurance Costs for Small Businesses

As businesses face greater liability risks, insurance premiums will rise—and those increases will hit small businesses the hardest.

What This Means for the Future of South Carolina

If S.244 passes, here’s what South Carolinians can expect:

Higher Insurance Rates – Insurance companies will not pass savings on to customers. Instead, auto, business, and liability insurance premiums will increase as coverage limits are forced higher.
More Burdens on Victims – Injured individuals will struggle to recover damages, leading to more medical debt and financial hardship.
Fewer Law Firms Taking Cases – As cases become harder to win, law firms will be forced to turn down more clients, leaving victims with fewer legal options.
Struggling Small Businesses – Bars and restaurants will be forced to carry higher insurance limits, increasing costs and potentially putting them out of business.

Final Thoughts: Who Really Wins?

While supporters of S.244 claim it modernizes South Carolina’s legal system, the reality is it’s a gift to big insurance companies. This legislation prioritizes corporate profits over justice, making it harder for everyday citizens to recover damages and easier for insurers to deny claims.

Law firm owners, business owners, and South Carolinians need to be aware of what’s at stake. The legal system should protect the injured, not the insurers. If S.244 passes, access to justice will become harder than ever.

What Can You Do?

Educate your clients about how this law could affect their rights.
Contact your state representatives and voice opposition to S.244.
Join legal associations that are fighting against unfair tort reform.
Encourage business owners to speak out—they too will face higher insurance costs and risks.

The Bottom Line

South Carolina should not trade away justice to boost insurance industry profits. If S.244 becomes law, law firms, small businesses, and injured citizens will pay the price—while insurers laugh all the way to the bank.