The Justice Act of 2025: Strengthening South Carolina’s Business Climate
February 12, 2025
For years, South Carolina businesses and consumers have faced an unfair and unbalanced legal system—one that drives up insurance costs, limits market availability, and leaves businesses and individuals vulnerable to excessive lawsuits.
The Justice Act of 2025 (S.244) has been introduced to fix these issues, bringing much-needed legal reform to our state. This bill will protect businesses from excessive liability, reduce insurance premiums, and create a fairer legal system for everyone—while still ensuring victims of negligence can seek justice.
After failing to pass meaningful reform in the Senate last year, S.244 is back with momentum, and we are cautiously optimistic about its progress. Now is the time for South Carolina business owners, consumers, and community leaders to come together and push for real change.
The Problem: A Broken Legal System that is Hurting S.C. Businesses
The current legal climate in South Carolina has significant flaws that impact businesses, insurance providers, and consumers alike. Some of the biggest issues include:
- Skyrocketing Insurance Costs – Due to excessive litigation and unpredictable “nuclear verdicts” , businesses—especially those in construction, trucking, logging and hospitality—struggle to find affordable liability insurance.
- Limited Market Availability – Insurers are pulling out of South Carolina due to legal uncertainty, making it harder for businesses and consumers to find coverage at reasonable rates.
- Higher Costs of Goods and Services – When businesses pay more for insurance, those costs are often passed on to consumers in the form of higher prices.
- Businesses Being Held Liable for Damages They Didn’t Cause – Loopholes in current laws allow plaintiffs to seek damages from businesses simply because they have the deepest pockets, even if they were not at fault! This has to stop!
The Justice Act of 2025 directly addresses these issues, giving South Carolina businesses the legal protections they deserve while ensuring a sustainable and fair insurance market for consumers.
How the Justice Act of 2025 Fixes These Issues
This bill introduces several common-sense reforms that will bring fairness back to our legal system while maintaining protections for victims. Some of the key changes include:
For Businesses:
- Fair Liability Rules – Businesses will only be responsible for the harm they actually caused, preventing them from being unfairly targeted in lawsuits.
- Lawsuit Reform to Reduce Costs – Changes to liquor liability laws, construction defect claims, and underinsured motorist coverage will stabilize insurance markets, reduce premiums, and expand coverage options.
- Improving the Availability of Business Insurance – By reducing lawsuit abuse, more insurance companies will be willing to operate in South Carolina, increasing competition and lowering costs.
- Seatbelt Admissibility & “John Doe” Cases – New provisions will allow courts to consider whether an injured party was wearing a seatbelt or not.
For Consumers:
- Lower Auto & Home Insurance Premiums – Excessive lawsuits increase costs for all policyholders. S.244 will help control those costs, making insurance more affordable.
- Protecting Victims’ Rights – This bill maintains access to legitimate claims while reducing frivolous lawsuits that slow down the system and inflate settlement costs.
- Reducing Cost of Goods & Services – When businesses save on insurance, they can pass those savings to consumers through lower prices and better wages.
Why Your Support is Needed to Pass This Bill
Last year, the SC Justice Act (S.533) faced obstacles in the Senate due to concerns about specific provisions. However, since then, industry leaders, insurance professionals, and legislators have worked together to refine the bill and build bipartisan support.
Other states, such as Georgia, have successfully enacted similar legal reforms, proving that these changes help businesses while still allowing victims to seek justice. Now, it’s time for South Carolina to follow suit.
This bill has made progress, but we need your voice to ensure it passes in 2025.
How You Can Help
Your involvement is crucial in shaping a more sustainable business climate and insurance market in South Carolina. Contact your senator today and urge them to support S.244. Here’s how:
- If you know your Senator personally, reach out with a direct message.
- Find your Senator using this website: https://www.scstatehouse.gov/member.php?chamber=S
- Search with your home address
- Click on their name or district number to open your Senator’s profile.
- Use the “Send a Message” feature to express your support for the bill.
A fair legal system benefits everyone—small businesses, workers, and consumers alike. Let’s work together to make South Carolina a better place to do business.
Not sure what to say to your senator? You can use this prompt as a template to communicate your support.
Additional Resources from the IIABSC
Single-page overview of S.244, the Justice Act of 2025
