South Carolina S 26: Watercraft Liability Insurance

Bill Text

2025-2026 Bill 26 Text of Previous Version (Jan. 29, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 26

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Committee Report

January 29, 2025

S. 26

Introduced 
by Senator Hutto 

S. Printed 1/29/25--S.

Read the first time January 14, 2025

________

The committee on Senate Fish, Game 
and Forestry

To whom was referred a Bill (S. 26) to amend 
the South Carolina Code of Laws by adding Section 50-21-107 so as to provide 
that owners of watercraft of more than seventy horsepower must carry liability, 
etc., respectfully

Report:

That they have duly and carefully considered 
the same, and recommend that the same do pass:

GEORGE CAMPSEN for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill specifies it is unlawful for an 
owner of a watercraft of more than seventy horsepower, a personal watercraft, 
or a specialty propcraft titled in South Carolina or documented by the USCG 
with a hailing port in South Carolina to allow the operation of the watercraft 
without a liability insurance policy with a minimum of $50,000 combined 
liability coverage for bodily injury or property damage for any one occurrence.

Department of Natural Resources. DNR 
enforces state and federal laws related to boating and South Carolina's 
waterways. Currently, owners of boats are not required to have insurance. 
Owners of boats in South Carolina are required to title and register their 
boats if they have an inboard motor and not already documented by the USCG. An 
owner must also title all outboard motors with five horsepower or more. DNR is 
currently reviewing this bill. The fiscal impact of this bill for DNR is 
pending, contingent upon further response from the agency. 

Department of Insurance. DOI 
anticipates that the additional responsibilities as a result of this bill will 
be managed by existing appropriations and staff. Therefore, there will be no 
expenditure impact to the agency. 

Judicial. This bill creates a 
misdemeanor related to boat insurance and establishes fines. The fine for the 
first and second offenses range from $50 to $500. The penalty for the third and 
subsequent offenses includes a fine and imprisonment up to one year. Judicial 
reports that implementation of this bill may increase caseloads in circuit 
court. While the increase in the number of course cases due to this bill is 
unknown, Judicial anticipates that any increase in caseload can be managed 
using existing staff and appropriations. Therefore, this bill will result in no 
expenditure impact for Judicial. 

State Revenue

This bill provides that a person in 
violation of the specified liability for watercraft is guilty of a misdemeanor 
and subject to fines.

DOI currently collects taxes on insurance 
premiums written on the liability policies of watercraft that are currently 
voluntary. The cost of insurance varies on policy limit, type of boat, location 
of boat, driver history, and other factors. In addition to these risk 
characteristics determining policy costs, DOI has also expressed that the 
impact of this bill on the price of insurance is undetermined. While this bill 
will likely increase the total value of premiums of watercraft liability 
policies collected and therefore increase revenue, DOI has expressed that 
$50,000 in liability insurance without any other required coverages, such as 
uninsured boater or permissive use, is relatively low coverage and should be 
obtained with relatively low premiums. Therefore, DOI anticipates the amount of 
insurance premium tax revenue that may be generated beginning in FY 2025-26 as 
a result of this bill will be positive, but not significant.

This bill may result in an increase in 
court fines and fees due to the newly created misdemeanor. This bill requires 
all fines prescribed as a result of operating a watercraft that requires 
liability insurance without coverage must be used by DNR for the purpose of a 
boater training and safety program. 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 
50-21-107 SO AS TO PROVIDE THAT OWNERS OF WATERCRAFT OF MORE THAN SEVENTY 
HORSEPOWER MUST CARRY LIABILITY INSURANCE OF AT LEAST FIFTY THOUSAND DOLLARS OF 
COVERAGE PER OCCURRENCE, TO PROVIDE PENALTIES, AND TO PROVIDE FOR THE 
COLLECTION OF FINES.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Article 1, Chapter 21, Title 50 of the S.C. Code is 
amended by adding:

 Section 
50-21-107. (A) For the purposes of 
this section:

 (1) 
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