If you're running a business in Myrtle Beach, you know the Grand Strand isn't your typical small town. With 18.2 million visitors spending $13.2 billion here in 2024, your business faces risks that landlocked cities never deal with. That beachfront shop or oceanview restaurant? It's in the path of Atlantic hurricanes. Those vacation rentals generating income all summer? They're full of other people's families and belongings. And that surge of tourists every June through August means you're hiring seasonal workers, serving alcohol to crowds, and dealing with more foot traffic than most businesses see all year.
Here's what catches most Myrtle Beach business owners off guard: standard business insurance policies aren't built for coastal tourism operations. You need coverage that understands your reality—the hurricane deductibles, the liquor liability requirements, the seasonal cash flow challenges, and the fact that one tropical storm can shut you down during your most profitable weeks. Let's walk through what actually protects your business on the Grand Strand.
Why Myrtle Beach Businesses Need Specialized Coverage
Tourism supports more than 82,000 jobs across the Grand Strand, and the industry's economic impact exceeds $26 billion when you factor in supply chains and household spending. That scale brings serious liability exposure. When you've got crowds moving through your establishment every day during peak season, the odds of someone slipping, getting injured, or causing property damage increase exponentially.
The coastal location adds another layer. The 2024 Atlantic hurricane season brought forecasts of 23 named storms, with several achieving major hurricane status. Standard commercial property insurance won't cover you adequately here. You'll need wind and hail coverage with deductibles typically ranging from 1% to 5% of your property's value—that's $10,000 to $50,000 on a $1 million property. And here's the kicker: that wind coverage still won't protect you from flooding. Storm surge and rising water require separate flood insurance through the National Flood Insurance Program or private insurers.
Essential Coverage for Hospitality and Restaurant Operations
If you run a restaurant, bar, or any establishment serving alcohol after 5 p.m., South Carolina law requires you to carry at least $1 million in liquor liability coverage. This isn't optional—it's a legal mandate passed in 2017. And the cost? It's climbing fast. One Myrtle Beach bar owner saw premiums jump from $55,000 in 2022 to $145,000 in 2023. The reason is simple: claims from alcohol-related incidents are expensive, and coastal tourist destinations see more of them.
Liquor liability protects you when someone drinks at your establishment and then causes injury or property damage to a third party. Without it, you're personally liable if an intoxicated patron leaves your bar and causes a car accident. General liability insurance won't cover alcohol-related claims—you need this separate policy. Given Myrtle Beach's party atmosphere and tourist crowds, it's not a coverage you want to skimp on.
Workers' compensation is equally critical. The hospitality industry has higher injury rates than office environments—think kitchen burns, slip-and-falls on wet floors, lifting injuries from moving supplies. With seasonal hiring surges, you'll have new employees learning the ropes during your busiest periods. Workers' comp covers medical bills and lost wages if an employee gets hurt on the job, and in South Carolina, it's required for businesses with four or more employees.
Vacation Rental Coverage That Actually Works
Running a vacation rental in Myrtle Beach puts you in business, whether you realize it or not. Your homeowners insurance policy? It won't cover you once you start charging guests to stay in your property. Insurers consider short-term rentals commercial operations, which means you need commercial coverage designed for vacation rental businesses.
What does that look like? Start with commercial general liability insurance that covers guest injuries and property damage claims. If a guest trips on your deck stairs or gets food poisoning from your welcome basket, you're liable. Property coverage needs to account for higher occupancy and turnover than a primary residence—more wear and tear, more opportunities for damage. You'll also want loss of income coverage that kicks in if your property becomes uninhabitable due to hurricane damage right before peak season.
North Myrtle Beach requires vacation rental operators to obtain business licenses and comply with zoning restrictions—most residential neighborhoods don't allow short-term rentals except in specific zones like RMV (Residential Multifamily Visitor). Business license fees are calculated as a percentage of your rental revenue, and you'll need to collect both city accommodations tax (3%) and state sales/accommodations tax (13%). Your insurance should be in place before you list your property or apply for that license.
Business Interruption: Your Safety Net for Hurricane Season
Here's the scenario most Grand Strand business owners dread: it's late August, you're in the middle of your most profitable season, and a major hurricane forces mandatory evacuation. You close for a week, maybe two. Your building survives with minor damage, but you've lost $50,000 in revenue during peak tourist weeks. Property insurance covers the broken windows and roof repairs. It doesn't cover the income you would have earned.
That's where business interruption insurance becomes essential. This coverage pays for lost income and continuing expenses like payroll, rent, loan payments, and utilities when a covered event forces you to close temporarily. For seasonal businesses that generate the majority of annual revenue during summer months, losing even one week can devastate your cash flow. Business interruption coverage keeps you afloat until you can reopen and start generating income again.
Pay attention to waiting periods and coverage limits. Most policies have a waiting period (often 48-72 hours) before business interruption coverage kicks in, and they'll pay out for a specified time period based on how long it reasonably takes to resume operations. For coastal businesses, make sure your policy covers hurricane-related closures specifically—some insurers exclude certain perils.
Navigating Coastal Insurance Challenges
Getting affordable coverage in coastal South Carolina isn't always straightforward. Many national insurers have pulled back from hurricane-prone areas or increased rates significantly. If you're having trouble finding wind and hail coverage in the standard market, the South Carolina Wind and Hail Underwriting Association (Wind Pool) serves as a last-resort option for coastal properties and businesses.
The Wind Pool is an association of insurance providers offering wind and hail coverage when standard insurers won't. It's typically more expensive than conventional coverage, but it's available when you've been turned down elsewhere. You'll need to demonstrate that you've attempted to obtain coverage through at least two standard market insurers before the Wind Pool will consider your application.
Average hurricane insurance costs in South Carolina range from $1,500 to over $5,000 annually depending on your coverage limits, property value, and location. Businesses right on the oceanfront pay premium rates compared to those a few blocks inland. Deductibles are typically percentage-based rather than flat amounts, so a 2% deductible on a $2 million property means you're paying the first $40,000 of hurricane damage out of pocket.
Getting Coverage Right for Your Business
The smart approach is working with an independent insurance agent who understands Grand Strand businesses. They'll know which carriers are actively writing policies in coastal areas, what coverage combinations make sense for your specific operation, and how to structure deductibles to balance premium costs with out-of-pocket risk.
Before you shop for coverage, document everything: your property's construction details, security systems, fire suppression equipment, employee count, annual revenue, and past claims history. Insurers price based on risk, and you can often reduce premiums by installing hurricane shutters, upgrading roofing materials to impact-resistant options, or implementing safety protocols that reduce liability exposure.
Review your coverage annually, especially if your business grows or you add new services. That vacation rental you started with one property? If you've expanded to three properties, your insurance needs have changed. The restaurant that didn't serve alcohol? Once you add a bar, you need liquor liability. Stay ahead of coverage gaps by treating your insurance review as a regular business planning activity, not something you only think about when renewals arrive.
Running a business on the Grand Strand means navigating risks that come with the territory—literally. But with the right insurance strategy built around your actual exposure to hurricanes, seasonal operations, hospitality risks, and coastal property challenges, you can protect what you've built without losing sleep every time a tropical system forms in the Atlantic. Get your coverage right now, before you need it.
