2012 Product Liability Insurance Report

  • In 2012, Missouri product liability insurers settled 609 claims with payments totaling $10,318,617. An additional 3,436 claims were closed without payment.  
  • The bulk of payments was comparatively small. Nearly 55 percent of paid claims were closed at amounts less than $2,500; while nearly 76 percent were closed for less than $10,000. 
  • At the other end of the scale, no claims were reported to have payments between $500,000 and $1 million, and one claim had a settlement for $1 million or greater. The one claim with payment exceeding $1 million resulted in permanent injury. 
Products resulting in most paid claims between 2003 and 2012
Product type Claims paid Average payment
Asbestos 3,052 $23,729
Appliances 2,017 $2,148
Contractors 297 $20,555
Chemical 296 $23,351
Putty products 291 $155
Products associated with highest average payout for 2012
Product type Claims paid Average payment
Match and charcoal manufacturing 1 $125,000,000
Lead manufacturing 1 $1,500,000
Bolts, nuts, nails, tacks, screws 1 $600,000
Office machines, computers 8 $508,135
Boats 7 $437,430


  • In 2012, total payments were 60 percent of premium, compared to 181 percent in the prior year. Large, short-term fluctuations are not uncommon in product liability insurance. Due to small volume of business, a few large claims during a year can significantly impact the overall performance of the line
  • To illustrate the size of this line of insurance, total premium was $30 million in Missouri in 2012. This compares to homeowners premium ($1.6 billion), private passenger auto ($2.9 billion), and workers’ compensation ($769 million).

This report was compiled using closed claim data as reported under Section 374.414 RSMo., and financial data reported on the Missouri Supplement to Page 19 of the Annual Statement. The accuracy of this report is therefore dependent upon the accuracy of each company’s submitted data. Future releases of these data may contain revisions.

Any questions about this report should be addressed to the Statistics Section, DIFP, P.O. Box 690, Jefferson City, MO 65102-0690.

*Negative loss ratios can occur when insurers correct past over-reserving.

**To view the most recent Product Liability data, visit the Supplement Data Report page, select “Product Liability” under the “Property and Casualty Line” menu. Select year desired then click submit.