2015 Missouri Product Liability Insurance Report

  • In 2015, Missouri product liability insurers settled 766 claims with payments totaling $34,234,023. An additional 23,262 claims were closed without payment.  
  • The bulk of payments were comparatively small. Nearly 49 percent of paid claims were closed at amounts less than $2,500; while nearly 71 percent were closed for less than $10,000.
  • At the other end of the scale, one claim was reported to have payment between $500,000 and $1 million, and five claims had a settlement for $1 million or greater.
  • Products resulting in the most paid claims between 2006 and 2015 were:
Product Type Number of Paid Claims Average Payment
Appliances and Accessories 1,675 $3,143
Asbestos 1,626 $33,753
Restaurants – Serve No Alcohol 222 $1,814
Restaurants – Serve Alcohol 220 $1,907
Plumbing 184 $16,234
  • Products associated with the highest average payout for 2015 were:
Product Type Number of Paid Claims Average Payment
Machinery Parts or Equipment – Use, Mfg 9 $1,326,136
Dairy Products 2 $500,464
Manufacturers 19 $448,674
Metal Extraction and Processing 1 $300,000
Fruit/Vegetables/Orchards/Vineyards 3 $110,583
  • In 2015, total payments were 57 percent of premium, compared to 186 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 $38 million in Missouri 2015. This compares to homeowners premium ($1.8 billion), private passenger auto ($3.3 billion), and workers’ compensation ($923 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 concerning this report should be addressed to the Statistics Section, Department of Insurance, Financial Institutions & Professional Registration, 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.