2016 Missouri Product Liability Insurance Report

  • In 2016, Missouri product liability insurers settled 524 claims with payments totaling $12,554,924. An additional 29,509 claims were closed without payment.  
  • The bulk of payments were comparatively small. Nearly 54 percent of paid claims were closed at amounts less than $2,500; while nearly 78 percent were closed for less than $10,000.
  • At the other end of the scale, four claim was reported to have payment between $500,000 and $1 million, and two claims had a settlement for $1 million or greater.
  • Products resulting in the most paid claims between 2007 and 2016 were:
Product Type Number of Paid Claims Average Payment
Asbestos 1,609 $37,105
Appliances and Accessories 1,603 $2,860
Restaurants – Serve Alcohol 227 $1,958
Restaurants – Serve No Alcohol 204 $1,721
Plumbing 168 $14,337
  • Products associated with the highest average payout for 2016 were:
Product Type Number of Paid Claims Average Payment
Dairy Products 2 $511,250
Paper Products 1 $240,000
Forestry/Lakes/Fishing/Guides 1 $200,000
Gardening Equipment and Landscaping 2 $155,432
Contractor Equipment 1 $150,000
  • In 2016, total payments were 12 percent of premium, compared to 57 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 $35 million in Missouri 2016. This compares to homeowners premium ($1.9 billion), private passenger auto ($3.6 billion), and workers’ compensation ($933 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.