2019 Missouri Product Liability Insurance Report

  • In 2019, Missouri product liability insurers settled 646 claims with payments totaling $26,056,206.  An additional 45,739 claims were closed without payment.  
  • The bulk of payments were comparatively small.  Nearly 47 percent of paid claims were closed at amounts less than $2,500; while nearly 69 percent were closed for less than $10,000. 
  • At the other end of the scale, three claim was reported to have payment between $500,000 and $1 million, and six claims had a settlement for $1 million or greater. 
  • Products resulting in the most paid claims between 2010 and 2019 were:
Product Type Number of Paid Claims Average Payment
Asbestos 1,964 $32,970
Appliances and Accessories 1,223 $3,455
Restaurants – Serve Alcohol 240 $3,935
Manufacturers – NOC 196 $214,458
Chemical Mgf 183 $25,434
  • Products associated with the highest average payout for 2019 were:
Product Type Number of Paid Claims Average Payment
Tank Bldg/Warehouses/Vacant Bldgs 1 $2,000,000
Farms/Ranches 1 $500,000
Electrical Equipment 1 $255,898
Food Products - Dry 1 $255,035
Manufacturers - NOC 28 $252,021
  • In 2019, total payments were 35 percent of premium, compared to 91 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 $39 million in Missouri 2019. This compares to homeowners premium ($2.2 billion), private passenger auto ($4.3 billion), and workers’ compensation ($911 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 Commerce & Insurance, 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.