2017 Missouri Product Liability Insurance Report

  • In 2017, Missouri product liability insurers settled 514 claims with payments totaling $19,130,208.  An additional 36,161 claims were closed without payment.  
  • The bulk of payments were comparatively small.  Nearly 39 percent of paid claims were closed at amounts less than $2,500; while nearly 70 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 four claims had a settlement for $1 million or greater. 
  • Products resulting in the most paid claims between 2008 and 2017 were:
Product Type Number of Paid Claims Average Payment
Asbestos 1,568 $41,157
Appliances and Accessories 1,495 $3,083
Restaurants – Serve Alcohol 218 $2,053
Restaurants – Serve No Alcohol 190 $1,774
Manufacturers – NOC 165 $219,279
  • Products associated with the highest average payout for 2017 were:
Product Type Number of Paid Claims Average Payment
Tents and Canopies 1 $416,000
Gasoline Stations 5 $274,344
Electrical Equipment 5 $216,804
Gardening Equipment and Landscaping 1 $202,000
Contractor and Asphalt Construction 5 $153,473
  • In 2017, total payments were 68 percent of premium, compared to 12 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 $37 million in Missouri 2017. This compares to homeowners premium ($1.9 billion), private passenger auto ($3.8 billion), and workers’ compensation ($920 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.