2020 Missouri Product Liability Insurance Report

  • In 2020, Missouri product liability insurers settled 666 claims with payments totaling $27,530,823.  An additional 49,119 claims were closed without payment.  
  • The bulk of payments were comparatively small.  Nearly 33 percent of paid claims were closed at amounts less than $2,500; while nearly 54 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 five claims had a settlement for $1 million or greater. 
  • Products resulting in the most paid claims between 2011 and 2020 were:
Product Type Number of Paid Claims Average Payment
Asbestos 2,318 $30,184
Appliances and Accessories 1,079 $6,048
Restaurants – Serve Alcohol 221 $4,386
Manufacturers – NOC 204 $218,704
Chemical Mgf 182 $26,228
  • Products associated with the highest average payout for 2020 were:
Product Type Number of Paid Claims Average Payment
Tank Bldg/Warehouses/Vacant Bldgs 2 $1,250,000
Building Structure/Prefab Mfg/Renovat 1 $900,000
Tents and Canopies 3 $691,667
Boat or Ship Building 1 $391,051
Machinery Parts/Equipment Use, Mfg 56 $339,121
  • In 2020, total payments were 25 percent of premium, compared to 37 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 $41 million in Missouri 2020. This compares to homeowners premium ($2.3 billion), private passenger auto ($4.2 billion), and workers’ compensation ($900 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.