2014 Missouri Product Liability Insurance Report

  • In 2014, Missouri product liability insurers settled 607 claims with payments totaling $17,831,439.  An additional 18,400 claims were closed without payment.  
  • The bulk of payments were comparatively small.  Nearly 44 percent of paid claims were closed at amounts less than $2,500; while nearly 72 percent were closed for less than $10,000. 
  • At the other end of the scale, four claims were reported to have payments 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 2005 and 2014 were:


Product Type

Number of Paid Claims

Average Payment




Appliances and Accessories






Putty Products



Restaurants – Serve No Alcohol




  • Products associated with the highest average payout for 2013 were:


Product Type

Number of Paid Claims

Average Payment




Chemical Mfg/Chemists






Medical Equipment/Instruments/Offices



Tank Bldg/Warehouse/Vacant Bldg




  • In 2014, total payments were 186 percent of premium, compared to 33 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 2014. This compares to homeowners premium ($1.8 billion), private passenger auto ($3.2 billion), and workers’ compensation ($896 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.