2018 Missouri Product Liability Insurance Report

  • In 2018, Missouri product liability insurers settled 678 claims with payments totaling $17,704,665.  An additional 41,150 claims were closed without payment.  
  • The bulk of payments were comparatively small.  Nearly 38 percent of paid claims were closed at amounts less than $2,500; while nearly 62 percent were closed for less than $10,000. 
  • At the other end of the scale, two claim was reported to have payment between $500,000 and $1 million, and three claims had a settlement for $1 million or greater. 
  • Products resulting in the most paid claims between 2009 and 2018 were:
Product Type Number of Paid Claims Average Payment
Asbestos 1,914 $34,393
Appliances and Accessories 1,354 $3,433
Restaurants – Serve Alcohol 220 $2,068
Manufacturers – NOC 196 $197,315
Restaurants – Serve No Alcohol 174 $1,867
  • Products associated with the highest average payout for 2018 were:
Product Type Number of Paid Claims Average Payment
Building Structure/Prefab Manufacture/Renovation/Wrecking 1 $900,000
Machinery Parts, Equipment Use, Mfg 4 $517,806
Products – Completed Operations 6 $169,721
Grain Elevator Operations 1 $151,164
Contractors - NOC 13 $100,217
  • In 2018, total payments were 90 percent of premium, compared to 68 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 2018. This compares to homeowners premium ($2.1 billion), private passenger auto ($4.1 billion), and workers’ compensation ($915 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.