Is Product Liability Insurance Profitable in 2026? Loss Ratios by State
Product Liability protects manufacturers and distributors against claims from the products they make or sell. Its loss ratios reveal how carriers price this specialized exposure by state.
Source: NAIC 2023 Report on Profitability by Line by State (public regulator data). Loss ratio = incurred losses ÷ premiums earned; lower is more profitable for carriers.
Product Liability profitability by state (2023)
| State | Loss ratio | Premiums earned | Underwriting profit |
|---|---|---|---|
| PA | 147.2% | $159.5M | -98.7% |
| NV | 124.6% | $44.5M | -102.4% |
| KS | 121.1% | $44.5M | -70.9% |
| MN | 119.4% | $122.8M | -78.3% |
| SC | 95.7% | $74.6M | -59.6% |
| RI | 88.0% | $13.9M | -56.1% |
| WI | 75.2% | $119.1M | -43.6% |
| AL | 74.8% | $52.3M | -29.2% |
| NJ | 74.6% | $230.0M | -26.3% |
| NY | 72.1% | $315.1M | -10.4% |
| SD | 71.1% | $19.1M | -23.3% |
| OK | 67.6% | $46.3M | -42.4% |
| WY | 67.3% | $7.7M | -12.8% |
| WA | 66.8% | $104.5M | -14.0% |
| IN | 65.2% | $123.3M | -23.3% |
| CA | 64.0% | $693.7M | -20.4% |
| NM | 62.0% | $16.0M | -17.8% |
| ND | 61.8% | $18.0M | -1.6% |
| HI | 60.5% | $12.9M | -2.5% |
| FL | 56.0% | $343.4M | -7.8% |
| IL | 55.2% | $239.0M | -11.6% |
| MS | 54.3% | $25.3M | -18.8% |
| NC | 52.5% | $137.5M | -5.2% |
| VT | 51.5% | $9.2M | 8.8% |
| ID | 49.3% | $24.1M | -9.9% |
| MA | 48.2% | $148.0M | 8.7% |
| TX | 47.0% | $450.0M | 7.3% |
| UT | 46.3% | $63.6M | 8.8% |
| CO | 45.4% | $99.2M | 5.7% |
| MO | 44.1% | $78.0M | -3.0% |
| KY | 39.8% | $38.8M | 13.4% |
| AK | 39.6% | $7.1M | 19.6% |
| AZ | 37.4% | $84.2M | 8.3% |
| AR | 35.5% | $27.1M | 22.5% |
| MI | 35.2% | $129.9M | 21.3% |
| ME | 34.5% | $14.3M | 24.0% |
| OH | 31.4% | $157.4M | 33.6% |
| OR | 30.1% | $73.1M | 27.1% |
| MT | 27.8% | $17.0M | 30.6% |
| GA | 25.8% | $146.7M | 29.7% |
| TN | 25.3% | $96.0M | 38.4% |
| IA | 21.8% | $57.5M | 47.1% |
| MD | 21.6% | $55.9M | 33.3% |
| NH | 20.8% | $17.0M | 30.2% |
| VA | 18.2% | $73.0M | 47.8% |
| NE | 12.8% | $32.0M | 61.1% |
| WV | 6.4% | $10.9M | 41.9% |
| CT | 3.2% | $65.3M | -30.3% |
| LA | 2.2% | $60.3M | 48.9% |
| DC | -3.1% | $9.3M | 73.2% |
| DE | -4.5% | $17.9M | 49.5% |
All 51 states/territories with 2023 NAIC data for this line, sorted by loss ratio (highest first). A high loss ratio means carriers pay out more in claims relative to premium — often a signal that rates are rising.
What this means for your business
Loss ratios and underwriting profit shape what carriers charge. Learn how Product Liability coverage works in our coverage guides, then compare real quotes for your business.
Compare Product Liability Quotes →