South Dakota Product Liability Insurance Profitability (2023)
In 2023, Product Liability insurers earned $19.1M in premiums in South Dakota and ran a 71.1% loss ratio — the 11th-highest of 51 states (one of the highest loss ratio for the line).
Source: NAIC 2023 Report on Profitability by Line by State. Loss ratio = incurred losses ÷ premiums earned.
Nationally, Product Liability ran a 49.3% loss ratio in 2023, so South Dakota is above the national average. See how every state compares on the Product Liability market page.
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A higher loss ratio means carriers paid out more of each premium dollar in claims, which tends to push South Dakota product liability rates up and thin the field of carriers competing for the business; a lower one signals a more profitable, more competitive market. With a 23.3% underwriting loss, South Dakota carriers relied on investment income to make the line work in 2023 — a sign of rate pressure ahead. Counting investment income, carriers earned a -8.8% profit on product liability insurance transactions in South Dakota in 2023 — NAIC's broadest profitability measure for the line. Either way, these are industry aggregates — your own product liability rate depends on your business, and the only way to see it is to compare filed rates and real quotes.
South Dakota's $19M in product liability premiums is the 38th-largest of the 51 states NAIC reports for the line. Across those states, loss ratios span from 147.2% in Pennsylvania — the toughest market for carriers — down to -4.5% in Delaware, the most profitable; South Dakota's 71.1% places it 11th of 51. For buyers, a state near the top of that spread usually means firmer product liability pricing and fewer competing carriers, while a state near the bottom tends to run softer and more competitive. By premium, South Dakota is about 0.4% of the $4.3B national product liability market, and its loss-ratio rank places it in the toughest quartile of states for carrier profitability — context that shapes how aggressively carriers compete for South Dakota product liability business.
This is one of the smallest product liability markets NAIC reports. At $19M in premiums, a single large claim can move South Dakota's loss ratio by several points on its own, so read this figure as one year of a small book rather than as a settled signal about how carriers price the state.
Key takeaways
- South Dakota product liability: $19M in 2023 premiums at a 71.1% loss ratio (NAIC).
- That ranks South Dakota 11th of 51 states by loss ratio for the line — carriers struggle here.
- These are industry aggregates, not a quote — your product liability rate depends on your business; compare filed rates and real quotes.
Getting Product Liability coverage in South Dakota
See recent South Dakota rate filings on the South Dakota rate page, learn how Product Liability works in our Product Liability guide, then compare real quotes for your business.
Compare South Dakota Product Liability Quotes →