Product Liability Insurance Loss Ratios by State (2026): Where Catastrophes Hit | GBC
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Product Liability Insurance Loss Ratios by State: 2026

Product liability — coverage for claims that a company's product caused injury or property damage — earned $4.3B in 2023 premium. Nationally it runs a 49.3% loss ratio and a healthy 0.0% underwriting profit — and results swing hard by state: loss ratios range from -4.5% in DE to 147.2% in PA.

National loss ratio (2023)
49.3%
Claims paid per $100 of premium (before insurer expenses)
Underwriting profit
0.0%
Positive = a profitable line for carriers nationally
Premiums earned (2023)
$4.3B
51 states ranked below

Source: NAIC 2023 Report on Profitability by Line by State (public regulator data). Loss ratio = incurred losses ÷ premiums earned. Product-liability results swing with large verdicts and mass-tort litigation, so a single state or year can look very different from the national average.

Commercial property loss ratio by state — worst first

Click a column heading to re-sort.

# State Loss ratio Premiums earned Underwriting profit
1 PA 147.2% $159.5M -98.7%
2 NV 124.6% $44.5M -102.4%
3 KS 121.1% $44.5M -70.9%
4 MN 119.4% $122.8M -78.3%
5 SC 95.7% $74.6M -59.6%
6 RI 88.0% $13.9M -56.1%
7 WI 75.2% $119.1M -43.6%
8 AL 74.8% $52.3M -29.2%
9 NJ 74.6% $230.0M -26.3%
10 NY 72.1% $315.1M -10.4%
11 SD 71.1% $19.1M -23.3%
12 OK 67.6% $46.3M -42.4%
13 WY 67.3% $7.7M -12.8%
14 WA 66.8% $104.5M -14.0%
15 IN 65.2% $123.3M -23.3%
16 CA 64.0% $693.7M -20.4%
17 NM 62.0% $16.0M -17.8%
18 ND 61.8% $18.0M -1.6%
19 HI 60.5% $12.9M -2.5%
20 FL 56.0% $343.4M -7.8%
21 IL 55.2% $239.0M -11.6%
22 MS 54.3% $25.3M -18.8%
23 NC 52.5% $137.5M -5.2%
24 VT 51.5% $9.2M 8.8%
25 ID 49.3% $24.1M -9.9%
26 MA 48.2% $148.0M 8.7%
27 TX 47.0% $450.0M 7.3%
28 UT 46.3% $63.6M 8.8%
29 CO 45.4% $99.2M 5.7%
30 MO 44.1% $78.0M -3.0%
31 KY 39.8% $38.8M 13.4%
32 AK 39.6% $7.1M 19.6%
33 AZ 37.4% $84.2M 8.3%
34 AR 35.5% $27.1M 22.5%
35 MI 35.2% $129.9M 21.3%
36 ME 34.5% $14.3M 24.0%
37 OH 31.4% $157.4M 33.6%
38 OR 30.1% $73.1M 27.1%
39 MT 27.8% $17.0M 30.6%
40 GA 25.8% $146.7M 29.7%
41 TN 25.3% $96.0M 38.4%
42 IA 21.8% $57.5M 47.1%
43 MD 21.6% $55.9M 33.3%
44 NH 20.8% $17.0M 30.2%
45 VA 18.2% $73.0M 47.8%
46 NE 12.8% $32.0M 61.1%
47 WV 6.4% $10.9M 41.9%
48 CT 3.2% $65.3M -30.3%
49 LA 2.2% $60.3M 48.9%
50 DC -3.1% $9.3M 73.2%
51 DE -4.5% $17.9M 49.5%

Loss ratio by state — charted

PA147.2%NV124.6%KS121.1%MN119.4%SC95.7%RI88.0%WI75.2%AL74.8%NJ74.6%NY72.1%SD71.1%OK67.6%WY67.3%WA66.8%IN65.2%CA64.0%NM62.0%ND61.8%HI60.5%FL56.0%IL55.2%MS54.3%NC52.5%VT51.5%ID49.3%MA48.2%TX47.0%UT46.3%CO45.4%MO44.1%KY39.8%AK39.6%AZ37.4%AR35.5%MI35.2%ME34.5%OH31.4%OR30.1%MT27.8%GA25.8%TN25.3%IA21.8%MD21.6%NH20.8%VA18.2%NE12.8%WV6.4%CT3.2%LA2.2%DC-3.1%DE-4.5%
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How product liability compares to other commercial lines

National 2023 loss ratio by line — product liability highlighted. Higher = less profitable for carriers.

Commercial lineNational loss ratio (2023)
Commercial Auto 74.4%
Commercial Multiple Peril 62.6%
Commercial General Liability 60.2%
Medical Professional Liability 57.6%
Product Liability ← this study 49.3%
Commercial Property 46.0%
Workers Compensation 45.1%
Inland Marine 45.0%

Frequently asked questions

What is product liability insurance?
It covers a business against claims that a product it made, sold, or distributed caused bodily injury or property damage.
Is product liability profitable for insurers?
It roughly broke even in 2023 — about a 49% loss ratio and near-zero underwriting profit nationally (NAIC) — but state results vary widely.
Why does product liability vary so much by state?
Large jury verdicts and mass-tort litigation drive the line. Pennsylvania ran roughly a 147% loss ratio in 2023, while some states posted very low or even negative loss ratios from reserve releases.
Are these numbers a quote?
No. These are aggregate NAIC industry results by state — not a quote. Your product-liability rate depends on the product, sales, and claims history.
⬇ Download the data (CSV)
Cite this study
Get Business Coverage. (2026). Product Liability Insurance Loss Ratios by State: 2026. Retrieved from https://www.getbusinesscoverage.com/research/product-liability-loss-ratios-by-state-2026

Methodology

Figures are from the NAIC 2023 Report on Profitability by Line by State — the National Association of Insurance Commissioners' public compilation of insurer financial results, for the Product Liability line. Product-liability results are driven by large jury verdicts and mass-tort litigation and can swing sharply by state and year. Loss ratio is incurred losses divided by premiums earned; underwriting profit reflects the insurance result after expenses. We rank states worst-first by loss ratio. These are aggregate carrier economics, not a quote for any business.

Data Study #8 · Get Business Coverage. Aggregate NAIC industry results, not individual premiums. Compiled 2026 from public regulator data.

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