FLIP Launches Online Product Recall Insurance for Food and Beverage Businesses
Food Liability Insurance Program introduces affordable online product recall coverage as food recalls increase 15% from 2020-2024, providing critical financial protection for small to mid-sized businesses facing rising recall threats.
Food Liability Insurance Program (FLIP) has expanded its insurance offerings to include product recall coverage specifically designed for food and beverage entrepreneurs, available entirely through an online purchasing process. The new coverage addresses the growing threat of product recalls in the food industry, which saw a 15% increase between 2020 and 2024, resulting in approximately 300 recalls last year that caused nearly 1,400 reported illnesses, 487 hospitalizations, and 19 deaths.
The insurance can be added to any FLIP general liability policy for as little as $109 per year, making it an affordable option for small to mid-sized businesses. FLIP's product is positioned as the only 100% online product recall policy available for food and beverage businesses, eliminating the need to work through an insurance agent. The coverage includes protection for both voluntary and involuntary recalls, with business owners able to choose between two coverage limits: $10,000 aggregate or $25,000 aggregate.
Daryle Stafford, President and CEO of FLIP, stated that the addition demonstrates the company's commitment to supporting food and beverage entrepreneurs through every stage of their business. "Product recalls place a serious financial burden on small businesses, potentially forcing them to shut down," Stafford explained. "We've made it easier than ever for these entrepreneurs to protect themselves from the increasing threat of recalls with a budget-friendly option they can purchase online."
The timing of this insurance product launch coincides with concerning industry trends. Undeclared allergens, Listeria, and Salmonella were identified as the leading causes of food recalls in recent years. These statistics highlight the significant financial risks that food and beverage business owners face when handling recalls, which can include catastrophic expenses beyond the actual product replacement costs.
FLIP streamlines insurance for food and beverage entrepreneurs by allowing them to bundle multiple types of liability coverages with a single provider. Business owners must maintain an active general liability policy or bundle one with their recall insurance during the purchase process. For more information or to purchase coverage, visit https://www.fliprogram.com/product-recall-insurance.