FLIP Launches Online Product Recall Insurance for Food and Beverage Businesses

Food Liability Insurance Program (FLIP) has expanded its coverage offerings with the introduction of online product recall insurance specifically designed for food and beverage entrepreneurs. This new coverage addresses the significant financial risks associated with product recalls, which have been increasing in frequency and severity across the industry.

The insurance is available for purchase entirely online without requiring agent interaction, making it accessible and convenient for business owners. Customers can add product recall coverage to any FLIP general liability policy starting at $109 per year, providing an affordable solution for small to mid-sized businesses. This represents the only 100% online product recall policy available specifically for food and beverage companies in the market.

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. This flexibility allows companies to select protection levels that match their specific risk profiles and financial capabilities.

The timing of this insurance offering is particularly relevant given recent industry trends. Between 2020 and 2024, food recalls increased by 15%, continuing an upward trajectory that has concerned industry professionals. In 2024 alone, approximately 300 food recalls occurred, resulting in nearly 1,400 reported illnesses, 487 hospitalizations, and 19 deaths. The leading causes of these recalls included undeclared allergens, Listeria, and Salmonella contamination.

Daryle Stafford, President and CEO of FLIP, emphasized the program's commitment to supporting food and beverage entrepreneurs through all business stages. Stafford noted that product recalls place serious financial burdens on small businesses, potentially forcing closures without adequate insurance protection. The online availability at https://www.fliprogram.com/product-recall-insurance makes this essential coverage more accessible while saving business owners both time and money.

FLIP's approach to insurance simplifies the process for food and beverage entrepreneurs by allowing them to bundle multiple 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. This integrated approach provides comprehensive protection against the growing threats facing food businesses in today's market environment.