Food Liability Insurance Program (FLIP) has announced the addition of product recall insurance to its coverage options, now available for purchase entirely online. This move eliminates the need for food and beverage business owners to consult an agent, offering a streamlined solution to protect against the financial fallout of product recalls.
The coverage, which can be added to any FLIP general liability policy for as little as $109 per year, is the only 100% online product recall policy specifically designed for food and beverage businesses. It provides two coverage limits—$10,000 aggregate or $25,000 aggregate—and covers expenses related to both voluntary and involuntary recalls.
The launch comes amid a concerning rise in food recalls. According to FLIP, the number of food recalls increased by 15% between 2020 and 2024, with approximately 300 recalls in 2024 alone. These incidents led to nearly 1,400 reported illnesses, 487 hospitalizations, and 19 deaths. Undeclared allergens, Listeria, and Salmonella were the leading causes, underscoring the risks faced by small to mid-sized food businesses.
“Adding product recall insurance demonstrates FLIP’s commitment to supporting food and beverage entrepreneurs through every stage of their business,” said Daryle Stafford, President and CEO of FLIP. “Product recalls place a serious financial burden on small businesses, potentially forcing them to shut down. 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, saving them time and money.”
FLIP’s product recall insurance is tailored for small to mid-sized food and beverage businesses, offering a hassle-free online purchase process. Business owners must have an active general liability policy or bundle one with their recall insurance during checkout. FLIP streamlines insurance by allowing entrepreneurs to bundle several types of liability coverages with one provider.
For more information, visit https://www.fliprogram.com/product-recall-insurance.
