Food Liability Insurance Program (FLIP) has expanded its offerings with online product recall insurance specifically designed for food and beverage entrepreneurs. This new coverage allows business owners to purchase protection directly through FLIP's digital platform without requiring agent assistance, marking a significant shift in accessibility for small to mid-sized operations.
The insurance is available for as little as $109 per year when added to any FLIP general liability policy. Business owners can choose between two coverage limits: $10,000 aggregate or $25,000 aggregate. The coverage addresses expenses related to both voluntary and involuntary recalls, providing financial protection during what can be catastrophic events for small businesses.
The timing of this offering coincides with concerning industry trends. Between 2020 and 2024, food recalls increased by 15%, with approximately 300 recalls occurring in 2024 alone. These incidents resulted in nearly 1,400 reported illnesses, 487 hospitalizations, and 19 deaths. Undeclared allergens, Listeria, and Salmonella were identified as the leading causes of these recalls.
Daryle Stafford, President and CEO of FLIP, emphasized the program's significance, stating that product recalls place serious financial burdens on small businesses that could potentially force them to shut down. The online availability at https://www.fliprogram.com/product-recall-insurance represents FLIP's commitment to making essential protection more accessible and affordable for food entrepreneurs facing increasing recall threats.
To purchase the product recall coverage, business owners must maintain an active general liability policy with FLIP or bundle one during the checkout process. This integration with existing coverage options streamlines the insurance process for food and beverage entrepreneurs who can now access multiple types of liability protection through a single provider.
The introduction of this fully online product recall policy addresses a critical gap in the market, particularly for smaller operations that may have previously found recall insurance cost-prohibitive or difficult to obtain through traditional channels. As recall incidents continue to rise, this affordable digital solution provides crucial financial safeguards for businesses operating in an increasingly regulated and risk-prone industry.
