Food Recall Insurance - Some Tips and Traps to Consider

Food businesses must plan for the risk of a food recall. Contamination or other defects may necessitate product withdrawal from time to time but a full food recall especially directed at the level of consumers must be triggered if any safety risks exist. The costs can be prodigious and could drive an ill-prepared business towards insolvency. Many business people mistakenly believe that product liability insurance or public liability insurance will meet the costs of a full recall. In this article of 2,200 words, we highlight why this is not so and we explain the costs which can arise out of a product recall and the limitations of insurance policy coverage.

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