Rising number of food recalls necessitates product recall insurance for many manufactuers
An article in Insurance Journal looks at how the increasing number of food recalls in the United States has led to a new insurance niche – for manufacturers seeking coverage should a recall occur.
Despite the increase in food-related recalls, industry standards are actually higher than ever, largely due to 2011’s Food Safety Modernization Act (FSMA). The FSMA has led to increased FDA inspections of manufacturing facilities, more stringent food testing requirements and greater access to companies’ safety plan documents. Yet recalls still frequently take place, and when they happen, the costs can be crippling.
As a result, some food manufacturers are beginning to invest in product recall coverage, although many still view the insurance as a “luxury buy” rather than a necessity, although that may change as recall rates continue to rise. According to one expert, carriers who provide product recall or contamination insurance have doubled in the last five years.
Have you or a family member suffered as a result of a contaminted food product? Contact the product liability attorneys at Hodes Milman Liebeck at 866-730-1976 or online at hmlm.com today to learn more.