June 7th is World Food Safety Day, a global reminder of the importance of preventing, detecting, and managing foodborne risks. At Falvey Insurance Group, we believe food safety goes beyond the supply chain. It is reflected in how companies respond when issues arise.
Product recall coverage plays a vital role in responding to these risks. In honor of this year’s World Food Safety Day, let’s take a closer look at how this policy helps protect food and drink manufacturers and suppliers from the financial and reputational consequences of a recall and why having the right protection in place is crucial to public health and consumer trust.
Product Recall Statistics as of 2025:
Product recalls are costly and climbing at an alarming rate. According to Sedgwick’s Q1 product recall report
- Consumer product recalls surged by 90.6%, marking the highest level recorded since 2011.
- Pharmaceutical recalls increased by 7.4%, with more than 27 million units impacted.
- Conversely, automotive recalls declined by 13.3%, reaching a 12-year low.
- While the number of USDA food recalls rose, the volume of products affected decreased.
These shifts are driven by increasing regulatory uncertainty, changing compliance priorities, and the complexities of global trade dynamics.
Real-World Examples: Why Safety & Response Go Hand-in-Hand
Quaker Oats Granola Bar Recall
In 2023, the Quaker Oats Company issued a recall of a number of granola bars and cereals because of potential contamination with Salmonella. These products were distributed throughout all the U.S., as well as several other countries. Consumers were advised to check their pantries and dispose of any products matching the recalled lot codes. Fortunately, there were no confirmed reports of any illnesses in correlation to the products that were recalled. This incident stressed the importance of prompt action and transparent communication in managing food safety risks and protecting public health.
Boar’s Head Provision Company
In 2024, Boar’s Head recalled over 7 million pounds of deli meats—including liverwurst, bacon, bologna, ham, and salami—after a listeriosis outbreak was linked to its products. The outbreak led to 60 hospitalizations and tragically resulted in 10 deaths. Their reputation and finances had a severe impact. Boar’s Head faced multiple wrongful death lawsuits and ultimately announced the indefinite closure of its Jarratt, Virginia plant. This case is a prime example of how even large, well-known corporations are susceptible to catastrophic losses when food and safety issues arise.
Coco Candy: Design Flaw Leads to Tragic Death
Not all recalls stem from contamination. In a tragic incident occurring April of 2023, a 7-year-old girl from New York choked to death after consuming a Cocco Candy Rolling Candy product. The candy design, which features a rolling ball mechanism to dispense liquid candy, posed a significant choking hazard, as the ball could easily dislodge and get trapped in the throat. Shortly following this incident, the CPSC warned consumers to stop purchasing this candy. This devasting accident highlights the importance of product design in ensuring consumer safety, especially for products intended for children.
Falvey’s Recall Coverage for Food & Drink Products
Our specialty brokerage team can assist with product recall policy; a safety net that helps food and beverage companies respond quickly and effectively to issues like contamination, tampering, product defects, and negative publicity. This coverage includes, but is not limited to:
- Recall costs
- Business interruption
- Brand rehabilitation
- Extortion
- Third-party recall contractual liabilities
- Extra expenses
While this post highlights food and beverage risk, Falvey’s recall solutions also extend to pharmaceutical, medical devices, and automotive sectors.
From rising recall trends to complex global supply chains, the need for proactive risk management is essential. At Falvey Insurance Group, we’re proud to support food and beverage companies with coverage that responds to crises, as well as help protect the safety, trust, and well-being of consumers around the world.
To learn how Falvey’s tailored recall solutions can protect your brand and bottom line, reach out to our team today.
