Significant Insurance Coverage Issues Arise from FDA Salmonella-Related “Recall”

The recent national salmonella outbreak has sickened at least 810 people in 36 states and the District of Columbia. It has cost the food industry at least $100 million, according to the National Restaurant Association, and before it ends, will cost hundreds of millions more, affecting the entire U.S. food supply industry.

In a July 1 Wall Street Journal article, Lisa Lochridge, spokesperson for the Florida Fruit and Vegetable Association, was quoted as saying, “The ripple effect is huge: It’s not just the growers but everyone on the supply chain—the packers, the shippers, on down to food service and the retail level.” The article also notes that this latest and most expensive outbreak, involving tomatoes and now possibly other ingredients in certain tomato-based products, salsa, and guacamole, follows more than 20 such salmonella outbreaks since 1995 that have been linked to lettuce, spinach, other leafy greens, or tomatoes alone. Over this past weekend, another Wall Street Journal article pointed to the possibility of jalapeños rather than tomatoes being the source of the salmonella.

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