In addition to the health risks posed by Salmonella to consumers, these outbreaks also impact various food-related businesses.  In the near term, they may incur unexpected expenses associated with notifying consumers, destroying bacteria-infected products, cleaning equipment, and implementing any product recalls or refunds. The business’s reputation suffers once the public becomes aware of the Salmonella outbreak affecting food, potentially leading to a decline in revenues. The company may also incur fines and penalties related to food safety.  Infected consumers may also seek compensation for their harm.

Claims against businesses for harm caused by Salmonella infections are often filed as product liability suits (i.e., defective food harmed someone).  Other grounds for litigation include negligence (i.e., failure to exercise reasonable care in handling and preparing food, resulting in illness) and breach of warranty (i.e., consuming unsafe food resulted in illness).

A business can recover costs associated with a Salmonella outbreak in several ways. Commercial General Liability (CGL) insurance may cover bodily injury and property damage if the infection is considered an insured risk. Coverage depends on the specific policy language. Insurers will sometimes add coverage for foodborne illnesses through endorsements if it is not included in the original policy.

Food-borne Illness Insurance is a specialized coverage option that may benefit businesses such as restaurants or food producers. This insurance typically covers expenses for discarding contaminated products, initiating product recalls and replacements, addressing trade name recovery costs, and supporting reputational rehabilitation. Because policy details differ, businesses should review what triggers coverage and the specific costs included.  

Suppose that employees contract Salmonella after consuming food provided by their employer. In that case, Workers’ Compensation insurance generally covers their medical bills and lost wages, provided that the illness is determined to be work-related under the policy terms.