Businesses that operate within the food industry on an ongoing basis, such as restaurants, concessions, caterers, food trucks, groceries, and schools, are well aware of the need for additional coverage for food spoilage or food contamination. However, businesses with only an incidental exposure to food risk may not be fully aware that the standard property policy may not provide coverage for this exposure. For example, a small antique shop that has a coffee bar and sells homemade pastries; or an insured who takes in local farmers' tomatoes for packaging before being distributed to grocers. Those insureds who deal with food manufacturing, processing, preparation, packaging, delivery, distribution, storage, or sale have exposure to food contamination. Food contamination incidents are common, as food may be contaminated with bugs, parasites, chemicals, bacteria or virus, any of which can cause illness, and food products can become contaminated at any stage, even when they are simply being stored or during delivery.

The Food and Drug Administration (FDA) oversees most of the nation's food supply, and it regulates all domestic and imported foods except meat, poultry and eggs (these are overseen by the U.S. Department of Agriculture). The Food Safety Modernization Act gives the FDA the power to prevent and respond to foodborne illnesses, with broad authority in its oversight extending to mandating comprehensive controls across the food supply, inspecting food producers and processors, and requiring food recalls, among other things.

A food contamination incident can impact businesses in a number of ways leading to financial or reputational loss. This may include costs to destroy or dispose of contaminated products, costs associated with the recall of products that may already be sold, required shut-downs of operations, or third-party injury claims from individuals who have been injured or become ill, or claims from businesses who used a contaminated product in another product. When a business has a contamination incident it will more than likely lead to people being wary of continuing with this business for months or even years to come, leading to substantial business income loss and enormous costs to restore consumer confidence.