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Is there a food maker, retailer or consumer product manufacturer in the United States that isn’t insured against fire damage? Of course not. Yet a fire insurance claim is extremely rare, occurring perhaps once in the history of most companies.

Now what are the odds that a typical manufacturer or retailer will have to recall a product in the next year? Based on the hundreds of recalls announced each month by the Food and Drug Administration, the Consumer Product Safety Commission, and the U.S. Department of Agriculture, the chances are awfully good that any sizable company that makes or sells products to consumers will be hit with at least one recall in the next 12 months.

It’s no wonder then that companies are increasingly purchasing custom insurance policies designed to blunt the negative effects of a business crisis that impacts tens of millions of products each year.

According to a recent article in Fortune, the last year has seen explosive growth in the area of recall insurance – and for good reason. With legislators and regulators tightening product safety controls, we’ve witnessed huge increases in the number of recalls issued since 2007’s “Year of the Recall.” And with the Consumer Product Safety Improvement Act (CPSIA) now holding companies liable not only for the problems that led to a recall, but for the effectiveness of a recall itself in terms of consumer notification and product retrieval, the costs of a modern-day product liability crisis are rising fast.

Of course, the logistical expense of a major recall is often only half the equation. Intensified media coverage and heightened consumer anxiety often combine to create brand and reputational liabilities that can drag on the bottom line long after a recall is over.

As a result, most recall insurance carriers provide public relations assistance as an essential part of their recall insurance policies. From sharing messages of concern, commitment, and action with the general public to managing delicate discussions with federal and state regulators, communications counsel and execution are key aspects of an effective recall response – and insurers are rightly selling such expertise as a key value-added proposition for clients.

With the recall landscape growing more perilous every day, the message to consumer product companies is simple: The question isn’t whether you can afford to protect yourself against losses due to a recall; it’s whether you can afford not to.

Gene Grabowski is the Senior Vice President of Crisis and Litigation at Levick Strategic Communications, the nation’s top crisis communications firm. He is also a contributing author to Bulletproof Blog. Connect with him @crisisguru.