Introduction: Widespread violations of mandatory requirements entails administrative measures that cause economic damage to both consumers and economic entities. In the context of the development of integration processes and harmonization of legislation, new, more effective approaches to the governmental control (supervision) and food quality and safety management based on prevention of violations and reduction of damage risks are being introduced. The objective of our work was to substantiate the necessity of damage liability insurance for producers and retailers as an instrument of improving quality and safety of foodstuffs and reducing risks of damages to consumers and economic operators. Materials and methods: We analyzed data of the Sverdlovsk Regional Rospotrebnadzor Office, the Center for Hygiene and Epidemiology in the Sverdlovsk Region, the Federal Service of State Statistics, the Regional Solid Household Waste Management Operator, the Yekaterinburg Municipal Unitary Enterprise “Spetsavtobaza”, as well as provisions of the Code of the Russian Federation on Administrative Offenses, using comparative and time-series methods. Results: We established factors accounting for the cumulative economic damage to consumers and economic operators from circulation of substandard food products and found that they contributed differently in terms of the amount of property damage and health damages to consumers. Administrative penalties are the main reason for the property damage to economic operators. Intestinal infections cause most physical and material losses to consumers and these damages are inevitably shared with the state. Dairy and meat industries with extremely high risks incur the greatest financial losses. The use of various approaches to food safety management, including damage liability insurance, will help minimize risks, prevent their consequences, and protect consumers and economic operators. Conclusion: Violation of regulations poses significant risks of damage to consumers and economic losses to economic operators. Insurance may be considered as an alternative means of risk management motivating businesses to ensure food quality and safety, protect consumers and help maintain their health, and reduce economic losses.
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