American International group turned out to be one of those who are likely to pay the bills for Britain’s food scare.

Insurance experts state that the recall bill can run into tens of millions of pounds.

AIG and fellow American insurance company ACE were named yesterday as insurers to Premier Foods. ACE provided no comments.

"I can confirm that we are insurers for product recall at Premier Foods." She refused to comment further,” said a spokeswoman for AIG.

Britain’s food industry is now facing beatings valued at £100 million because of the recall of more than 400 products that experts identified to be poisonous.

Numerous products, including pizzas, sandwiches and pies, were taken off the shelves under the threat of cancer-causing dye known as Sudan 1 which was used in preparation of chili powder used for manufacturing Worcester sauce.

The FSA (Food Standards Agency) yesterday added several more items so that today’s list of foods thought to contain Sudan1 dye is extended to 429.

"Councils are making a particular effort to target smaller businesses who may not have as good links with manufacturers,” said a spokesman for the Conversion of Scottish Local Authorities.

"Councils may also undertake spot checks to confirm that outlets have removed affected products. However, authorities trust that this is happening and rely on outlets to comply."

Martyn Evans, director of the SCC, said: "Consumer confidence in processed food has undoubtedly suffered as a result of this incident. There are questions over how soon the FSA was alerted and whether everything possible has been done to protect consumer safety."

The FSA hopes to have full list of the infected products by Wednesday and says that the local councils are responsible for recall.

Tests held in Italy earlier this year confirmed that the sauce used for manufacturing these products contained a small amount of Sudan1 – a dye that is used to colour solvents, oils, petrol, shoe and floor polish and is illegal to add to food products.