This is interesting. Neem extract has low mammalian toxicity, so it might be a good candidate, provided it does not affect the quality of the final product, such as taste. Mandarin®/Esfenvalerate looks at first hand too toxic for this purpose. Would it be possible to process the algae with the larvae included? Do you know the insect?
I suppose these are the quality standards? If so it would be worthwhile to do a test on the number of fragments the larvae produce. I would think that could be fairly little (for most insect larvae that is). What do they look like? If they have a soft epidermis you might be successful.
You also see that there is a zero allowance for pesticides, including neem (which is strange because that is impossible to demonstrate: they should indicate a realistic limit of detection/quantification; 0 or 'neg'. is never really zero). How many days would you have between the treatment and harvesting?