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Wimbledon Dress Code Leads to Nike Dress Callback: A Product Liability Lesson

By June 27, 2016October 6th, 2020Insurance

I will be very honest. I am not a huge tennis fan. I only watch it one time and that’s for the biggest tennis event of the season, Wimbledon. For an avid gym person, the workout fashion is always my main concern, especially when you have the likes of Serena Williams gracing the court. Fun fact, Wimbledon is the only grand slam tournament that requires players to abide by a dress code: white only. After the appearance of Nike’s newest dress, the stipulation to cover enough skin has been added to the list.

While Nike is adamant that this is not a product recall, Nike has sent an email to players and representatives requesting the dresses be brought to the Nike Wimbledon house “to make a small change to your dresses per Wimbledon rules. This is very important.” When it comes to creating a product and selling it on the market, product market can be a scary possibility. While the Wimbledon players is on a small scope for only players, what if it had been on a mass marketed item scale. The cost would be astronomical. Global regulatory standards have increased with new safety rules being implemented constantly leading to more and more companies running into issues with products being called off the market. Products are normally recalled due to a product causing or having the ability to cause bodily injury or property damage. Think of Firestone Tire’s national recall of tires on Ford SUVs where 174 died, 20 million tires were recalled, and Ford and Firestone lost around $3 billion. Normal general liability insurance or property insurance is not going to provide coverage in helping with the financial and legal cost of recalling, reimbursing, and replacing these items. It must be added by endorsement or written on its own separate policy. If a company designs, manufactures, distributes, or sells a physical product-anything from construction to play things to spaghetti-strongly consider having this coverage. It would give you the finances needed to defend in the case of lawsuit, revamp marketing or packaging to give adequate warning.

Money makes the world go round and most of the world gets that by selling something. Just make sure that if the wind changes and something goes wrong, your insurance is there for you.

If you have questions regarding your insurance, ECI is always here. 
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