As you have probably heard Zara was “caught” selling Holocaust-Inspired Striped T-Shirts. This is not the first time Zara has came up with a “designer” product like that. Of course, Zara has apologized and quickly recalled the products.
Too bad for Zara, because as with any product recall, there is a huge cost $$$$ to recall the products from the shelves.
Most likely they have a Product Recall Insurance in place which has saved them.. but what if they wouldn’t have it?
Whether the company is large or small, it has a huge risk that at some point they would need to recall their products quickly. Zara, Fitbit and similar companies had to recall their products due to various issues. As with any product, product recall coverage is extremely helpful, especially, when you lunch a new product. Nowadays, it is very costly for the business owner to lunch the recall, so product recall insurance is a huge relief when it comes to recall.
While Product Recall coverage could be a part of your product liability policy, the majority of manufacturers, importers and wholesalers don’t have it. Our agents would be happy to speak with you and consult you on product recall coverage options available. We represent over 20 insurance companies and specialize on products liability and product recall insurance.