Gucci and Adidas have come under fire in China over their luxury product, the Gucci x Adidas Umbrella, which costs an astonishing $1,644!
Now, with a price point roughly equivalent to over ₹1 Lakh, people reasonably expected the umbrella to be ‘waterproof’, as most umbrellas are meant to be. However, this umbrella could not keep out the rain.
Gucci’s website, which had initially described the product as an umbrella, soon changed the classification to “sun umbrella” or a parasol, clarifying that it was designed as a shield against the sun and is meant to be used as a decorative accessory.
This however did not stop the brands from getting massively critiqued on social media and facing backlash in China.
Although most users have only expressed discontent with the product so far, what would happen if one of them decided to sue the two companies?
Well cases like this can be covered under a Product Liability Insurance policy. This policy covers instances of injuries or harm caused to a business’s customers due to its products. So, in cases where the product’s labels or use instructions are found to be defective, a Product Liability Insurance policy can help cover associated losses.
However, it is worth noting that Gucci and Adidas have a good chance at winning a lawsuit if one were to arise, since they had already successfully conveyed the correct usage of the product. Furthermore, any expenses incurred while defending their stance can be completely covered by insurance.
Liability Insurance is an important security for many businesses, especially small enterprises who lack surplus funds to defend legal cases.
Learn more: Types of Liability Insurance policies