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Insurance Implications of the Peloton Treadmill Recall
There are a number of insurance issues here; liability for injuries caused by Peloton’s product, as well as the recall of the machines. What coverages are available in such situations?
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Peloton is a well-known manufacturer of expensive treadmills, exercise bikes, and other exercise equipment. In March of 2021, there was an accident where a 6-year old child died as a result of getting caught under the treadmill. At the time of the accident, the company said it was one of a small handful of incidents that occurred where children were hurt and the Peloton Tread+ was involved.
The Consumer Product Safety Commission (CPSC) began an investigation after the accident. The CPSC reported that emergency rooms treated 22,500 treadmill injuries in 2019, and 2,000 of those were children under the age of eight years old. A total of seventeen deaths have been reported due to treadmill use between 2018 and 2020.
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