Product Warranty Insurance

Example Multi Year Scenario

An OEM wishes to sell a product in the United States with a 5 year limited warranty. The OEM needs a solution that provides a financial backing to their limited warranty to satisfy clients and potentially to allow for balance sheet relief.

Example Multi Year Solution


5 Year Limited Warranty Make-Up

The OEM is provided with a single price to cover the liability under the limited warranty after an initial retention period and up to 5 years from the date of purchase.

In this example, the OEM will retain the first 90 days of coverage under their limited warranty and then the coverage will take over for the balance of 5 years.

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Claims Administration

The OEM currently performs all the claims administration under the limited warranty and would continue to utilize the same process going forward subject to an agreed upon process and documentation requirements.
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Highly Configurable Solution

This is a highly configurable solution based on several factors including:
  • Determine the length of the entire limited warranty - from a monthly program associated with a membership up to 10 years from date of purchase
  • Determine the desired conditions of the limited warranty (i.e. parts only, parts & labor, tech support, on-site, etc.)
  • Determine the length of the Retention Period that the OEM will retain
  • Review the type of product and manufacturing & performance data (appliance, electronics, mobile, LED, HVAC, IoT, etc.)
  • Review service and administration process
  • Determine cost, typically as a percentage of the product cost
This is intended as an example only and each opportunity is individually reviewed to determine if a solution is viable. Options exist on how coverage is provided. No guarantees, coverages, accounting advice, legal advice or commitments are provided based on the information contained on this website.