Example Scenario
Many LED Lighting OEM's (or sellers, installers) have clients that are requiring a long term limited warranty or service contract secured with strong financial backing to ensure performance of the warranty in the future. This is a simple 5 year example but additional options also exist.Example Multi Year Solution
5 Year Limited Warranty Make-Up
The OEM purchases protection for a one-time cost. The protection covers the warranty after an initial retention period and up to 5 years from the date of purchase.In this example, the OEM will hold a retention period of the first 30 days of coverage. After the 30 days the balance of the 5 years is covered by the additional protection and the OEM has shifted the liability off their books. The retention period is very important and is designed to ensure the coverage isn't covering Dead On Arrival units or units that are improperly installed.
Claims Administration
The OEM in this example currently performs all the repair and claims administration under their limited warranty and would essentially continue to utilize the same process going forward subject certain requirements.
Claims administration is highly customizable depending on the requirements of the client. In the above example the OEM performs all the claims processing and administration under their limited warranty and would essentially continue to utilize the same process going forward - subject certain requirements.
This is an example only and offers no guarantees of coverages, no accounting advice, no legal advice and no commitments are provided based on the information contained on this website.
This is an example only and offers no guarantees of coverages, no accounting advice, no legal advice and no commitments are provided based on the information contained on this website.