1:25 PM - 2:10 PM
The Evolving Arena of Commercial Warranty Programs
There is an emerging and evolving market for commercial warranty. For many years, the commercial warranty market was limited to the medical field and restaurant markets. However, it’s growing at a rapid rate with demand creating several new warranty markets.The rapid change in consumer products have reshaped the warranty industry with the emergence of “Performance Guarantees”. Warranty coverage for previously expensive and complex systems for security cameras, home automation, and audio systems are now available using relatively inexpensive connected devices. Commercial entities are increasingly using automation and artificial intelligence due to a shrinking labor pool driven by historically low unemployment. New companies supporting this technology are driving demand for “warranty insurance” to stand behind their limited warranty or product performance. Increasing oversight of financials and services is driving companies to use financial tools such as Deferred Liability Insurance to remove long term liability on the books and increase current profitability. Overall, these markets have led to important developments in the, previously stagnant, commercial warranty market. For the time being, these markets are relatively unregulated allowing for creative new risk and warranty solutions.