Contractual Liability Insurance Policy - Limited Warranty
A Limited Warranty is a generally a warranty provided at no additional cost to a buyer of a product. A limited warranty has specific structure and requirements as indicated in the Federal Magnuson-Moss Warranty Act.
A limited warranty is a promise made to the buyer from the Seller or OEM and may cover parts or parts and labor, depending on the terms and conditions contained in the written limited warranty.
A Seller or OEM may purchase a Contractual Liability Insurance Policy (CLIP) to back their Limited Warranty for risk transfer and/or to satisfy client requirements for a stronger backing to help ensure future performance of the limited warranty.
Solutions for backing a limited warranty are custom designed based on each unique situation.
Email Mike Frosch, president of Personal Safeguards Group, LLC, for additional information.