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What happens to the warranty if the manufacturer goes out of business?


Many manufacturers offer long limited warranties, with 10-years for LED or 25-years for solar panel warranties being common.

These long warranties are very attractive and help justify a long-term return on investment for the end purchaser. Often, these programs are leased or financed, so the systems must perform properly for the length of the warranty.

The problem is customers want to know what happens if the manufacturer goes out of business and no one can stand behind the warranty.

Options exist for a low one-time cost to obtain default insurance to back the warranty if the manufacturer goes out of business. This is not a service contract, it is an actual insurance policy to "backstop" the manufacturer's warranty if the manufacturer goes out of business.

The process doesn't change for the manufacturer, and the manufacturer still manages their warranty, customer experience, and claims management. There is no need to pay a third party to insert themselves between the manufacturer and the end customer.

Additional information on manufacturer warranty insurance is available at Meramec Secure.


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