Warranty Offerings

Selling an extended warranty can create recurring revenue, but the structure matters. Learn how state service contract laws, reimbursement insurance, reserves, surety, disclosures, and warranty classification affect whether a program can be sold legally and profitably.

Warranty and service contract companies carry insurance-like risk through contractual guarantees. Learn why CLIP structures stabilize reserves, reduce balance sheet exposure, and protect capital.

Written by Steven Barge-Siever, Esq. Many warranty, service contract, and “protection” programs believe they are operating outside insurance regulation simply because they avoid calling themselves insurance. That belief is wrong - and increasingly expensive. Across the U.S., regulators are not focused on labels. They are focused on economic reality: who bears risk, who controls funds, and who is legally obligated when things go wrong. When those elements line up, a program

A 2026 State-by-State Legal Guide for Warranties, Service Contracts, and UDAP Risk This article is for informational purposes only and does not constitute legal advice. Authored by Steven Barge-Siever, Esq. I. The Core Problem: More “Protection Plans” Than Legal Structures Across consumer and commercial markets, companies are layering on: Extended warranties Accidental damage plans Membership “protection” benefits Subscription-based replacement programs Home, appliance, auto

CLIP vs captive insurance explained. Learn when to use a Contractual Liability Insurance Policy, a captive, or a hybrid CLIP + captive model across industries.