Roundstone’s Warranty Captive is a turnkey self-insurance program with fronted and/

or excess coverage for a variety of extended warranties and/or service contracts.

The program is uniquely designed for manufacturers and dealers of goods offering

extended warranties and/or service contracts. These companies will retain estimated

claims in their own captive segregated account and have the option of purchasing

coverage excess of estimated losses. Companies work with experienced claims and

risk management consultants to administer their retained liability.

Coverage for Extended WarrantiesWarranty Captive

Program Benefits• Return of underwriting and investment income on premium

• Control over insurance policy language, coverage, pricing, claim adjudication, loss

prevention programs

• Regular, accurate reporting of warranty income and expense

• Product insight through accurate detailed warranty claim information

• Access to third party reinsurance at wholesale rates

• Removal of warranty liability from operating company balance sheet – useful in

circumstance of company sale

• Accurate timing of warranty expense with revenue

• Establishment of insurance facility where assets can be leveraged for operating company

exposures not otherwise insured or those where a retention would be financially attractive

• Cash flow advantages available through accelerated premium deductions

Program Eligibility• Manufacturer or dealer issuing greater than $750,000 of annual warranty premium

• Retention of estimated annual losses in authorized captive insurance company

• Two years of extended warranty premium experience

• Two years of warranty expense data with part and equipment detail

• Claims administered by approved TPA with industry and equipment expertise

• Existing management software and IT capable of detailed reporting functions

TURNING RISK INTO RESULTS

27887 Clemens Road, Westlake, Ohio 44145440-617-0333 | www.roundstoneinsurance.com

Coverage for Extended WarrantiesWarranty Captive