Extended Warranties
Extended warranties are one of the most common protection products you can offer through Umbrella. These plans allow you to cover manufacturing defects and product failure beyond the standard warranty period — while generating margin on each sale and maintaining full control over pricing, terms, and customer experience.
What Is an Extended Warranty?
An extended warranty provides protection against product defects or functional failure after the base (OEM) warranty expires. This coverage is ideal for products where long-term reliability matters — such as electronics, tools, furniture, or appliances.
Extended warranties can be sold at checkout or as post-purchase upsells, and Umbrella tracks the lifecycle of each policy automatically.
What It Covers
You define exactly what’s covered when creating your plan. Common coverage terms include:
- Manufacturing defects
- Electrical or mechanical failure
- Malfunction during normal use
- Failed components (e.g., battery, motor, circuit board)
Optional exclusions can include:
- Cosmetic damage
- Normal wear and tear
- User-inflicted issues (covered under Accident Protection instead)
How It Works
Plan Creation
When creating a new extended warranty plan:
- Go to Warranties > Create Plan
- Select Extended Warranty as the plan type
- Define terms:
- Plan name (e.g., “2-Year Extended Protection”)
- Coverage description
- Pricing per term (flat rate or percentage)
- Covered issues and exclusions
- Set claim requirements (photo, video, description)
- Choose how claims are resolved (reship, credit, repair)
Product Assignment
You can apply extended warranties to:
- Specific products
- Entire collections
- Brands
- Tagged items (e.g.,
electronics,premium)
Customer Experience
- Customer sees warranty offer during checkout or post-purchase
- Chooses a 1-year, 2-year, or multi-year plan
- Umbrella tracks the order, activates the policy when fulfilled
- Customer submits a claim if the product fails during coverage window
- Your team approves, denies, or auto-resolves the claim
- Umbrella handles fulfillment of resolution (credit, replacement, etc.)
All warranty policies and their claim status are visible to the customer via your branded portal.
Claim Rules & Resolution Options
You can define:
- Claim window
Automatically calculated based on shipping date or purchase date. - Auto-approval logic
Approve all claims under a certain value, or only approve specific issue types. - Resolution method
Choose default action:- Issue store credit
- Reship product
- Generate repair label
- Let customer choose
Analytics & Reporting
Track performance of your extended warranty plans from the dashboard:
- Attachment rate by product
- Revenue vs. claims paid
- Expired warranties (pure profit)
- Claim approval rate and average resolution time
You can segment this data by plan, product, or claim type to identify top-performing offers.
Best Practices
- Offer at least two term options (e.g., 1-year and 2-year) to encourage upsell
- Use “charm pricing” to round variable pricing to .99 or .00
- Start with auto-approval for claims under $100 to streamline operations
- Include extended warranty in abandoned cart and post-purchase flows