Extended Service Plans Explained

Extended service plans (ESP or ESA) are made available to buyers and owners of durable goods. ESPs are also known as protection plans, extended warranties, or service contracts and can take various shapes and forms. ESPs provide coverage beyond the underlying manufacturer’s warranty and can vary by product. The most typical coverage is for mechanical or electrical failure. In addition, there can be additional coverage and benefits, such as accidental damage from handling (ADH), food loss, or power surge, depending on the product and ESP chosen.

Third-party Administrator

QuickCover® uses third-party administrators appointed by the insurer to deliver a customer experience that is second to one. The administrator will manage the entire life cycle of the customer claim to ensure satisfaction is achieved each step of the way. This administrator is a named entity in the terms and conditions and is fully integrated as a part of the QuickCover® experience.

Underwriter

QuickCover® partners with industry-leading insurance carriers to provide a fully compliant, underwritten ESP for your customers that covers a wide range of products that will deliver top-notch service and protection. The insurance carriers are listed by name in the terms and conditions each customer receives as a part of the purchase of the ESP.

Pricing

The pricing of the ESP has three main components:

1. Retail Price: This is the price the consumer pays for the ESP.
2. Merchant Price: This is the price you, the merchant, will pay for each ESP sold via QuickCover®. Think of this as analogous to the wholesale price you pay your other suppliers.
3. Merchant Margin: This is the difference retained by the merchant between the Retail Price and the Merchant Price.

How to Set Pricing

QuickCover® will provide the Merchant Price based on the product category and coverage. In addition, we will provide a recommended Retail Price for each ESP. You can use this recommendation or customize your offering by adjusting the Retail Price. The Retail Price will display in the app extension in your store.

Plan Categories

QuickCover® provides a wide selection of product categories to choose from:

• Consumer Electronics
• Laptops/Desktops
• Tablets
• Televisions
• Mobile phones
• Appliances
• Commercial Appliances
• Lawn & Garden
• Outdoor Equipment
• Sporting Goods
• Musical Instruments
• Jewelry

Coverage

Depending on the product, there are variations in the coverage that is provided. The following are the typical coverages that are included as a part of the ESP:

• Replacement Coverage - Lower-priced products will be considered replacement items. In the event of a claim on these items, the product may be replaced.
• Repair Coverage -This type of coverage applies to products in which a repair makes sense to rectify the issue that is occurring with the product.
• Accidental Damage from Handling (ADH) – This coverage goes beyond the failure of the product. This includes accidental drops, spills, etc., that may occur in the handling of the product by the owner. This can result in damage that affects the function of the product.
• Food Loss – This coverage is a part of an appliance product in which the failure of the product creates a scenario in which the food contained within the appliance becomes spoiled.
• Power Surge Protection – This coverage adds protection in the event a surge occurs to a plugged product resulting in the failure of that product.

Each type of coverage will have specific exclusions, limits, and other conditions. Terms and conditions can be viewed by the customer before the sale and will also be provided separately after their purchase.