Surety bond for warranty

[roy481]

If a company has a product they are selling to multiple users. Is there a surety vehicle that will cover the warranty of the product?

If anyone has any information please respond.

[Riskwriter]

Hey Roy-

Not that I'm aware of- We are able to get our hands on goofy obligations like 3-5 year maintenance (which is similar to warranty work)

but if it's anything specailized, Data/Software writing - no thanks. The more general the trade the better....

...but I don't think that's what your're looking for.

[roy481]

As I UNDERSTAND THE SITUATION. a PROVIDED OF CELL PHONES IS LOOKING FOR A BOND TO COVER THE WARRANTY PROVISION OF THE CELL PHONE.

[Riskwriter]

The only issue with that, would be, the principal would be a large one with only corporate indemnity availible. We need personal indemnity in all instances.

Do you know how long the Maint./Warranty agreement is for?

[LJKnight]

Is there a product which could provide a backup to an insured's own warranty program (which they have reserved for) - but would simply serve as a formalized agreement (with the bonding company) that would assure the customer of the seller's ability to honor the warranty if needed? The product is a concrete admixture that makes concrete hydrophobic (waterproof). There are enough "outs" in the warranty itself, that the possibility of claim is fairly low anyhow.

[roy481]

i think what you are really talking about is a "financial guarantee bond'. this would assure the custoimer that the supplier/installer of the concrete can and would make their warranty good.

This is an extremely high risk bond and would probably require 100% collateral of the amount needed to cover this situation.

As a side note. My company will not write these types of bonds.

[Surety Guy]

As Roy stated, Financial Guarantee bonds are extremely difficult to place. Most agencies (including mine) do not write them, as our sureties are not interested. If you asked the same question a couple years back the answer would have been different, but we are currently in a conservative bond market. I would try to point you in the right direction, but I don't know of anyone that writes them any more.