A business must follow the warranty it provides. It is not necessary to provide a warranty. However, if a business provides one, this post will discuss some points to take into consideration when drafting one. A Limited Warranty Statement template can be found in the shop, click here.
Who is Covered?
In a product warranty, it is important to identify who is covered in the warranty. The product warranty should clearly state who is covered. Generally, direct customers of the business will be covered. But, does the business want to include people who have received this product as a gift or purchased from someone else?
There may be times when a person receives a product used as a gift or is purchasing a used product from someone else. If the product has previously been used, the second user may not know of any problems the first user has created. If that product then fails to be used for some reason, a business may not want to provide a refund or replacement for such product.
What is Covered?
Similarly, a business should also include what is being covered. Since a business must follow their warranty, it is important to list out what is covered or what is excluded from the warranty. Generally, a business will cover products that have defects. For example, a light in a machine does not work anymore. This may be considered a defect because the product is not working as it was intended to work.
Some exclusions that businesses have included in warranties are:
- Misuse of the product
- Damages or defects because of service or repair by unauthorized service providers
- Accident, abuse, or improper/inadequate maintenance
- Damages from commercial or rental use
Time Limitations
A business should include the time limitations for their warranty. Different products may want different time limitations. Products that are less likely to come with defects or break easily may come with lifetime warranties. However, electronic products likely will have a 1 year warranty because electronics generally will not last a lifetime.
What does the customer get through the warranty?
A business should include what the benefits of the warranty is. Generally, a business will provide either a refund, repair, or exchange of the product. There is language in the warranty that allows for the business to be the sole decider of which option. In addition, the warranty can require the customer to return the product (at the cost of the business) before any of the options get processed.