Accidental Damage Coverage
Protecting handheld and mobile devices from accidental damage from handling!
Accidental damage coverage provides simple, yet highly valuable protection for consumers' handheld and mobile products that serve as their lifeline to family, friends and colleagues. Accidental Damage Coverage is often sold as an add on coverage to traditional warranty plans such as service contract and extended warranty coverage.
Some of the largest mobile and computing brands, retailers and telcom carriers offer accidental damage coverage to help their consumers stay connected by protecting their devices from mishaps, extending the usable life of the products and driving loyalty and higher lifetime value of every consumer relationship.
Accident damage coverage is not usually considered an insurance product as coverage extends only to handheld or mobile devices. For instance, a monitor mounted on a wall isn't mobile or handheld, and therefore wouldn't be covered under the plans.
Accidental damage coverage is also not considered insurance as it doesn't protect against loss of mobile products, only damage. Loss from theft products are generally sold separately and will constitute insurance coverage in some locations.
Ultimately, accidental damage coverage is a valuable add on service that resellers can provide to consumers, extending product life expectancy while also improving revenue from the sales of warranty plans.
Typically, handheld or mobile devices qualify for accidental damage coverage, though products that are attached, for instance to a wall or to a piece of furniture aren't. Coverage extends to damage, though not loss, willful damage or damage occurring through gross misuse of the item. It supplements a manufacturer's warranty plan, though doesn't replace it.
Accidental damage coverage is usually offered on new items such as laptops, cameras, mobile smart phones and phalets, tablets, MP3 players, or headphones. It's not available, generally, for used or refurbished items and should be selected by the consumer at the point of product sale, but not more than 90 days from the purchase. In the case where the accidental damage plan is purchased post product sales, a 30-day wait period sometimes applies. A deductible is also common on accidental damage coverage warranty plans.
Accidental damage coverage fulfillment is delivered via a strategic network of highly trained and vetted service providers which put new or replacement products in your consumers' hands when they need them most. Fulfillment options range from depot repair, to advanced exchange or replacement, providing fast turn around time and awesome service experiences which drive brand loyalty.
Typically consumers with a damaged phone are required to pay a deductible, and provide proof of damage, such as a picture of a cracked screen. A replacement is sent with materials to pack their failed unit and return it to the warranty company. Other modes of fulfillment can exist, ranging from in store replacement to simply reimbursement of a specified dollar amount.
These are the most compelling reasons to offer accidental damage coverage!
| What is accidental damage coverage? | Accidental damage coverage provides for protection from accidental damage from handling and is a common addition feature of service contracts particularly on mobile handsets. |
| What is a warranty company? | A warranty company provides warranty services such as repair, maintenance or ADH on warranty plans such as service contracts and extended warranties. They may also deliver service guaranteed under a manufacturer's warranty. |
| What is a warranty plan? | A warranty plan is an extended warranty or service contract which offers extended repairs or additional features and benefits not covered by the OEM warranty. |
| What is an Obligor? | An obligor is responsible for funding obligations under warranty plans, extended warranty or service contracts. |
| What is an administrator? | An administrator is responsible for executing service obligations under warranty plans, extended warranty or service contracts. |
| What is an underwriter? | Underwriters are often obligors on warranty plans. They provide insurance which back the financial obligations of a warranty plan, extended warranty or service contract. |
| What is a warranty product? | A warranty product can be described as an extended warranty or service contract which offers extended repairs or additional features and benefits not covered by the OEM warranty. |
| What is an OEM? | OEM is an acronym for an original equipment manufacturer and is another term used for manufacturers. |
| What is an OEM or manufacturer's warranty? | OEM warranties are promises made by the manufacturer related to product performance. |
| What is an extended warranty or service contract? | Extended warranties and service contracts provide extended break fix repair service for products sold by OEMs, retailers, and service providers. They often provide additional coverages not offered by the OEM. |
| What is ADH? | ADH stands for accidental damage from handling and is a common addition feature of service contracts particularly on mobile handsets. |
| What is Theft Loss? | Theft loss is also is a common addition feature of service contracts particularly on mobile handsets that covers the loss of a device. This warranty product often includes a deductible. |
| Are service contracts insurance? | In some states and in Canada, service contracts can be considered insurance for a variety of reasons. |
| What does underwriting mean related to OEM warranties and service contracts? | OEMs must set aside a reserve or fund to cover the costs of anticipated or estimated warranty repair costs. An insurance company can step in and enable the OEM to offload this expense through insurance policies, impacting the balance sheet. |
| What is an ODM? | ODMs are manufacturers whom build components, parts or entire products for other entities, which in some cases are branded by an OEM or retailer. Warranties and extended warranties and service contracts are valuable for ODMs because they enable ODMs to provide additional value to their customer and downstream consumers through enhanced service options. |
| What is service fulfillment? | Service Fulfillment is the act of provide warranty services, including repair, maintenance, delivery and installation of products. |
