Definition

Covers financial losses if a product you sell causes injury or damage. It protects businesses from costly lawsuits related to product defects.

What to consider

  • Understand what services are included.
  • Review the duration of the plan.
  • Compare costs with expected repair expenses.

Real world scenarios

  • A company offered a service protection plan to cover repair costs on installed equipment.
  • An appliance retailer sold a service protection plan that extended warranty coverage.
  • A customer purchased a service protection plan for his computer to cover technical support and repairs.

Related terms

Insurance & Financial Protection