Coverage Options
Configure which types of damage, loss, or defect your warranty plan covers.
Coverage Options
Coverage options control which types of incidents your warranty plan protects against. When a customer files a claim, only categories matching your enabled options are available.
Dashboard → Warranties → Create/Edit → Terms of Coverage
Extended Warranty / OEM Warranty Coverage
These plan types have five coverage toggles:
| Coverage Option | Default | Description |
|---|---|---|
| Manufacturer Defect | On | Defects in materials or workmanship present at time of manufacture |
| Accidental Damage | On | Unintentional physical damage caused by the customer (drops, impacts) |
| Wear and Tear | Off | Gradual deterioration from normal everyday use |
| Spill or Stain | Off | Damage from liquid spills or staining |
| Lost or Stolen | Off | Complete loss or theft of the product |
Extended/OEM Warranty — Coverage Toggles
Manufacturer Defect — Defects in materials or workmanship
Accidental Damage — Drops, impacts, spills
Wear and Tear — Normal everyday deterioration
Spill or Stain — Liquid damage or staining
Lost or Stolen — Complete loss or theft
Note: Wear and Tear coverage can increase claim rates. Consider your product durability and pricing before enabling.
Warning: Lost or Stolen coverage carries the highest fraud risk. Consider enabling AI Fraud Detection and Photo Evidence requirements in your claims rules when offering this coverage.
Shipping Protection Coverage
Shipping Protection plans use three shipping-specific toggles instead:
| Coverage Option | Default | Description |
|---|---|---|
| Lost | On | Packages lost in transit with no delivery confirmation |
| Stolen | On | Packages marked delivered but stolen before retrieval |
| Damaged | On | Products arriving with visible shipping damage |
Shipping Protection — Coverage Toggles
Lost in Transit — No delivery confirmation
Stolen / Porch Piracy — Delivered but not received
Damaged in Shipping — Visible shipping damage
How Coverage Affects the Claim Form
When a customer files a claim, the claim type dropdown only shows options that match the coverage types enabled on their policy. For example, if you disabled “Lost or Stolen” on a plan, that option will not appear in the claim form.
Customer Claim Form — Available Claim Types
What happened?
Select claim type ▾
Manufacturer Defect
Accidental Damage
Wear and Tear (not covered)
Lost or Stolen (not covered)
Best Practices
- Start conservative. Begin with Manufacturer Defect and Accidental Damage. Add more options as you understand your claim patterns.
- Price accordingly. More coverage means more potential claims — ensure your pricing accounts for each enabled type.
- Monitor claim rates. After enabling new coverage types, watch your claims dashboard for changes in volume and approval rates.
- Pair with claims rules. Combine high-risk options (Lost or Stolen, Spill or Stain) with evidence requirements and fraud detection.
Related
- Creating Warranty Plans — Set up the plan identity and type
- Coverage Terms — Configure duration and pricing for each tier
- Claims Rules — Set evidence requirements and claim limits
- Resolution Rules — Configure auto-approval and credit settings