Umbrella AI

Extended Warranties

Extended warranties are paid protection plans offered to customers at checkout. These plans are configured in the Plan Builder, where you define eligibility, coverage, pricing, claim logic, and resolution options.

Each extended plan is shown to customers during the purchase flow and can be customized to support multiple durations and price tiers.

Plan Name

This is the customer-facing name of the plan.

Appears on product pages and during checkout
Keep the name clear and benefit-oriented (e.g., “Extended Protection Plan”, “Damage Coverage”)
Avoid including the term length in the name, as plans can offer multiple duration options

Product Eligibility

You can include or exclude products using:

Tags
Collections
Product handles
Brands
Use exclusion rules to prevent coverage from applying to specific items (e.g., clearance items or low-value accessories)

This gives you fine-grained control over where and how plans are offered.

Coverage

Coverage defines what the plan protects against. These options appear on the customer-facing plan description and the claim submission form.

Common coverage types:

Mechanical failure
Accidental damage
Liquid damage
Electrical malfunction
Custom options, depending on industry

Only the selected coverage types will be available when a customer selects a claim reason.

Pricing Options

Umbrella supports multiple pricing models per plan. Each term option you offer (e.g., 1 year, 2 years) can have its own price.

Flat Rate: A fixed fee per coverage tier (e.g., $19.99 for 1 year)
Variable Rate: A dynamic fee calculated as a percentage of the product price (e.g., 10%)

Each pricing tier includes:

Variant title (e.g., “1 Year”, “2 Years”)
Term length (value and unit)
Price model and value

These tiers are shown as selectable options on the customer widget.

Shopify Platform Constraints

Shopify does not support dynamically calculated prices unless you're on Shopify Plus. As a result, percentage-based pricing are automatically pre-configured into fixed tiers for non-Plus stores.

For example:

If your pricing model is 10% of the product price, we generate price tiers at defined price intervals (e.g., $10, $20, $25, $35...) and associate each with a matching warranty fee (e.g., $1.00 for $10 value, $2.00 for $20, etc.).
These prebuilt tiers represent product price ranges and allow merchants to assign fixed warranty pricing per bracket.

In the Shopify product configuration, each unique combination of term and price tier is created as a separate variant. With Shopify’s 100-variant limit, using only one option (e.g., “Price Tier”) consumes all variant slots.

If you sell products that exceed the default tiers and would like custom variant tiers set up for a non-Plus store, please contact us.

Shopify Plus Support

Merchants on Shopify Plus can bypass the static tier structure entirely. Using Shopify’s Checkout Extensions API with cart transform functions, Umbrella dynamically calculates the correct warranty fee at checkout based on the actual product price and coverage rules. No tiering is required in the product setup.

Example Variant Configuration

As shown in the image:

The merchant created two term options (1 year, 2 years)
Each term includes 45 pricing tiers (based on product price)
Flat-rate and percentage-based pricing models are both supported through these discrete tiers
Inventory is not tracked, and all warranty variants are virtual (non-shipping)

This setup ensures that non-Plus merchants can still use percentage-based pricing models, albeit through tiered static variants rather than dynamic logic.