Navigate warranty compliance in all 50 states.

Warranty compliance refers to the regulatory requirements that govern the sale of service contracts and extended warranties in the United States. Each state has its own set of laws dictating who can sell service contracts, what insurance is required, how funds must be held, and what disclosures must be made to consumers. Proper compliance protects your business, your customers, and your reputation.

An obligor is the entity contractually responsible for fulfilling the terms of a service contract — meaning they guarantee claims will be paid. You can either become your own obligor (giving you full control and maximum profit) or “rent” a third-party obligor (faster to launch but you share revenue). We analyze your business model, volume, and growth goals to recommend the right path and handle all the registration either way.

CLIP stands for Contractual Liability Insurance Policy. It’s an insurance policy from a licensed carrier that backs the obligor’s contractual obligations under service contracts. Most states require either a CLIP, a funded reserve account, or a surety bond as financial security. We secure CLIPs from A-rated insurance carriers on a state-by-state basis, ensuring your program meets every state’s financial security requirements.

Most states require service contract providers (obligors and/or administrators) to register with a state regulatory body before selling service contracts to residents of that state. The registration process varies by state and typically includes submitting applications, providing proof of financial security (CLIP, bond, or reserve), filing your terms and conditions for review, and paying registration fees. We handle the entire process — initial applications, filings, and ongoing renewals.

Selling service contracts without proper state registration can result in cease and desist orders, program shutdowns, consumer lawsuits, and reputational damage. Some states treat unregistered service contract sales as unlicensed insurance activity, which carries additional consequences. The cost of compliance is far less than the cost of operating without it.

When you rent a third-party obligor, they take on the contractual liability and state registrations on your behalf. This is faster to launch but means you typically share a percentage of revenue with the obligor. When you become your own obligor, you register directly with each state, secure your own CLIP, and maintain your own compliance — but you keep 100% of the profits and have full control over your program. We help you evaluate both paths and execute whichever one makes the most sense for your business.

Most states require annual renewals, which include updating your registration, submitting financial reports, paying renewal fees, and confirming your insurance coverage is still active. Some states also require mid-year reporting. We track every deadline across all 50 states and handle all filings, renewals, and fee payments on your behalf — so nothing ever lapses.

Absolutely. Whether you’re launching a new program or already selling warranties, we can step in at any point. For existing programs, we start with a compliance audit to identify gaps, then bring everything into full compliance across all states. We also take over ongoing management — annual filings, regulatory monitoring, and reporting — so your team can focus on selling.