Warranty Service Provider
The license requirements for warranty service providers vary by state. Some states have a general service warranty license, others have a home warranty license, and yet others have a vehicle warranty license. In some states, one license covers all three types of warranties, while in others each type of warranty requires its own license. Let LicenseLogix research, prepare, and file your warranty service provider licenses.
States regulate warranty providers for the protection of consumers. The main goal of the state is to ensure consumers are not being taken advantage of by businesses. By requiring licensure, the state is able to effectively monitor the company’s transactions. When a consumer has an issue, the state offers protection that would otherwise be unavailable if the industry were not regulated.
A service warranty is a contract or agreement whereby a service contract provider undertakes, for a specified period of time, to repair, replace, maintain, or indemnify such services. These licenses are normally governed by the state department of insurance. Most applications require documentation of a company’s reimbursement insurance policy, financial statements, and business entity formation and/or foreign qualification. The license often must be renewed annually or biennially, depending on the state. In most states, it is illegal to provide service warranties without obtaining a license at least 30-days in advance from the start of business. Please contact us regarding specific state requirements.
Ramifications of Non-Compliance
Unlicensed warranty service providers can result in criminal and civil penalties. The state may order a business to refund consumers any fees paid while operating without a license. Other penalties include high fines, cease and desist orders, permanent license revocation, and jail time.
How we help your business:
- Our comprehensive research will ensure that you are informed about all licensing requirements.
- Our specialists will work with you to help protect your business from the high risks of non-compliance.
- Let LicenseLogix prepare and file all of your licenses to save your business valuable time.
More Resources:Service Contract Industry Council
CHOOSE A STATE BELOW FOR SPECIFIC BUSINESS LICENSING INFORMATION:
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