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Extended Warranties Are A Complete Scam

by in Telecom

Have you thought of purchasing an extended warranty for something you purchased?

I recently purchased a new scanner. I have been paperless for about five years now, and I can pretty much everything. I use my scanner a lot. So I thought an extended warranty may make sense.

I looked at Square Trade, Assurant, and SmartGuard warranties. They have nice 4-year plans that seem to protect me from some catastrophe. The price was under $100 so I just bout purchased one.

Then, I read the contract terms. (We all do that, right?)

Let me preface that the policies are marketed on as being for “Office Equipment”. So that should set the background.

Now, consider that all of the following are specifically EXCLUDED from coverage:

  • Products intended for Commercial Use.
  • Any non-residential use; including rental, business, educational and institutional, but not including heavy industrial use.
  • Excludes: non-operating / non-power-driven part; including but not limited to: plastic parts or other parts connectors

If this was not clear enough, there is this language:


It also states that coverage is only for “products not intended for Commercial Use”.

Got that?

So these warranty companies are selling a policies for “Office Equipment” valued at up to $699. But then any equipment intended for commercial use is excluded. What sort of “office equipment” would not be intended for “commercial use”.

Oh, and I called one of the companies and asked about certain failures such as the “non-operating non-power driven” exclusion. Would the paper rollers be covered? (No, they are plastic parts.) Would the sheet feed mechanism be covered? (No, it’s a plastic part.) Would a broken paper guide be covered? (Again, plastic part.) So what exactly is covered? Perhaps the USB connector? (Nope, connectors are specifically excluded.)

It’s hard to accept that an extended warranty for “office equipment” would be offered in good faith with an exclusion of any equipment intended for “commercial use.” Isn’t office equipment inherently intended for commercial use?

Its a scam. It’s a full-on total and complete, unqualified, scam.


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About this Post


Colin Berkshire is a highly technical HR executive in the Pulp and Paper Industry. Colin has an engineering and voice background, and is currently on assignment in Asia. NOTE: Colin does not respond to comments, and does not Tweet.