Feature in Warranty Week: Breaking Down Risk Management Options
Jimmy Bynum, Founder and CEO of Alexander & Preston, was featured in Warranty Week with an article on Extended Protection Plans: Breaking Down Risk Management Options. This is the second article in the series on extended protection plans. Read below for an excerpt from the article:
As detailed in the previous article, business-to-business extended protection plans are valuable risk management mechanisms that not only help manage the cost of ownership, but support a more integrated relationship between the dealer and customer. When optimized, these plans create a circular economy, providing both direct and indirect value for manufacturers, dealers, and customers.
When it comes to managing the liabilities associated with warranties or extended protection plans, there are three options:
- Leave it on your balance sheet, essentially self-insuring;
- Insure it through a third-party insurance company; or
- Establish a captive insurance company.
This article explores the advantages and disadvantages of each option and draws insight from experts in the field to provide a complete picture of the ways to manage liabilities.
About Alexander & Preston
Alexander & Preston is a leading extended protection plan service provider offering specialized risk management solutions to manufacturers, distributors and dealers of commercial and industrial products. Alexander &Preston partners with companies using enhanced analytics to calculate risk and quantify quality and reliability issues. By implementing extended protection plans and alternative forms of risk management, including captive insurance entities, Alexander & Preston drives value across the product life cycle. Change what you think is working for you at alexanderpreston.com.