Express Warranty

What Does Express Warranty Mean?

An express warranty is a verbal or written assurance to the buyer that the merchandise meets specified standards of function, reliability, and quality. Typically valid for a defined period, it often states that the manufacturer will cover repair or replacement costs if the product fails to meet these standards. In the context of insurance, an express warranty functions similarly to a policy, providing coverage for defects or damages to an asset.

Insuranceopedia Explains Express Warranty

An express warranty may be provided on the product label, indicating that the manufacturer will repair or replace the product in case of defects in workmanship or materials. Alternatively, it could come in the form of an advertisement, sign, or verbal assurance about a product that the buyer relies on when making a purchase.

For example, if a customer visits a home improvement store and asks the salesperson for acid-resistant floor tiles for use in a commercial kitchen, but the salesperson instead sells them ceramic tiles, guaranteeing they are acid-resistant, an issue may arise. If the customer later finds out the tiles are not acid-resistant, this situation would constitute an express warranty since the customer bought the tiles based on the salesperson’s verbal assurance. In this case, the buyer would be entitled to a full refund or replacement.