Affirmative Warranty
Updated: 29 February 2024
What Does Affirmative Warranty Mean?
An affirmative warranty is a warranty in which the quality of the item under warranty is verified before the warranty goes into effect.
Warranties are a type of insurance policy, and affirmative warranties serve the purpose of guaranteeing to both parties that the item is of the stated quality before it is insured.
Insuranceopedia Explains Affirmative Warranty
Affirmative warranties can be especially important for items that have a high value. The additional guarantees afforded by the quality check ensure help the party issuing the warranty avoid a greater loss from offering to insure defective, faulty, or damaged expensive items. Affirmative warranties also help the purchaser by providing added security and protection against buying a poor quality product.
Related Definitions
Related Terms
Related Articles
The Key Elements of an Insurance Contract
9 Hidden Insurance Perks Your Credit Card Provider Might Offer
8 Types of Insurance Most Americans Should Avoid
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Interview With Todd Taylor On Strategizing Large Group Health Insurance
Future Trends in Pain Management Billing and Insurance: Adapting to Change
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
How to Get Into the Insurance Industry With a Finance Degree