Frequently Asked Questions:
When Does Coverage Begin and End?
FAIL-SAFE® coverage always begins at expiration of the mfg. warranty, or when indicated on dealer's Application for Protection. Coverage ends when selected term or hours expire, or when claims have reached the Loss Limit for the particular machine.
Is There a Deductible on Claims?
Residential coverages have no deductible.
Are There Limits to Plan Coverages?
Residential coverages are 100%, based on the machine Retail Selling Price reported on the Application for Protection.
Do I Have to Pay For Any Portion of a Covered Repair?
Sometimes, for example the cost of any non-covered Parts and Labor - cleaning, hauling, mileage, sales tax, environmental changes, etc. Generally minor costs other than the Parts & Labor.
What's the "Criteria" for a Mechanical Failure Being Covered?
Coverage is provided for: "the sudden failure of a component, part or assembly, as supplied by the manufacturer." (1) A breakdown must result from the failure of a covered part or component; (2) The breakdown must occur in normal use of the machine and be sudden; (3) The cause of the failure or the failed part must not appear in the Contract Exclusions; and (4) If requested, there must be evidence of proper maintenance.
What if My Dealership Goes Out of Business?
FAIL-SAFE® coverage stays with the machine and remains intact until the coverage expires. You may contact another authorized, servicing dealer at such point.
Is Coverage Transferable?
Yes. It may be transferred anytime (1) a completed Application for Transfer, (2) the original Contract, (3) proof of maintenance, (4) a copy of the bill of sale and, (5) the $30 transfer fee are received by FAIL-SAFE®. In the event of a sale or trade of a covered machine, failure to make a proper transfer will void the Contract coverage until after such time a proper transfer has been made.
How Stable is FAIL-SAFE®?
FAIL-SAFE® has been providing insured Protection Plans for equipment & machinery since 1987. FAIL-SAFE® provides coverages for nearly every brand and size of equipment available to dealers. Additionally, FAIL-SAFE® provides exceptional claims service to our dealers and their service departments. Providing Extended Protection Plans on equipment and handling claims is FAIL-SAFE®‘s exclusive and only business.