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Creating Exclusions

Manufacturers, dealers, and suppliers must implement provisions in their product warranties to limit liability when a product is altered after purchase. Doing so helps to limit fraudulent and unnecessary warranty claims. The alteration of the product constitutes a modification and thereby changes and often voids the standard warranty coverage. When you create a warranty policy, one of the primary tasks is to establish guidelines for the policy, which involves specifying what is and what is not covered under the terms of the policy and what conditions constitute an exclusion, thereby limiting coverage for excluded conditions. Some of exclusions that you can create include:

• Neglect, misuse, or abuse
• Environmental causes, for example, rust, corrosion, or acts of nature
• Damage or failure caused by aftermarket parts or equipment
• Failure to perform the manufacturer's suggested maintenance
• Odometer alteration

To create an exclusion

1. Navigate to the Administration - Service screen.
2. Click the Exclusions view tab, and then click New.
3. In the Name field, enter a name for the exclusion, for example, CustomerAlteration.
4. In the Description field, enter a description for the exclusion, for example, After-Market Product Installed.