Equiguard Warranty Company Emerges From Bankruptcy

March 29, 2010
/ Print / Reprints /
ShareMore
/ Text Size+

In August 2009, Equiguard Inc. announced that it would seek bankruptcy protection in filing for Chapter 11 reorganization due in large part to a dispute with its insurer. Equiguard’s business at the time of filing was experiencing solid growth from the previous year. The company assured its customers that the extended service agreements currently in the market would be honored by Assurant Solutions Inc., the former insurer used by Equiguard.

As the Chapter 11 legal wheels began to turn, there were a few bumps in the road as some claim checks were returned marked as nonsufficient funds (NSF). According to the company, the checks should have been marked account frozen and not as NSF. The rules under Chapter 11 filing prevented Equiguard from paying any of its pre-bankruptcy obligations without Bankruptcy Court approval.

With those bumps now behind them, Equiguard president Craig Funke recently told The NEWS that everything is again moving full-speed ahead.

Funke said, “Frankly, the loss ratios in the HVAC warranty business have been very challenging for a while, which goes to show extended warranties are of great value to consumers, but certainly this business is not for the faint of heart. No other company has ever gone this long in the warranty business in the HVACR industry. We are here to stay, and the reorganization enables us to continue to protect our customers’ extended warranty programs. We have been acquired by H.I.G. Capital with over $7.5 billion in capital under management. We will now be part of Service Net, which is the premier administrator of service warranty programs for some of the world’s largest and most respected brands.

“It is important to note that filing Chapter 11 allowed us to continue to insure our customers’ agreements through the reorganization process,” said Funke.

For more information, go to www.equiguard.com.

Publication date: 03/29/2010

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Mike Murphy

You must login or register in order to post a comment.

Contractor Payments

David
March 30, 2010
Does this mean that Equiguard will pay the hundreds of outstanding claims for warranties contractors purchased in the past or does it mean that contractors and consumers are left holding the bag for agreements purchased prior to the bankruptcy filing? We sold many systems with Equiguard agreements and Equiguard has not paid our claims for warranty work we performed.

NOT EVERYTHING MOVING "FULL SPEED"

JAMY
March 30, 2010
EVER HEARD OF PROTECTION PLUS? I STILL CAN SELL THE EXTENDED WARRANTY. SO HOW IS EVERYTHING MOVING FULL SPEED? BUT PAR THE COURSE, WASN'T ANYTHING GREAT BEFORE THE FILING. PEOPLE THERE DIDN'T KNOW MUCH ABOUT THERE OWN PRODUCT. THANKS RUUD FOR TURNING IT OVER TO THESE PEOPLE. WAY TO GO!

they will fall

Lorne
March 30, 2010
No one will trust them anymore. The only paid a portion of the claim so no one will take that chance again.

Equigard Inc. Chapter 11 Bankruptcy Reorganization

George
April 2, 2010
As a Mechanical Contractor i recently referred a fellow Mechanical Contractor to Equigard Inc.However i was afronted and embarassed over the phone when i saw that Equigard was in Bankruptcy.As a result i had to apologize to the contractor.Equigard should have paid these warranty claims to the contractors they did business with.My company was registered with Equigard but did no business with them however because i had an uneasy feeling about the company.I hope that Service Net has resoved these problems and can restore Contractor Confidence and the public at large.

Quality company makes it thru tough times

Jim C
April 2, 2010
Equigard is another quality company that got caught up in challenging times. How many guys we all know have had the banks pull the rug right out from underneath them? Bankruptcy is challenging because you cant just cut checks as you would normally. Its slow and bureaucratic. The fact theyre now out of it with financial backing says a lot about their team and their future.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con