2026-03-22

How to write warranty terms that protect your business

Clear warranty terms prevent disputes. Here's what to include for hardware and installation businesses.

Warranty disputes are one of the biggest margin killers for hardware and installation businesses. Most of them happen because the terms were vague or the customer's expectations weren't set upfront.

What to include

What's covered. Be specific. "Defects in materials and workmanship" is standard. List the specific components covered. For an installed system: panels, inverter, mounting hardware, wiring — whatever you warrant.

What's not covered. Damage from misuse, neglect, unauthorised modification, acts of nature, normal wear and tear, cosmetic damage. List it explicitly.

Duration. Product warranty vs labour warranty. Common split: 5-10 years on product, 1-2 years on labour/installation.

Process. How to make a claim. Email? Phone? What information is required? Photos? Timeframe for assessment and resolution.

Exclusions. Installation by unauthorised parties. Use outside of specifications. Failure to follow maintenance requirements.

Limitation of liability. Your liability is limited to repair, replacement, or refund of the product — not consequential damages.

Template structure

One page. Plain language. Included with every quote and invoice. Customer signs acknowledging receipt.

This isn't legal advice — get your specific terms reviewed by a lawyer. But having something is vastly better than having nothing.

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Further reading

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