US Warranty Closed: What Marine Dealers and F&I Teams Should Do Next

Aerial view of a wakeboat towing a wakeboarder

If your dealership offered service contracts through United States Warranty Corporation (USWC, often called US Warranty), you have likely spent the last several weeks fielding calls from customers who want to know if they are still covered, F&I managers who want to know what to put in front of the next buyer, and lenders trying to understand what this means for the deals they fund.

Here is what is known, what dealers can do today, and how to keep protection on the menu.

What Happened to US Warranty

According to the Better Business Bureau, United States Warranty Corporation, based in Madison, Ohio, ceased all business operations on September 1, 2026, citing financial constraints, and its BBB profile now carries an out-of-business alert.

The company had been in business since the 1970s and offered service contracts for RVs, motorhomes, and marine watercraft, sold through dealers.

The BBB notice states the company advised that service contracts may be backed by a contractual liability insurance policy through a third-party insurer, and that contract holders should check the registration page of their contract for insurer contact details.

What It Means for Existing Contract Holders

This is the first question your customers will ask, so give them a clear, careful answer:

  • Point them to their paperwork. The registration page of their contract should list the insurer that backs it, if one exists.
  • Contact the insurer directly. At least one marine lender, RecLending, has reported that USWC contracts it is aware of are backed by Technology Insurance Company, which it says is handling claims at 1-866-505-4048. Customers should confirm their own contract's backer before relying on this.
  • Keep records. Customers with unresolved issues can file with the BBB and their state Attorney General.

Your service department and the local repair shops your customers use are going to be the people who see these boats first. Keep them in the loop so they know who to call for authorization.

What It Means for Your F&I Menu

The bigger long-term issue is the gap on the menu, because many dealers relied on one provider for marine service contracts, and when that provider goes away, the next customer at the desk still needs an answer to the question, "What happens if my motor breaks?"

This is a good moment to look at the whole protection lineup, not just replace one product with another. A few questions worth asking:

  1. How is the provider backed? Ask who stands behind the obligations, and get the answer in writing.
  2. What happens to customers who say no? Traditional marine service contracts often run $5,000 to $7,000, so a large share of buyers decline or find the deal structure does not leave room, and those customers leave with nothing.
  3. Does the product keep producing after the sale? A one-time contract pays once, while a monthly product can keep producing long after delivery.

A Boat Service Contract Alternative for Buyers Who Say No

LAUNCH Boat Protection was built for the buyer who declines or does not qualify for a traditional marine service contract.

It is a monthly protection plan, at about $39 per month, that reimburses covered breakdown repairs on the boat's motor and electronics, both mechanical and electrical.

What dealers should know:

  • Batteries are covered on Day 1, while most other coverages have a 45-day waiting period.
  • It is breakdown protection, so it does not cover accidents, collisions, ramp mishaps, towing, or weather, and that clarity makes it easy to explain at the desk.
  • It is not insurance; it is a protection plan that reimburses covered repairs.
  • It works with the shops your customers already trust, treating repair shops as partners in getting boats back on the water.
  • Availability: LAUNCH is not sold in California or Massachusetts.

Why Dealers and Partners Offer LAUNCH

LAUNCH does not replace your full service contract offering; it fills the gap that sits beside it.

When a buyer passes on a $5,000+ contract, the F&I manager has a simple second option at about $39 a month. One partner agreement lets your dealership, dealer group, or lending program offer LAUNCH across your customers, producing repeat monthly signups instead of a single transaction.

For marine lenders, it is a low-friction way to help borrowers protect the asset you financed, without adding to the loan amount.

Steps to Take This Week

  • Prepare a short script for staff answering calls from former USWC contract holders.
  • Share the insurer guidance above with your service department and partner repair shops.
  • Review your marine dealer F&I products for gaps, especially for buyers who decline.
  • Talk to LAUNCH about adding a monthly option to your menu.

Frequently Asked Questions

Did US Warranty go out of business?

According to the Better Business Bureau, United States Warranty Corporation ceased all business operations on September 1, 2026, due to financial constraints.

Are existing US Warranty boat service contracts still valid?

It depends on the contract, since the BBB notice says contracts may be backed by a third-party insurer. Contract holders should check the registration page of their contract for the insurer's contact details and reach out to them directly.

What can marine dealers offer instead of a US Warranty service contract?

Dealers can review other service contract providers and add a monthly option such as LAUNCH Boat Protection for buyers who decline or do not qualify for a traditional contract. LAUNCH reimburses covered motor and electronics breakdown repairs for about $39 per month.

What does LAUNCH Boat Protection not cover?

LAUNCH covers breakdowns, not accidents, so it does not cover collisions, ramp mishaps, towing, or weather. Batteries are covered on Day 1, while most other coverages have a 45-day waiting period, and the plan is not sold in California or Massachusetts.

Meet Us at Dealer Week

We will be at Dealer Week on December 6, 2026, and if your team is rebuilding its F&I menu after the US Warranty closure, we would welcome the chance to talk there.

If you would rather not wait until December, email info@launchprotection.com or visit our resellers page at https://launchprotection.com/resellers/ to learn how to become a LAUNCH partner.

Sources: BBB Business Profile, United States Warranty Corporation; RecLending, "US Warranty Corp. Operations Discontinued".