what makes cap the best?
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a different approach   |   a different philosophy

When hiring a Third Party Administrator (TPA) to start and run an appliance warranty program for a company, the company’s reputation is being used to sell the program. The last thing the company wants to do is hire a TPA that damages the reputation of the company. But when a company hires a TPA that does not live up to the expectations of its customers and servicers doing the work, then the reputation of the company is damaged. Customers expect that all the parts inside of the appliances are covered, that they are protected against pre-existing conditions, and that they can receive preventive maintenance.

Most TPAs, historically, come from a background where they collect all their revenue upfront. The best example is Point-of-Sale (POS) warranties in which one or more years’ premium is collected for an extended warranty on a brand new appliance. If the customer is not happy, the TPA does not really care. The TPA will probably never have a relationship with the customer again and the TPA already has the money. Offering a program that runs month-to-month requires a totally different mind-set which requires more care and better customer service to keep the customer happy by providing value from month-to-month. CAP’s history and experience is in the month-to-month environment.

CAP realizes that when customers buy protection, they want protection without worrying about exclusions. CAP protects all parts within the sheet metal skin of the appliance. CAP only has four exclusions and they are for abuse (six year old boy jumps on the open dishwasher door), cosmetic damage, unsafe/code violations, and finally, acts of God covered by their homeowner’s insurance (tornado, fire, etc).

CAP knows that customers want to receive value from the program each year. Providing value increases customer retention, and to provide this annual value, CAP provides a once a year preventive maintenance check on the heating and cooling system. The preventive maintenance check can either be done in the spring or fall, depending on the customer’s preference. Most larger heating and cooling companies already offer and push these types of programs (called service contracts or service agreements), so many retail consumers are already aware of this service.

CAP knows that the customer does not like to pay a deductible and that Servicers do not like to collect them. The CAP program is structured and priced so that a deductible is not part of the program.