---
title: "Warranty vs insurance for Shopify stores | Coverly"
description: "Warranty or insurance? Learn how a store-sold extended warranty differs from insurance, and what Coverly does and does not do for merchants who sell their own plans."
url: "https://mycoverly.app/warranty-vs-insurance"
---

# Warranty vs insurance: what a Shopify merchant sells.

An extended warranty and an insurance policy can look alike on a product page. They are not the same thing, and the difference decides what you can sell and what you have to handle yourself.

## A warranty is your promise

An extended warranty or protection plan is a promise from you, the seller, to repair or replace a product for a set period. You define the term, the price and the perks, and you honor the claim yourself or through a repair partner you choose.

This is what Coverly is built for. You sell your own plans, and the revenue is yours.

## Insurance is a regulated product

Insurance is sold by a licensed insurer or its authorized partner, and it often covers events such as accidental damage or theft. In many places, selling it requires a license and follows its own rules.

Coverly is not an insurer and does not sell, underwrite or process insurance. It does not handle claims either.

## Questions to settle before you sell a plan

The rules for selling warranties and service plans differ by country and region, so check them for the markets you sell in.

- What exactly does the plan cover, and what does it exclude?
- Who performs the repair or replacement, and who pays for it?
- What do you owe customers under consumer-protection law on top of the plan?
- Do you need to describe the plan as a service contract, or register it, where you sell?

## Where Coverly fits

Coverly handles the selling side: plan options, prices, product targeting, the product page widget, the merged cart line and the separate order item. The terms of each plan, and how you fulfil it, are yours to write and honor.

## Sell your own warranty plans.

Install Coverly, add a suggested plan and switch on the product page block. No theme code, no per-order fees. https://apps.shopify.com/coverly

Source: https://mycoverly.app/warranty-vs-insurance