Marine Warranty Definitions
Plain-language definitions for the terms you'll see in marine extended warranty contracts.
- Marine Service Contract
- A contract between a boat owner and a service provider covering specified mechanical and electrical breakdowns for a defined term. Often used interchangeably with 'extended boat warranty.'
- Mechanical Breakdown Coverage
- Coverage for the failure of a covered mechanical component due to defect or wear during normal use, excluding maintenance items and pre-existing conditions.
- Boat Extended Warranty
- A common term for a marine service contract that provides coverage beyond the manufacturer's original warranty period.
- Stated Component Coverage
- A plan structure that lists every covered component explicitly. If a part is not specifically listed, it is not covered.
- Exclusionary Coverage
- A plan structure that covers every factory-approved system except items specifically listed as excluded. Generally considered the broadest marine coverage structure and used in Eagle Guardian plans.
- Authorization
- Written approval from the administrator that a diagnosed failure is covered and the repair may proceed. Repairs performed without prior authorization are generally not reimbursable.
- Consequential Damage
- Additional damage caused by an initial failure — for example, damage to other components resulting from continued operation of the boat after a problem is detected. Typically excluded.
- Pre-Existing Condition
- A defect, failure, or wear pattern that existed before the marine service contract took effect. Pre-existing conditions are not covered.
- Wear and Tear
- The gradual deterioration of components from normal use over time. Wear-and-tear failures and maintenance items are not covered by marine service contracts.
- Maintenance Records
- Documented evidence of scheduled service performed on the boat and its engines. Maintenance records are often required to support a claim and demonstrate the boat was properly cared for.
- Factory-Approved System
- A component or system installed and approved by the boat or engine manufacturer. Aftermarket modifications outside manufacturer specifications are typically excluded.
- Per-Visit Deductible
- The amount the contract holder pays per repair visit, regardless of how many covered components are repaired during that visit.
- Transferability
- The ability to transfer a marine service contract to a new owner if the boat is sold. A transferable contract can increase resale value.
- Administrator
- The company that manages claims, authorizations, and payments under a marine service contract.
- Coverage Term
- The length of time, often measured in months or years, that a marine service contract remains in effect.