It’s inevitable – no matter how much care goes into production, sometimes consumer products just fail. With roughly $25 billion spent on warranty claims each year, these product failures and their accompanying customer claims are a lot for any OEM to manage on their own.

But there’s a better way. Rather than sticking with in-house claims processing, you could hand it off to a third-party OEM warranty solutions provider. Not only will you have a team of trusted experts on your side, they can also help you uncover hidden opportunities to increase revenue as well. Let’s take a closer look.

Taking care of your customers’ needs

A major benefit of outsourcing your warranty solutions to a third party is the built-in claims processing and customer service that comes with it. While important to your business, handling customer claims and related questions can be pesky and time-consuming. A great third-party provider’s contact centers, databases, and supply chain flow are designed to handle all that and more, so you can get back to doing what you do best.

Handling your risk management woes

A major part of the warranty claims process is assessing how much money to put aside in reserves to fund potential customer claims. Last year, U.S.-based manufacturers set aside $4.3 billion in warranty reserves – that’s a lot of money that has the potential to alter your balance sheets. If you enlist the help of a specialty insurance underwriter as a third-party partner, they’re there to take on your claims liability.

Surrounding you with a network of trusted partners

Choose a partner who has been in the insurance business for decades. This means that over time they’ll have built up an expansive network of trusted partners; when you partner with them, they deliver this network to your doorstep, tapping into their expertise to bring you and your customers high-quality solutions.

Products can’t be trusted to work 100 percent of the time. When they don’t, who takes care of it? As an OEM, outsourcing your warranty solutions program can give you the freedom you’re looking for and revenue potential you didn’t know you had.