SquareTrade

SquareTrade Inc. is an American extended warranty service provider for consumer electronics and appliances[1] headquartered in San Francisco's SoMa district.

SquareTrade Inc.
TypeSubsidiary
Founded1999
HeadquartersSan Francisco, California
Area served
United States
United Kingdom
Finland
Key people
Ahmed Khaishgi (CEO & Co-founder)
Steven Abernethy (Co-founder & Executive Chairman)
ProductsConsumer Electronics and Appliances Warranty
RevenueUS$1.32 billion
ParentAllstate
Websitesquaretrade.com (US)
squaretrade.co.uk (UK)
squaretrade.fi (Finland)

Dispute resolution services

Co-founded in 1999 by Steve Abernethy and Ahmed Khaishgi, SquareTrade launched as the first online service for resolving e-commerce disputes. Working with online marketplaces such as eBay, the company utilized an online negotiation tool to automate the dispute resolution process between sellers and buyers. Between 1999 and 2001, SquareTrade raised $15M from JP Morgan Partners, Weston Presidio Capital and Draper Richards. That same year, the company launched a merchant-verification service, the SquareTrade Seal.[2][3] Both original services have since been discontinued.[4]

Warranty services

In 2006, SquareTrade began providing consumer protection plans for portable devices, appliances, and other electronics, both on-line and through large retailers. PC Magazine listed it as number 93 in its list of the best 100 web sites of the year.[5] In 2012, Bain Capital and Bain Capital Ventures announced they were investing $238 million in the company, marking the second largest venture capital deal of the year.[6]

The company's underwriter has been AmTrust Financial Services, Inc., but as of 2013, SquareTrade was shifting toward Starr Indemnity.[7]

SquareTrade was acquired by Allstate in late 2016, for $1.4 billion,[8] joining Allstate's suite of consumer asset protection services.

Lawsuit

A class action law-suit was filed late 2016 against SquareTrade for selling protection plans to customers for products that are not eligible for coverage, where customers would only find out when filing a claim.[9]

References
  1. Ramsey, Donovan X. (May 22, 2014). "Is It Worth It to Insure Your iWhatever?". Ebony. Retrieved 27 May 2014.
  2. Collier, Marsha (2007-08-27). Starting an eBay Business For Dummies. John Wiley & Sons. pp. 106–. ISBN 9780470230312. Retrieved 27 May 2014.
  3. McGrath, Lissa (2006-01-01). 20 Questions to Ask Before Selling on EBay. Career Press. pp. 56–. ISBN 9781564148544. Retrieved 27 May 2014.
  4. Cortés, Pablo (2010-09-13). Online Dispute Resolution for Consumers in the European Union. Routledge. pp. 149–. ISBN 9781136943508. Retrieved 27 May 2014.
  5. "The Top 100 Web Sites of 2010". PC Magazine. 2010-08-16. Retrieved 2013-04-03.
  6. "Top 15 venture capital deals of 2012". Venture Beat. 2012-12-28. Retrieved 2013-04-03.
  7. "Appliance Service Contract Underwriters, 17 October 2013". Warranty Week. 17 October 2013. Retrieved 27 May 2014.
  8. "Allstate just shelled out $1.4 billion for a money-losing company". Crain's Chicago Business. Retrieved 2017-08-11.
  9. Reformado, Wadi. "SquareTrade hit with class action". Retrieved 2017-08-26.
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