SquareTrade
| Formerly | SquareTrade |
|---|---|
| Company type | Subsidiary |
| Industry | Insurance |
| Founded | 1999 |
| Founder | Ahmed Khaishgi Steve Abernethy |
| Headquarters | San Francisco, California |
Key people | Karl Wiley (CEO, President) (2020-present)[1][2] |
| Parent | Allstate (2016-present) |
| Website | www |
Allstate Protection Plans, previously SquareTrade Inc., is a company based in the United States that provides extended warranty services for electronics and appliances.[3] It is a subsidiary of Allstate since 2016.
Early history and dispute resolution
[change | change source]Founded in 1999 by and Ahmed Khaishgi Steve Abernethy, SquareTrade began as an online service to help settle e-commerce disputes, working with sites like eBay. Its service included a verification seal called the SquareTrade Seal.[4][5] The company later stopped offering these services.
Warranty services
[change | change source]In 2006, SquareTrade started selling warranty plans for electronics and other devices, including protection plans sold through large retailers. The company gained attention and, in 2012, received a large investment from Bain Capital and Bain Capital Ventures.[6]
SquareTrade's main underwriter was AmTrust Financial Services, Inc., but it shifted to Starr Indemnity in 2013.[7]
Allstate acquisition
[change | change source]In 2016, Allstate bought SquareTrade for $1.4 billion, adding it to its range of consumer protection services.[8]
Lawsuit
[change | change source]In 2016, a class-action lawsuit was filed against SquareTrade, accusing it of selling plans for products that were not eligible for coverage, which customers found out only when they tried to make a claim.[9]
References
[change | change source]- ↑ "Karl Wiley - Allstate Corporation". allstatecorporation.com. Retrieved November 21, 2024.
- ↑ "Leadership - Allstate Protection Plans". www.squaretrade.com. Retrieved November 21, 2024.
- ↑ Ramsey, Donovan X. (May 22, 2014). "Is It Worth It to Insure Your iWhatever?". Ebony. Retrieved November 13, 2024.
- ↑ Collier, Marsha (2007-08-27). Starting an eBay Business For Dummies. John Wiley & Sons. pp. 106–. ISBN 9780470230312. Retrieved November 13, 2024.
- ↑ Cortés, Pablo (2010-09-13). Online Dispute Resolution for Consumers in the European Union. Routledge. pp. 149–. ISBN 9781136943508. Retrieved November 13, 2024.
- ↑ "Top 15 venture capital deals of 2012". Venture Beat. 2012-12-28. Retrieved November 13, 2024.
- ↑ "Appliance Service Contract Underwriters, 17 October 2013". Warranty Week. 17 October 2013. Retrieved November 13, 2024.
- ↑ "Allstate just shelled out $1.4 billion for a money-losing company". Crain's Chicago Business. Retrieved November 13, 2024.
- ↑ Reformado, Wadi. "SquareTrade hit with class action". Retrieved November 13, 2024.