Who handles your warranty when the installer goes out of business?
A few years ago you paid a company to install a new roof, furnace, water heater, or set of windows, and it came with a warranty. Now something has gone wrong, and the company that installed it has closed. Who is supposed to fix it?
The answer usually depends on which warranty covers the problem. This explainer covers the difference between product and workmanship warranties, who to contact when the installer is gone, and what other options may exist. It is general information, not legal advice.
KEY TAKEAWAYS
- Many installations come with two separate warranties: the manufacturer’s warranty on the product and the installer’s warranty on the workmanship.
- A manufacturer’s warranty usually stays in effect when the installer closes, but check its conditions, such as registration or labor coverage.
- An installer’s workmanship warranty is only as strong as the business behind it. Once the business is gone, there may be no one left to honor it.
- Depending on your state, a contractor license bond or a state recovery fund may help cover bad or unfinished work by a licensed contractor.
You may have more than one warranty
Many installed products come with at least two separate promises. The manufacturer warrants the product itself against defects. The installer may separately warrant its own work. Some customers also buy an extended warranty or service contract, which the Federal Trade Commission notes is a separate purchase and not the same thing as a warranty.
| Type | Who stands behind it | What it usually covers | If the installer closes |
|---|---|---|---|
| Manufacturer’s warranty | The company that made the product | Defects in the product itself, such as a failed part. Labor may or may not be included. | Usually still valid. Contact the manufacturer directly. |
| Workmanship warranty | The installer or contractor | Problems caused by how the product was installed, such as leaks or improper connections. | Often has no one left to honor it, unless a buyer of the business took it on. |
| Extended warranty or service contract | Whoever the contract names as responsible, which may be a third-party company | Repairs or maintenance listed in the contract, for an extra cost. | May continue if a separate company backs it. Check the contract. |
General patterns only. The terms of your own warranty documents control what is covered.
The manufacturer’s warranty usually survives
A manufacturer’s warranty is a promise from the manufacturer, not the installer, so it generally stays in effect when the installer closes. Contact the manufacturer directly using the information in the warranty or on the product label. Have the model number, serial number, and installation date ready.
Before you call, check the warranty’s conditions:
- Registration. Some warranties require the product to be registered, or give longer coverage if it was. The FTC notes that you may need to return a registration card to get warranty service. Ask the manufacturer whether your product is on file.
- Parts versus labor. Many product warranties cover replacement parts but not the labor to install them. The installer may have provided the labor coverage, which can disappear when the installer closes.
- Installer requirements. Some warranties require installation or repairs by an authorized or certified contractor. Ask the manufacturer for a list of authorized service providers in your area.
- Transfer rules. If you bought the home after the installation, check whether the warranty transfers to new owners.
The installer’s workmanship warranty is harder
A workmanship warranty is only as good as the business behind it. If the installer has closed and no one took over its obligations, there may be no one left to honor that promise. A few situations can change that:
- The business was sold. A buyer may have agreed to take on existing warranties, or may honor them to keep customers. Ask whoever is now operating under the name or phone number.
- The business filed for bankruptcy. A warranty obligation usually becomes a claim in the bankruptcy case. Watch the case notices for a claims deadline. Our explainer on gift cards in bankruptcy explains how consumer claims are usually handled.
- The installer was one of several companies. Some products are sold by one company and installed by a subcontractor. The seller may still be responsible under your contract.
Other options for bad or unfinished work
If the problem is with the installation itself, some states provide protections that do not depend on the business still operating, usually only for work done by a licensed contractor:
- Contractor license bonds. Many states require licensed contractors to carry a bond. In California, for example, consumers file a claim directly with the surety company that issued the contractor’s bond, which can be found on the contractor’s license record on the Contractors State License Board website.
- State recovery or guaranty funds. Some states run funds that repay homeowners for certain losses caused by licensed contractors. Maryland’s Home Improvement Guaranty Fund covers actual losses from unworkmanlike, incomplete, or abandoned work by a licensed contractor, up to $30,000 per claimant, with a three-year filing deadline. Virginia’s Contractor Transaction Recovery Fund requires a court judgment against a licensed contractor for improper or dishonest conduct, not a simple breach of contract.
Look up your installer’s license with your state’s licensing board, and check whether your state has a bond or recovery fund. Our state legal resources page links to official consumer offices in every state. If your issue is a contractor who closed before finishing the work, or one who took a deposit and never started, see our explainer on a contractor who took your deposit.
What to do now
PAPERWORK TO FIND
- Your contract and invoice from the installer
- Any warranty certificates, from both the installer and the manufacturer
- The product’s brand, model number, and serial number
- Proof of payment and the installation date
- Any permits or inspection records for the job
- The installer’s license number, if your state licenses that trade
- Document the problem with dated photos or video before anything is repaired.
- Contact the manufacturer about the product warranty and ask for an authorized service provider.
- Check what happened to the installer: whether it was sold, filed for bankruptcy, or simply closed. The state business registry and licensing board can help.
- Get a written repair estimate that describes the cause of the problem, especially if it may be an installation defect.
- Look into a bond or recovery fund claim if a licensed contractor did the work and your state offers one.
- File a complaint with your state attorney general or licensing board if you believe you were misled. The FTC also accepts reports at ReportFraud.ftc.gov.
For gift cards, store credit, and other things affected when a business closes, see our guide on when businesses close.
Frequently asked questions
Does the installer closing void the manufacturer’s warranty?
Generally no. The manufacturer’s warranty is the manufacturer’s own promise. Its coverage still depends on its terms, such as registration, labor coverage, and who is allowed to do repairs.
Can another company do the repair without voiding my warranty?
Often yes, but check first. Under federal rules, a manufacturer generally cannot require you to use specific parts or services to keep warranty coverage unless it provides them for free or has an FTC waiver. Some warranties still require an authorized technician for covered repairs, so ask the manufacturer before work starts.
What if I bought an extended warranty from the installer?
Read the contract to see who is responsible for paying claims. If a separate company backs it, contact that company directly. If the installer was the only party responsible, the contract may now be a claim against a closed business.
Can I sue the installer?
If the business still exists as a legal entity, you may be able to sue it, and small claims court against a business that closed is sometimes an option. If it filed for bankruptcy, an automatic stay generally stops lawsuits, and your claim goes through the bankruptcy case instead.
Sources
- Federal Trade Commission, Warranties
- California Contractors State License Board, Bond Basics
- Maryland Home Improvement Commission, Guaranty Fund FAQ
- Virginia DPOR, Contractor Transaction Recovery Fund
More coverage is in our Business & Bankruptcy section. This article is general information, not legal advice. See our Legal Disclaimer. Spot an error? Read our Corrections Policy.
