North American Equipment Dealers Association has joined forces with Specialty Equipment Insurance Services to create the NAEDA member-exclusive extended warranty program, NAEDA Protect.
This extended warranty program is geared towards making sure not only dealers, but their clients are not losing time or money due to a piece of equipment needing service, according to Edgar Gonzalez, Vice President of Sales and Chief Sales Officer for Specialty Equipment Insurance Services and liaison for NAEDA Protect.
“From the construction firms that are making holes where we make skyscrapers, these pieces of equipment, push dirt, they harvest crops, it’s important to protect them,” Gonzalez said. “It’s important to understand that our customers have made investments, and we, on the other side of that business, want to streamline the business at the dealer level. So, we are very proud of partnering and creating the NAEDA Protect brand and program because we feel that this is a virtuous and value-added product that’s going to go ahead and keep the customer, whoever that may be, up and running.”
The importance of the heavy machinery used in the agricultural and construction industries is what drives their dedication to dealers and clients.
“Ultimately, we’ve all been posed the question of, ‘Do you want an extended warranty?’” Gonzalez said. “Unless you use your vehicle to deliver pizzas or work for Uber, which there’s nothing wrong with that, but our business is quite different. So, when someone asks one of our customers that question, they do take pause, and they do think about it, because it isn’t like using your vehicle to get from point A to point B. A farmer has to plant his crops, they may have to dig a ditch, they may have to go to work… On the other side of the business, our construction customers. They have to, obviously, pour concrete and do roadwork. These are large commercial pieces of equipment. If they’re down, it costs time and money.”
According to Lou Klein, Western Regional Sales Manager at SEIS and program manager for NAEDA Protect, the white label program helps dealer members in Canada and the United States by providing protection to meet members where their needs are, by offering extended service contracts and warranties on their customers’ machines.
“One of the main things that we like to promote is that it does help drive customers back to your dealership for, you know, parts and services to handle warranties,” Klein said. “So, it’s just an all-around way for dealers to expand their business and protect their customers at the same time.”
Dealer members have the opportunity to sign up through the website – NAEDA – A Specialty Equipment Insurance Services Program (naeda-seis-program-enroll.com).
“You can quote business, you can compare prices, make your claims,” Klein said. “Everything is a one-stop shop for NAEDA members to handle this type of business for themselves.”
The program started in late summer 2022 when John Schmeiser, COO of NAEDA, and Kim Rominger, CEO, approached SEIS with the overall goal of creating a program that would help dealer members protect their clients. That led to a discussion with the Amynta Group’s Chief Operating Officer, Anthony Slimowicz, and Chief Executive Officer, Ted Wagner.
From there, they had plans put together by October and hit the ground running in November when they announced the program at the NAEDA conference in Nashville, Tennessee.
Another way dealers can take advantage of the program is by applying the warranties to their own rental fleets.
“The dealer themselves can treat themselves as the customer,” Gonzalez said. “They can go ahead and put protection on their rental fleets… let’s say that this is someone that they are very concerned about absorption costs; they have an enormous successful rental fleet. But they also have rental fleet costs. Well, we can’t speak to the preventative maintenance and the wear and tear. But what we can speak to is, of course, extended warranty portion. So maybe, obviously an item is no longer new. So, an item is not in base warranty; they can go ahead and work this plan, treat themselves as the customer add the protection they need.”
Some of the many benefits include extended service contracts, asset remarketing, in-house claim adjustments, 48-hour turnaround on claims, access to industry experts, 24/7 registration and processing portals, and so much more.
“What dealers really appreciate is our fast, quick responses to claims,” Klein said. “With an average of being paid within three days, that it’s really something that the dealers have come to appreciate knowing that we have their back, and they can go to their clients and let them know that.”
Article Written by Amanda Bauman, Associate Editor