SquareTrade Insurance Company Details
Steven Abernethy (Co-founder & Executive Chairman)
SquareTrade Plans details Review
SquareTrade Inc. is an extended warranty service provider for consumer electronics and appliances headquartered in San Francisco’s SoMa district.
SquareTrade 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. Both original services have since been discontinued.
SquareTrade 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. 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.
The company’s underwriter has been AmTrust Financial Services, Inc., but as of 2013, SquareTrade was shifting toward Starr Indemnity.
SquareTrade was acquired by Allstate in late 2016, for $1.4 Billion joining Allstate suite of consumer asset protection services.
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.