Warranties, and Why They Are Important!

A Warranty is a contract agreement between a manufacturer, and an organization that promises the repair or replacement of an asset when it becomes damaged. Warranties are typically issued free of charge for a set period of time when an asset is purchased new from a manufacturer.

Warranties usually cover:
  • Problems not caused by the owner
  • Defective software
  • Damaged hardware due to normal wear and tear
Warranties usually don’t cover:
  • Replacement of lost or stolen assets
  • Data recovery
  • Damage directly caused by the owner

In IT Asset Management, warranties are extremely crucial as they cover the support needed to fix assets when they face unexpected issues. The management and tracking of all warranties is a key factor in successfully implementing and managing an IT Asset Management program. With the use of warranties, the IT Help Desk can outsource most hardware issues back to the manufacturer. This reduces the overall IT spend, and allows organizations to re-allocate resources to other issues.

Benefits of warranties:
  • Reduced IT maintenance support costs
  • Peace of mind for an organization
  • No unexpected repair costs
  • Reduced asset downtime
  • Reduced Total Cost of Ownership (TCO)


In IT Asset Management, it’s important that warranties are logged in the asset repository when assets are procured and received. This ensures that the IT Department are aware of any warranty support available.

Depending on the manufacturer, some issue warranties digitally, and others issue physical warranty cards. If you receive a warranty card for an asset, ensure it is scanned and stored in the asset repository, this will verify the warranties validity, even if the warranty card is lost or stolen.

Warranty cards usually include the following attributes:
  • Warranty Start Date
  • Warranty Duration
  • Serial Number
  • Part Number
  • Manufacturer Name


Sometimes, warranties can be voided if unauthorized repair work is carried out on an asset. Depending on the type of device, some assets include a warranty label that is applied to the edge of an asset’s chassis, if the asset has been dismantled, and the label is damaged, then any associated warranties are usually voided.

The warranty void label is used to indicate to a manufacturer that a device has been opened and possibly tampered with. This safeguards manufacturers from issuing support to organizations who may have caused damage themselves.

The terms and conditions of warranties are also very important to pay attention to. Depending on the type of warranty supplied, some manufacturers place strict terms that specify when and how an asset can be repaired whilst under warranty. For example, it is very common that laptop and computer warranties are only valid within the country of purchase, meaning if a laptop was purchased in India, but later transferred to the United States, the laptop most likely won’t be supported in the United States.