Understanding Rooftop Packaged Units and Their Protection Needs

Rooftop packaged units represent a significant capital investment for commercial properties, often ranging from $15,000 to over $100,000 per unit depending on tonnage and specifications. These self-contained HVAC systems combine heating, cooling, and ventilation components in a single weatherproof housing, making them the preferred choice for approximately 60% of commercial buildings across the United States. At Integrated Warranty Solutions, we recognize that standard manufacturer warranties typically cover these units for only 5 to 10 years, leaving building owners vulnerable to substantial repair costs as their equipment ages. The specialized extended service agreement platform, strategically aligned with the financial strength and reliability of AIG Warranty 1, fills this critical gap by offering comprehensive protection plans that extend coverage well beyond standard equipment warranties.

The complexity of modern rooftop units, featuring variable refrigerant flow technology, advanced economizers, and sophisticated control systems, means that repair costs can quickly escalate when components fail outside warranty periods. A single compressor replacement can cost between $3,000 and $8,000, while control board failures often exceed $2,500 in parts and labor. We provide risk mitigation solutions utilizing extensive industry performance data accumulated over decades of experience working within the HVAC/R industry, enabling our network of client partners to offer their commercial customers peace of mind through comprehensive coverage options.

Comprehensive Coverage Components for Commercial Applications

Rooftop packaged unit coverage programs are custom-built for commercial HVAC/R applications, addressing the unique demands these systems face in North America and throughout the North America. We understand that commercial rooftop units operate under extreme conditions, running continuously during peak seasons while exposed to weather elements year-round. Extended parts and labor protection plans cover critical components including compressors, heat exchangers, fan motors, economizer assemblies, control boards, refrigerant coils, and electrical components that frequently fail after warranty expiration.

The coverage options we enable for commercial customers include both standard and enhanced protection levels. Standard coverage typically encompasses major mechanical and electrical failures, while enhanced plans incorporate preventive maintenance visits, refrigerant leak repairs, and coverage for wear items like contactors and capacitors. Cutting-edge technologies enable seamless connections to end-users, maximizing lifetime revenue potential for HVAC contractors and service providers. This technology integration allows for real-time claim processing, digital documentation storage, and automated renewal notifications that keep protection active throughout the equipment’s operational life.

Revenue Enhancement and Market Differentiation Strategies

Integrated Warranty Solutions transforms rooftop unit protection plans into powerful business development tools for our clients. By offering these coverage options, HVAC contractors and commercial service providers create product distinction and market differentiation that sets them apart from competitors who only provide basic installation and repair services. Multi-year campaigns, including subscription offerings, keep your brand at the forefront of customer consciousness while generating recurring revenue streams that stabilize cash flow throughout seasonal fluctuations.

The IWS advantage provides substantial revenue expansion opportunities by creating additional touchpoints during the product life cycle. When contractors offer our protection plans at the point of sale, they typically see attachment rates between 25% and 40%, with average contract values ranging from $800 to $3,000 annually per unit. These programs also enhance the consumer experience and promote retention by establishing long-term relationships that extend far beyond initial equipment installation.

Implementation Process and Support Infrastructure

We make protection plan programs simple, scalable, and service-driven through our fully-managed solution that handles all administrative complexities. The implementation process begins with analyzing your specific market conditions, customer base, and service capabilities to design customized coverage options that align with your business model. The onboarding process typically includes:

• Program design consultation: developing coverage levels, pricing structures, and terms tailored to your commercial customer demographics
• Sales training modules: equipping your team with presentation materials and value proposition frameworks
• Marketing collateral creation: producing branded materials that communicate coverage benefits effectively
• Technology platform integration: implementing digital tools for quote generation, contract management, and claim processing
• Ongoing performance analytics: providing monthly reports on attachment rates, renewal metrics, and revenue generation

AIG underwrites extended service agreements, providing the financial backing and claims-paying ability that commercial customers demand when protecting critical infrastructure investments. This relationship ensures that when covered failures occur, repairs proceed without delays or disputes, maintaining operational continuity for businesses that depend on their rooftop units for customer comfort and regulatory compliance. The specialized, fully scalable extended service agreement platform adapts to businesses of all sizes, from independent contractors serving local markets to national mechanical contractors managing thousands of units across multiple states, ensuring that protection plan offerings remain profitable and sustainable regardless of scale.