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DEFINITION of 'Warrant Coverage'. An agreement between a company and its shareholders whereby the company issues warrants equal to some percentage of the dollar amount of the shareholder's investment. Next Up.
A warranty is a product manufacturer or service provider's documented guarantee of quality as promised to a customer. Warranties provide customers with legally-ensured service replacement or correction of issues insofar as the warranty stipulates in its conditions, for the duration of its term. A warranty's term generally commences at the date of delivery or provision. The document stipulates what is guaranteed and what repairs or remediations will be performed to ensure the promised quality of the service or good, failing these conditions.