SquareTrade
| Company type | Subsidiary |
|---|---|
| Industry | Warranty services, Consumer electronics protection |
| Founded | 1999 |
| Founder | Ahmed Khaishgi |
| Headquarters | Brisbane, California , United States |
| Products | Extended warranties for consumer electronics and household appliances |
| Parent | Allstate (since 2016) |
SquareTrade Inc. is a U.S.-based company specializing in extended warranties for consumer electronics and household appliances, with its headquarters located in Brisbane, California.
Dispute resolution services
Established in 1999 by Ahmed Khaishgi, SquareTrade pioneered online dispute resolution for e-commerce transactions. The company collaborated with platforms such as eBay, utilizing a digital negotiation system to facilitate automated conflict resolution between buyers and sellers. From 1999 through 2001, SquareTrade secured $15 million in funding from investors including JP Morgan Partners and Weston Presidio Capital. Additionally, it introduced the SquareTrade Seal, a service designed to verify merchants. Both of these initial offerings have since been phased out.
Warranty services
SquareTrade broadened its focus in 2006 by introducing consumer protection plans covering portable electronics, appliances, and other devices, distributing these products both online and via prominent retailers. That same year, PC Magazine placed the company at number 93 on its list of the "Best 100 Web Sites of the Year." In 2012, the firm attracted a $238 million investment from Bain Capital and Bain Capital Ventures, representing one of the largest venture capital infusions that year.
The underwriting responsibility for SquareTrade’s warranties transitioned from AmTrust Financial Services, Inc. to Starr Companies beginning in 2013.
In late 2016, Allstate acquired SquareTrade for $1.4 billion, incorporating it into Allstate's portfolio focused on consumer asset protection.
Lawsuit
Toward the end of 2016, SquareTrade was subject to a class-action lawsuit alleging that it sold protection plans covering items that were not eligible for such coverage—an issue customers became aware of only upon attempting to make claims.