Originally Posted by glacierjohn
S&S, I see your point and agree in a general sense, but it seems the major rod companies decided long ago to charge more per rod to put aside as insurance to cover all our stupid rod breaking mistakes. I remember reading Orvis's generous no fault warranty thirty years ago and wondering how or why they would do that, then realized I would be inclined to buy that warranties rod over one. With lesser warranty.
The problem is that rod companies DID NOT put aside the additional profit to provide for future breakage.
It is just like Detroit guaranteeing generous pensions to city employees without funding the pensions. The result is a financial overhang of mounting warranty claims that must be paid out of current revenue.
Just like Detroit, this will eventually drive rod companies under. Therefore, some rod companies are backing away from fulfilling their warranties. For example, GLoomis no longer fulfills the no fault warranty that was in effect when you bought an older GLoomis fly rod. All Gloomis covers is workmanship and material defects just like a toaster purchase. They have retroactivily applied this to the older purchases.
Current GLoomis Warranty: "G.Loomis rods … are covered by a limited warranty against defects in workmanship and materials for the lifetime of the original owner."
Even Sage no longer covers their rods as they used to, Previous warranty claims were processed for free. Now they there is a $50 fee
for claims. This is a repair charge regardless of what Sage calls it. "WARRANTY PROCESSING FEES: The original owner will be charged a $50 fee for each repaired rod ($30 for each reel) to cover processing, insurance and return shipping from our factory to you after your repair is complete. Your credit card will be pre-authorized when the warranty request process is initiated but you will not be charged until your repair is finished."
My good friend Jim Greenlee (Jim was the investor who provided funding for Islander Reels, Korkers, Streamborn of Canada, who joined with TFO to form TFO fly rods) had his accountant go over the books at Sage when they were up for sale. He decided not to purchase because it just did not make financial sense.
There are two kind of insurance. I will use medical malpractice insurance as an example. One is an Occurrence Coverage which is like auto insurance. If you have an accident while you have insurance, you are covered and if you let the policy lapse, you are not covered if the patient sues you years later.
The other is Claims Made Coverage. It covers you for any claims made for any incident that occurred while you were covered. So even if you drop the Claims Made insurance, you are still covered for claims made by the patients you treated while you had insurance. This is what rod companies need. Their liability
to repair/replace that fly rod goes on forever!
With every rod they sell, their liability increases. Their situation is actually worse than a physician's because there is a statute of limitations on malpractice, but there is no time limitation on replacing broken fly rods. Even worse, the same fly rod can be replace multiple times, while each malpractice is a single liability.
As I said in a previous discussion, "They don't even guarantee anvils for life and an anvil is harder to break than a fly rod."
Opinion Editorial: Rod Warranties… It