Montreal, Quebec, April 4, 2007--FieldTurf Tarkett confirmed today that it has surpassed the $5 million milestone in prepaid warranty insurance premiums.
"It's more than a financial milestone," said Michel Levasseur, FieldTurf Tarkett CFO. "With all the failures of artificial turf companies in recent years, it should be comforting to clients that FieldTurf Tarkett is financially protected from catastrophic product failures and that our clients themselves are protected in the unlikely event FieldTurf ceases to be around to warrant its fields. Over thirty companies in the artificial turf industry have gone bankrupt in recent years, leaving their customers with no protection and worthless warranties. We go forward never looking back because we have invested in our security and that of our clients."
The global leader in sports surfacing, FieldTurf Tarkett, installs more fields than all of its competitors combined -- and continues to lead the way in protection for its customers.
"Since the very beginning, we offered an insured warranty," said John Gilman, FieldTurf Tarkett CEO. "It is a policy that protects the customer regardless what happens to us. In a business landscape littered with poor products and financially weak companies, customers were too often left out in the cold. Our idea to prepay a warranty policy was the only way to ensure real protection to the customer."
According to Levasseur, other companies have mimicked FieldTurf Tarkett. "They have tried to copy the insured warranty; however, their warranties still come up short," he said. "Our policy is from Chubb Insurance, which A.M. Best rates 'A++' (Superior) and Category XV -- the highest rating available. The policy has a US$7 million limit annually with no deductible. There is no limit per claim, no retention, and no retention period. And our policy covers all of our fields -- old ones and new ones. Neither FieldTurf Tarkett nor the customer are required to advise anyone of a new installation to add to the policy, or otherwise 'make sure' that a particular field is covered."
Gilman sums it up like this: "Everyone gets a warm security blanket from Chubb Insurance."
In addition, FieldTurf Tarkett has earmarked $500,000 in an "In Trust" bank account serving as a preliminary layer of protection which is exclusively for small warranty repairs -- to cover any possible repair work needed on projects installed.
As part of the +US$2.5 billion Tarkett Group, in operation since 1872, FieldTurf Tarkett enjoys the strongest equity base in the entire industry and has been profitable year after year. With bonding capacity of US$75 million and comprehensive supply agreements in place for all its system components, including sand, rubber, and fiber, the sound financials of the industry leader are the best protection any customer can have.
FieldTurf Tarkett's ultimate security is its warranty insurance policy, protecting both FieldTurf Tarkett and its client base from catastrophic product failure.
FieldTurf Tarkett is the only true manufacturer of artificial turf. With a state-of-the art plant in Dalton, Georgia that will produce enough tufted carpet for well over 500 full size stadiums each season, FieldTurf Tarkett has over five million pounds of fiber on hand at any time. The fibers are designed and made exclusively for FieldTurf Tarkett. With complete in-house engineering, FieldTurf Tarkett designs and engineers each base specific to a location's unique characteristics while its experienced installers are the most qualified in the industry.
"All of our competitors buy an 'off-the shelf' product from suppliers who sell products which may or may not be what is best for the job," added Gilman. "Like our engineering, our manufacturing and materials lead the way in quality, consistency and durability and our extensive testing makes sure that our products continue to perform as designed. No other manufacturer can ensure such quality control."
Which is likely why FieldTurf Tarkett has never had to file an insurance claim.
"No, we have never had to file. Not a single claim," said Gilman. "But it's nice to know it's there. We are fully protected and it's clear that FieldTurf Tarkett will be around to service its sales. I guess that's why it's called insurance."
