Warranty Template: Drafting Clear Warranty Clauses for Businesses

If you sell products, supply goods as part of your services, or offer repairs and installation, customers will eventually ask: “What’s the warranty?”

Having clear warranty wording (whether it’s a clause in your terms or a standalone policy) can help you set expectations, handle complaints more efficiently, and reduce the risk of disputes escalating into chargebacks, bad reviews, or formal claims.

But in Australia, warranties aren’t just a marketing promise. They sit alongside non-negotiable consumer rights under the Australian Consumer Law (ACL). That means a warranty template needs to be drafted carefully, so it helps your business rather than accidentally creating extra obligations (or misleading customers).

Below, we’ll walk you through how to use a warranty template in a legally sensible way, what to include, what to avoid, and a practical “fill-in-the-blanks” warranty clause you can adapt for your business.

What Is A Warranty Template (And When Do You Need One)?

A warranty template is a reusable starting document you can adapt to describe:

• what you promise to fix, replace, or refund if there’s a problem;
• how long that promise lasts;
• what the customer must do to make a warranty claim; and
• what is not covered (as long as it doesn’t conflict with the ACL).

In practice, many small businesses use a warranty template as:

• a clause inside their customer contract or service agreement;
• a section inside their online terms (e.g. for ecommerce);
• a printed warranty card or “warranty policy” handed over at purchase; or
• a warranty schedule attached to a quote or invoice.

You’re more likely to need a robust warranty template if you:

• sell physical products (including online);
• sell higher-value goods (appliances, electronics, furniture, equipment, caravans, etc.);
• provide installation or repair services;
• sell goods that require correct use/maintenance to avoid damage;
• work with trade customers and consumers, and need different terms; or
• use marketing claims like “12-month warranty” or “lifetime warranty”.

Even if you’re a service-based business, warranties can still matter. For example, if you supply parts or materials as part of your work, customers may treat the overall output as “goods + services” and expect a clear pathway for fixing issues.

How Warranties Work Under Australian Consumer Law (ACL)

Before you use any warranty template in Australia, it’s important to understand the baseline: the ACL gives consumers automatic rights called consumer guarantees.

These guarantees apply regardless of what your warranty says. In other words, you generally can’t “contract out” of the ACL by writing a strict warranty clause.

Common consumer guarantee concepts include that goods must be:

• of acceptable quality (safe, durable, free from defects, acceptable appearance and finish);
• fit for purpose (including purposes the customer made known to you); and
• match their description or sample.

Services must generally be provided:

• with due care and skill;
• fit for purpose (where relevant); and
• within a reasonable time (if no time is fixed).

This is why warranty drafting is a balancing act:

• A good warranty template clarifies your process and any additional promises without contradicting consumer rights.
• A risky warranty template tries to limit rights too aggressively (e.g. “no refunds under any circumstances”), which can expose you to consumer law issues.

If your business sells to consumers, it’s worth being familiar with how ACL warranties and timeframes can work in real life, including the common confusion around “2-year warranties”. For a practical overview, you can read our explanation of ACL warranty timeframes.

Express Warranties vs Consumer Guarantees

When customers talk about “the warranty”, they might mean one of two things:

• Express warranty: the specific promise your business makes (e.g. “12-month replacement warranty”).
• Consumer guarantees: the automatic rights under the ACL (which can extend beyond 12 months depending on the item and circumstances).

A common mistake is writing an express warranty that implies consumer rights end when the express warranty ends. That can be misleading. Instead, you usually want wording like: “This warranty is in addition to your rights under the ACL.”

If You Offer “Warranties Against Defects”

In some situations, businesses provide a specific type of express warranty called a warranty against defects (often used in product documentation and manufacturing/supply chains). These can come with specific disclosure requirements under the ACL and the related regulations.

If you’re issuing a formal warranty against defects (especially for consumer goods), it’s worth getting the wording checked so it includes the required information (like how to claim, who bears claim expenses, what you will do if a defect is confirmed, and the prescribed ACL statement) and doesn’t create avoidable risk.

What To Include In A Practical Warranty Template

A warranty template works best when it’s easy to read, hard to misinterpret, and clearly explains how the customer can get help. If your warranty clause is vague, it can backfire by increasing arguments about what you “meant”.

Here are the core sections most Australian small businesses should consider including.

1. Who The Warranty Applies To

Be clear whether the warranty applies to:

• the original purchaser only;
• subsequent owners (transferable warranty);
• business customers (B2B); and/or
• consumer customers (B2C).

If you sell both B2B and B2C, your customer terms should be drafted to reflect this properly. A one-size-fits-all warranty template can cause confusion if trade customers expect one standard and consumers are entitled to another.

2. What Is Covered (And The Standard You’re Promising)

Spell out what faults or defects the warranty covers. Examples include:

• manufacturing defects;
• faulty workmanship (for installation/services);
• defective materials; and/or
• failure under normal use.

Try to avoid vague phrases like “normal wear and tear” without any explanation. If a customer disputes what “normal” means, you’ll still need to resolve it. A better approach is to explain typical exclusions and give a few examples.

3. Warranty Period (And When It Starts)

Be precise about the timeframe and trigger date, such as:

• starts on the date of purchase;
• starts on delivery;
• starts on installation/commissioning; or
• starts on practical completion (for project-based work).

If you offer different warranty periods for parts vs labour, separate them clearly.

4. Your Remedy: Repair, Replacement, Refund (And How You Decide)

Warranty templates often fall down here. Customers want certainty, but your business needs flexibility.

Consider stating:

• you will assess the issue first;
• you will provide a remedy consistent with the ACL (and, where the ACL allows you to choose, you may choose the appropriate remedy); and
• for major failures, the customer may have rights to reject goods and choose a refund or replacement under the ACL.

This is also where your broader customer contract matters. If you supply goods/services under a more detailed agreement, your warranty clause should fit consistently with the rest of your terms (for example, your process for returns, inspections, and timeframes).

5. Claim Process (What The Customer Must Do)

A good warranty template makes claims predictable and manageable. You might require:

• proof of purchase (receipt, invoice, order number);
• photos or videos of the issue;
• a written description of the fault;
• return of the product for inspection (where reasonable); and
• the customer to stop using the product if continued use could cause damage or safety issues.

Keep this practical. Overly burdensome claim steps can frustrate customers and increase disputes.

6. Exclusions (What Is Not Covered)

Exclusions are useful, but they need careful drafting. Common exclusions include:

• damage caused by misuse, abuse, negligence or accidents;
• unauthorised modifications or repairs;
• failure to follow instructions or maintenance requirements;
• consumable parts (filters, batteries, etc.) where appropriate; and
• cosmetic issues that don’t affect function (depending on the product and what was promised).

Be careful not to exclude rights the customer has under the ACL. The safest approach is to frame exclusions as circumstances where the issue is not a “defect” in your product or workmanship, rather than trying to exclude statutory rights.

7. Costs: Shipping, Removal, Reinstallation, Call-Out Fees

This is a common pain point, especially for bulky goods or installed products.

Your warranty template can clarify things like:

• who pays return shipping for warranty claims;
• whether you cover removal and reinstallation (and when);
• service call-out fees if no defect is found; and
• how regional/remote travel costs are handled.

For consumer transactions, you’ll still want to ensure cost terms are fair and don’t undermine ACL remedies. For business-to-business transactions, you may have more flexibility to allocate these costs contractually.

A Simple Warranty Template Clause You Can Adapt

Below is a practical warranty template clause. It’s written in plain English, with optional sections in square brackets. Treat it as a starting point only, and tailor it to your product/service and sales model.

Warranty Template (Sample Clause)

Warranty

1. Warranty Coverage
We warrant that the goods and/or services supplied by us will be free from defects in materials and workmanship under normal use for a period of from (Warranty Period).

2. What We Will Do
If a defect arises during the Warranty Period and you notify us in accordance with clause 3, we will provide a remedy consistent with the Australian Consumer Law (ACL). Where the ACL allows us to choose the remedy, we will, at our option:

• repair the goods; or
• replace the goods or supply equivalent goods; or
• refund the price paid for the goods and/or re-perform the services.

3. How To Make A Warranty Claim
To make a warranty claim, you must:

• contact us at within the Warranty Period;
• provide proof of purchase (such as an invoice or receipt);
• describe the issue and provide reasonable supporting evidence (such as photos); and
• make the goods available for inspection, testing, or return (as reasonably requested by us).

4. Exclusions
This warranty does not apply to defects or damage caused by:

• misuse, neglect, accident, or abnormal conditions;
• unauthorised modification, repair or alteration;
• failure to follow instructions, warnings, or maintenance requirements provided by us; or
• fair wear and tear or consumable parts .

5. Costs

(a) Where a warranty claim is accepted, we will cover the reasonable costs of .
(b) If no defect is found or the issue is excluded under clause 4, you may be responsible for the costs of inspection, transport, and/or any call-out fee of .

6. Australian Consumer Law
Our goods and services come with guarantees that cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and to compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure.

Important note on warranties against defects: If you intend this clause to operate as a formal “warranty against defects” for consumer goods, you may need to include additional information and prescribed wording under the ACL and regulations (for example, clearly stating what you will do if a defect is confirmed, who to contact and how to claim, and who bears claim expenses).

This clause is designed to be “business-friendly” while still acknowledging consumer rights. In many cases, you’ll also want this warranty clause to sit within broader customer terms so it matches your payment, delivery, returns, liability and dispute processes.

For example, if you sell online, a warranty clause typically works best when it’s consistent with your checkout terms and refund process in your ecommerce terms and conditions.

Common Warranty Template Mistakes (And How To Avoid Them)

Small businesses often borrow warranty wording from competitors or overseas templates. The risk is that those templates may not match Australian law, your actual operations, or your product type.

Here are some common problems we see, and what to do instead.

“No Refunds” Or “Store Credit Only”

Stating “no refunds” as a blanket rule is risky for consumer sales. Under the ACL, consumers can be entitled to refunds in certain scenarios (especially for major failures).

Instead, focus on a clear process and appropriate remedies. You can still have a returns policy that deals with change-of-mind returns separately from defects, but don’t blur the two.

Warranty Periods That Don’t Match Marketing Claims

If your website says “2-year warranty” but your invoice says “12 months” and your staff say “we’ll see what we can do”, you’ll create confusion and disputes.

Aim for one source of truth, and ensure your marketing aligns with your legal terms. If you use multiple documents (website terms, quotes, invoices), make sure they don’t contradict each other.

Unclear Responsibility For Installation Work

If you supply a product and install it, your customers often see it as one combined outcome.

Consider splitting your warranty into:

• a product warranty (for the goods), and
• a workmanship warranty (for installation/services).

This is especially important for trades and project businesses where problems can stem from product issues, installation issues, or a mix of both.

Overly Broad Exclusions

Excluding “all consequential loss” or “any indirect losses” might sound protective, but it may not always operate the way you expect for consumer customers, and it can be challenged if it’s unfair or misleading in context.

For businesses selling to consumers, it’s usually better to keep exclusions focused on clear misuse scenarios and ensure the warranty language doesn’t misrepresent customer rights. If you’re selling B2B, a more detailed limitation of liability clause (separate from the warranty) is often a better tool than trying to force everything into a warranty paragraph.

How To Use A Warranty Template In Your Customer Terms (Without Creating Conflicts)

A warranty clause rarely operates in isolation. It interacts with the rest of your customer contract, including:

• payment terms and invoicing;
• delivery and risk transfer;
• returns and cancellations;
• liability and indemnities; and
• dispute resolution.

To avoid contradictions, it helps to decide early: will your warranty live inside one main agreement, or will it be a separate document?

Option 1: Put The Warranty In Your Main Customer Contract

This is often the cleanest approach for service businesses and B2B supply arrangements, because everything sits in one document with consistent definitions and processes.

For example, a tailored Goods and Services Agreement can include a warranty clause that matches your delivery, acceptance testing, and liability framework.

Option 2: Use A Standalone Warranty Policy (With Clear Priority Rules)

This can work well for ecommerce or product-based businesses, where you provide a warranty card or webpage.

If you do this, make sure your customer-facing documents clearly state how they interact (for example, “If there is an inconsistency between these terms and the warranty policy, the warranty policy prevails for warranty claims”).

Make Sure Your Warranty Matches Your Broader Compliance Documents

Depending on your business model, you may also need documents that support your warranty and customer communications, such as:

• Privacy Policy (if you collect customer details for warranty registration or claims);
• Website Terms and Conditions (if warranties are promoted or claims are lodged online); and
• clear internal processes for handling claims so your team responds consistently.

If your business also employs staff who handle complaints and warranty requests, it can help to ensure your onboarding and internal guidance is consistent too, including having the right Employment Contract and customer communication standards.

Key Takeaways

• A well-drafted warranty template helps you set clear expectations, streamline claims, and reduce disputes, but it needs to be consistent with the Australian Consumer Law (ACL).
• Consumer guarantees apply automatically in Australia, so your warranty clause should not suggest that customer rights end when your express warranty period ends.
• Strong warranty clauses usually cover: who it applies to, what is covered, the warranty period, the claim process, exclusions, and cost allocation (shipping/call-outs).
• Common warranty template mistakes include “no refunds” wording, inconsistent marketing vs contract terms, vague coverage, and overly broad exclusions that can trigger consumer law problems.
• Your warranty should fit cleanly into your wider customer terms and website documents, especially where you sell online or collect personal information during warranty claims.

If you’d like help putting together a warranty template (or reviewing your existing warranty clause) so it’s clear, practical, and aligned with Australian Consumer Law, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.