What's the difference between the manufacturer's warranty and my SquareTrade plan?

What's the difference between the manufacturer's warranty and my SquareTrade plan?

SquareTrade protects new items from the day they’re purchased. However, most new items also come with a manufacturer’s warranty that covers defects due to parts or workmanship for the the first year of ownership.
 
If there’s an issue with your item that is normally covered by the manufacturer's warranty during that time, we’ll refer you to the manufacturer so they can resolve it. That way, you can save your SquareTrade plan for when you really need it – after the manufacturer’s warranty expires.

If you purchase "Drops & Spills" coverage, then your SquareTrade plan also covers accidental damage such as falling off a table and liquid damage, which is not covered by a manufacturer’s warranty. In these cases, SquareTrade has you covered from Day One.