Is squaretrade (3rd-party warranty dealer) a legit company?

I just bought an all-in-one stereo on Ebay. It comes with a 30-day warranty from the seller. After buying it, I got an email offering me a 1-year warranty from Squaretrade for about 13% of the purchase price (including shipping.) Normally I wouldn’t buy an extended warranty, but but this one is only “extended” as far as a normal warranty would be, and the thing I bought has a CD deck in it, and thus it has moving parts which are usually more likely to break than electronics.

Has anybody dealt with this company? Are they a legit business? I looked them up, and apparently “PC Mag” likes them, if that’s a legit magazine.

It’s legit. Whether it’s worth the money is a different question altogether.

Bumping this for holiday purchases:
I just filed a claim this morning with SquareTrade for a refurbished iPod Touch my daughter got a year and a half ago. The battery won’t hold a charge. They’ve determined it’s cheaper to just refund the full iPod purchase price, and are sending a free mailer for us to send in the iPod (to make sure it wasn’t dropped or otherwise damaged). I can’t complain, and my daughter’s delighted.

They are always sending out discount codes for their warranties. I just bought an upgraded 3-year warranty for a new camera, which INCLUDES accidental damage from dropping or spills, for $26.