I've had an S95 now for about a month. Today I hit the open button and got a screen that read "Lens error. Closing down. Restart." The Web mentions this as a recurring issue with the S95, sometimes due to dropping the camera with the lens out, or banging the lens when it's extended. Unusually, it just happens.
Even removing the battery and following Canon's tech's instructions after a phone call, nothing worked and they suggested sending it in for repair...on a month old new camera, used about three times and carried in a padded pouch.
I called B&H, even though it was well past the 15 days of their return period, and explained the story. I asked if anything could be done. They told me to return it to them for exchange. Pretty stand-up service, above and beyond their stated grace period.

