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Question
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Ken
    Our central station requires that we name it an additional insured on our insurance policy and also won't begin monitoring until we provide a contract signed by the subscriber.  Is this common practice and something we should be agreeing to?
anon
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Answer
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    You should be grateful that your central station has these and probably other requirements.  While you may view these terms onerous or just unnecessary, you have a central station that cares about you and itself.  Sort of encouraging or forcing you to conduct your business in a safer way.  A central station without requirements, such as contracts, isn't doing you a favor.  By monitoring your accounts without contracts it is enabling you to continue doing business in a way that is going to catch up with you eventually and cost you dearly.  
    I don't know of any central stations that will monitor dealer accounts without requiring the dealer to sign an agreement.  That agreement is going to focus its protection on the central station.  It's likely to require the dealer to indemnify the central station from claims and damages for the dealer's subscribers.  If this is all that the central station is requiring, without also requiring insurance and subscriber contracts, it is exposing itself to uneccessary risk and it's allowing its dealers to expose themselves as well. 
    There are other terms and conditions that a central station may impose; some fair and some not so fair.  In an effort to balance the often competing interests I have just revised the "master" agreement between the central station and the dealer.  Formerly called the Installer Contract this agreement will be called the Dealer Agreement.  Dealers should ensure that the central station is using this new form because it's going to better protect the dealer and central station from misunderstandings and conflict.  The Dealer Agreement is a form the central station buys, not the dealer.  Central's can get the Dealer Agreement form at www.alarmcontracts.com
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QUESTION
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Ken
    I thought you believed we should be listed as additional insured on all sub contractors.  A central station is a subcontractor,  right?  I should expect them to add us also as additional insured to its insurance.
    What about their requirement that they approve our contract before accepting each client, and any changes in contracts.  This is not practical in many commercial environments.  They are one of the only CS’s that still have that requirement.
Thanks,
Michael
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RESPONSE
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    You should be added as an additional insured on subcontactors that you use for installation or service.  A central station, though performing the monitoring service that you contracted with the subscriber to provide, is not providing any services at the premises and that distinction separates it from other subcontractors that you engage to perform the services you have contracted to perform.  
    Don't expect the central station to name you as an additional insured on its policy, and expect to name the central on your policy.  That's actually a good idea since you are also most likely agreeing to indemnify the central station against claims made by your subscribers and their losses.  Naming the central on your policy as an additional insured will cover your indemnity obligation provided you limit that indemnity to the policy, which you should.
    I don't know why it's not practical to provide your central with the subscriber's contract, even if it's not the Standard Form you use but the subscriber's form agreement.  Let the central decide if that contract will suffice or if your subscriber will have to sign a monitoring contract directly with the central station.  This will protect the central station and should offer you protection as well.  Just because you may be willing to accept great risk and exposure working without a proper contract or no contract doesn't mean the central station should be willing to accept that risk.  I don't think you should continue doing business with any central station that is willing to accept that risk or enables you to.
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