Question - insurance procurement clause - whats sufficient

Ken 

We were asked by a customer if her company’s General Liability policy would be sufficient for the All in One Paragraph 21 insurance requirements.  Would you please advise?

Thank you,

Maureen Carr, Sales Coordinator

Security Install Solutions, Inc.

Denver, CO

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Answer

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    All of the Standard Form Contracts have an "insurance procurement clause".  This provision requires the subscriber to obtain and maintain insurance covering certain risks and contingencies and name the Alarm Company as an additional insured.  Most inquiries I get from alarm companies ask if they can acceed to the subscriber's demand that the provision be deleted, that the alarm company be required to get the insurance and name the subscriber, or that the provision be modified to delete the requirement that the alarm company be named as an additional insured.  This may be the first question asking about sufficiency of coverage.  Good question.

    Earlier versions of the Standard Form Contracts had a minimum one milliion dollar requirement for insurance coverage.  Like the coverage you have for your Error and Omissions insurance one million or any other amount is not necessarily going to be sufficient if a larger claim arises.  

    The latest Standard Form Contracts change the minimum coverage limits to the subscriber's "insurable interest".  That puts the onus on the subscriber to determine the value of its insurable property and plan accordingly for appropriate insurance coverage, naming the alarm company as an additional insured.  In the question you pose, the subscriber's general liability policy is probably sufficient for liability risks, but does not address loss from other contingencies that the alarm service is designed to detect, such as burgary, theft, smoke, fire or other environmental alarms.  If the subscriber carries an inventory valued at 10 million then that's the insurance it should have.  Carrying less is the subscriber's decision and it's failure to obtain the appropriate insurance will be one more "protective provision" in your contract that insulates you from liability.

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more on sub's trying to get your employee's phone number from Nov 9, 2013 article

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Ken,

    There are (digital) Voice Management Systems that allow you to program the number that your customer sees when the call is routed from the cell phone, through the call management system, which occurs simply by proper programming.  This is especially useful to always have your main number show on the caller ID, even if the call is being made from a secondary line or a cell phone that is part of the system.  The main number is the one that is exhibited in all the advertising, on the vehicles, etc, so it makes sense to have it be the one the customer sees for any call back information.

    This Voice Management System is available in my area through Cox Communications (the cable company). Because they comply with all the FCC regs, if a call is made to 911, the system knows to show the actual calling number for 911 location purposes.  Of course, there is a cost for the call management system, but there are many valuable features that your readers may find are well worth the cost.

Sincerely,

Caralee M. Gibson, President

GSC Systems, Inc.

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Ken

    Actually ANON is incorrect about the caller ID and blocking your #. *67 will block your # - *82 will display it.

Sharon Scalcione

Night Watch Security, Inc.

Hauppauge, NY 

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Response

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    Well what can you expect, anon didn't even know his name

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