A recent inquiry asked whether additional liability was being assumed by
adding the subscriber as an additional insured.  The subscriber insisted on
being added and the alarm company was concerned that it was opening itself to
additional liability.  Also, the alarm company didn't like that its carrier
charged $104 for the certificate.  What to do?
     You might be asked to add your subscriber to a certificate in two ways.
The first is as a certificate holder.  This generally provides no insurance
protection to the certificate holder, but merely gives the certificate holder
the right to certain notice before the policy is canceled for non payment or
other reasons.  The certificate holder may have other rights as the certificate
provides, such as a secured party who would be added as a certificate holder
with a designation of "loss payee."
     A certificate holder who is designated as an additional insured has other
protection; it is insured under the policy just like the main insured, which
would be you.  Generally the additional insured would have insurance protection
that was identical to your protection.  In other words, the additional insured
is covered for loss related to your exposure and not other exposures.  Of
course the insurance is nothing more than a contract and the terms of that
contract, or policy of insurance, can be worded to provide whatever terms and
protection the parties desire.
     Adding your subscriber as an additional insured should not create new or
additional liability or exposure for you.  But be warned, the additional
exposure and liability lies in the contract terms that you agree to that
includes the requirement that you name the subscriber as an additional
insured.  More than likely the contract is also requiring you to indemnify the
subscriber, and that most certainly opens you up to additional exposure and
liability.  If you agree to indemnity make sure your insurance policy extends
coverage for "contractual indemnity" or you will find yourself in the position
of being your subscriber's insurance company.
     Now a practical approach.  You may find that you want to do business with
the subscriber no matter what the terms of the contract are, and in that
situation you are going to sign anything put in front of you, and worry about
it later.  That makes legal advice easy.  Sign and keep your fingers crossed.
I suggest you understand what you are agreeing to and if you think it prudent
obtain the necessary insurance protection to cover the risks created by your
contracts.  When you shop for insurance ask for contractual indemnity
protection [if it is available] and ask that certificates and additional
insured certificates be issued without additional charge.  You probably won't
get either request, but no harm in asking.