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Comment on can you raise limitation of liability

June 30, 2022
Comment on can you raise limitation of liability from June 23, 2022
          In 53-years I had ONE customer, a commercial pawn shop owner want the limitation of liability increased.
          I informed him NO PROBLEM and I went to the carrier and informed them about the 1-million dollars the potential customer wanted.  Once the pawn shop owner saw the amount of the policy he FREAKED and decided the contract was OK as it was….
          THEN, I had a jewelry store partner ask me “Joe, is this the BEST system you can install?”
          YES.   It has level II per UL, it had line security level (at the time) AAA and full battery backup – they had a million dollar (at least) loss when the burglars penetrated the room above the vault and then torched open the 2-safes.
          Customer told me we are cancelling our very expensive Jeweler’s Block Insurance Policy.
          MY Response:
          No problem, just let me know when it is cancelled so I can cancel your alarm coverage, remove my system and you can get another company.
          His insurance and my service is still in place after 30+ years!
Joseph (Joe) Pfefer, President & Founder
Jade Alarm Co
          You handled both inquiries exactly as I would have advised.
          The Limitation of Liability has a built in calculation for increasing the limit; it’s 6 times the monthly charge.  That is likely more than the cost of insurance, so you can take the time to price out coverage for the increase.  Let me save you the time; I would be surprised if anyone can let us know that their customer paid the 6 times for the increase or the cost of another insurance policy covering the increase [on top of what the customer already pays for such coverage]. 
          The jeweler’s story is also interesting; you handled it correctly.  There is a case out of NJ [I don’t know name] where the jeweler sued the alarm company for burglary loss.  The judge asked jeweler about insurance and the jeweler testified that when he got the alarm system he canceled his insurance, because the alarm system was a lot cheaper than the insurance.  The judge dismissed the case based on the protective provisions in the alarm contract. 
          It’s very tempting to modify your contract form or to sign a contract form presented by your customer or general contractor.  It’s risky to entertain those contract issues, especially on your own.  One of the most used benefits of the K&K Concierge Program is the monthly contract review credit of $250.00, an amount sufficient to review most contract questions and issues.  If you haven’t signed up for the Concierge Program, you should, and don’t wait, because the cost of joining is going to increase soon [like everything else] and existing Concierge Clients will be grandfathered in with no increase.  Join here or call Stacy Spector, Esq, Concierge Program Coordinator at 516 747 6700 x 304.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301