You can read all of our articles on our website. Having trouble getting our emails?  Change your spam controls and whitelist 

Comment on do you need E&O when you have K&K Contracts
June 20, 2024
Comment on do you need E&O when you have K&K Contracts from article on May 21, 2024
          Well said.  The E&O insurance is probably the most important insurance policy you, as an alarm dealer, have.  We see the E&O policy used to protect the dealer on more occasions than any other policy.  Most of the time defense is enough and nothing is paid.  But attorneys are expensive and the costs escalate quickly.  E&O is similar to doctor’s malpractice insurance.  Would you go to a doctor that doesn’t carry malpractice insurance? NO.  Same holds true that a subscriber shouldn’t go to a dealer without E&O.  It is MANDATORY!
          The K&K contracts are amazing and will help get you out of a lawsuit, but they don’t prevent a lawsuit from happening.  In today’s litigious society, anyone can sue anyone for anything.  That is true in the security industry.  You can do everything correctly and still get sued.  You need to have the proper insurance in place.  That means alarm industry specific insurance.  Not as an electrician, or an AV person, but as an alarm/security dealer.  Make sure you are using a broker that understands the security industry.  Someone that walks your walk and talks your talk.  You don’t want to have some “cheap” policy that doesn’t pay in the event of a claim. 
          We are seeing more and more frivolous lawsuits coming against the security industry.  Not only are they frivolous, but they are asking for millions of dollars.  Make sure you have adequate limits based on your assets and RMR.  Talk to an insurance advisor in the security industry to make sure you have the right coverage and ENOUGH coverage. 
Shawn Iverson, CIC
The Insurance Center        
1741 North 2000 West
Ogden, UT 84404
801-622-2626 ph/fax/text
          Keep in mind that not all lawsuits are frivolous, and they are all expensive to defend or deal with.  E&O coverage is essential, a basic best practice.  Be sure to use an insurance broker who knows the alarm industry; they can be found on The Alarm Exchange.
          BTW, another best practice is to limit any indemnity you give to your insurance coverage, and you should name any indemnitee as an additional insured.  This is provided in the All in One agreements in the limitation of liability provision [not indemnity because there is no indemnity obligation in the All in One where the alarm company indemnifies the subscriber, and it’s covered in the Rider to Central Station Dealer Agreement.
          Many of you sign customer or vendor agreements.  They all have indemnity obligations with unlimited exposure.  You should be a Concierge Client and sending every customer or vendor agreement to K&K for review, negotiation and revision.  Joining the Concierge Program is a small price to pay for saving your butt, once or much more often.

STANDARD FORMS  Alarm /  Security / Fire and related Agreements
 click here:

CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY You can check out the program and sign up here: or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
ALARM ARTICLES:  You can always read our Articles on our website at  updated daily             
THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily
Wondering how much your alarm company is worth?  
Click here:
Getting on our Email List / Email Articles archived: 
    Many of you are forwarding these emails to friends or asking that others be added to the list.  Sign up for our daily newsletter here: Sign Up.  You can read articles and order alarm contracts on our web site

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