KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Fire inspection customer requesting additional insured certificate / Should you install Hikvision cameras when demanded by the customer
December 30, 2021
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Fire inspection customer requesting additional insured certificate
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Ken,  
          We are scheduled to do a one-time inspection and test of a fire alarm and received an email from the project managers requesting an insurance certificate naming the managers and owner as additional insured.  We have no problem with sending a certificate of insurance to them, but, they are also listing several other entities that we do not have an agreement with. What are your thoughts and advice?
Jeff
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Response
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          You should not be doing this fire inspection unless you have a Fire All in One signed by the manager or owner.  Even one inspection and testing can expose you to liability and can certainly expose you to being included in a lawsuit if that alarm is perceived to have failed any time after your inspection.
          The Fire All in One requires the customer, whoever signed the contract, to obtain insurance for you and to indemnify you.  Assuming you  have the Fire All in One signed you can respond to the letter demand in a few ways, such as:
  *  We are in compliance with our Inspection Contract and will be conducting the inspection on such and such date and time
  *  We herewith provide our insurance certificate for proof of insurance [but we have not names any additional insured as that is not required by our contract]
  *  We require that you obtain insurance and name us as an additional insured; kindly comply with the contract before our scheduled inspection.
          Another option, ignore the demand and go do your inspection.
          Final option, get the insurance certificate.  If your carrier doesn’t object then that’s your carrier’s problem.
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Should you install Hikvision cameras when demanded by the customer / insurance request on fire inspection
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Ken
          We were recently asked to install a camera system in a jail. The Request for Proposal we were supplied called for Hikvision cameras and NVRs.
          The question i have is, if we proceed with this project knowing full well that it was was federal funds behind this project, who would incur the liability of violating the proposed FCC prohibition on using such equipment in that setting?
          Are we responsible or is the correctional facility responsible since they supplied the equipment specifications?
 Thanks
Alan
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Response
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          This is going to be a looming issue as we head into 2022.  The federal government is becoming more aggressive in its equipment scrutiny and exclusion policies.  Stiffer enforcement is likely to follow. 
          Without studying the federal law, which I think will be changed by legislation and regulations, the safest thing for you is to use the Disclaimer Notice with the Commercial All in One for this project.  If you have to use the municipality’s contract form, or bid form, you will certainly have to add what I think you’ll need in the Disclaimer Notice, and your Schedule of Equipment and Service:
          “Customer has selected the equipment specifications and has been advised that certain equipment specified is prohibited by Federal Law.  Customer has elected to proceed with the specifications and assumes the risk.”
          Is the above enough?  No, but the All in One also has an indemnity provision as well as exculpatory language.  Especially if a government agency is requiring the equipment it’s not likely that any contractor would be held responsible or liable, not after warning the customer.
          This issue is problematic because some customers will blame you even after you’ve warned them if they get in trouble.  Trouble at the moment may mean withholding federal funds or fines.  I don’t recall if criminal consequences are something you need to be concerned with.
          If seriously in doubt you should problem pass on the job or insist on an opinion of counsel from your customer’s counsel that you can install the equipment.  When you don’t get you’ll lose the job anyway.
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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
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com