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Indemnity without insurance backup

February 8, 2024
Indemnity without insurance backup
          Today’s message is one simple issue, but one that can sink or save your company.  You need to confirm, today, that you are covered.
          Every Dealer with monitored accounts, monitored by a third party central station, has signed a Dealer Agreement, in one form or another.  The Dealer Agreements do share a common provision, Dealer Indemnifying the central station for claims by the Dealer’s subscribers. 
          This indemnity is likely unlimited unless you have obtained the K&K Rider to Dealer Agreement [and if you haven’t I suggest that be the next task you attend to today].  Unlimited means just that, unlimited; well perhaps limited to your entire company.  How so?  A personal injury claim can be many millions of dollars.  A property damage claim can be many more millions.  These claims can easily exceed the total value of your company, wiping you out, no matter how big your company is. 
          You need to back-up your indemnity with insurance coverage.  You need to be certain that any indemnity you have given will be covered by your insurance.
          Keep in mind that your indemnity covers more than just your mistakes and liability; it covers mistakes and negligence by the central station; its employees and that means central station operators.
          Your indemnity is covered by your insurance if you have a contractual indemnity provision in your policy or you name the central station as an additional insured.  Check it out today.
          The next thing you need to do is make sure your indemnity is limited to your insurance coverage.  That would be covered by the K&K Rider to central station Rider; that and other things you need, so get the Rider and protect your company.
          And while you’re at it, reduce your liability exposure, yours and your central station and other subcontractors you engage for your subscribers, by getting and using updated current Kirschenbaum Contracts™.  Don’t trust rip-offs or home-made contracts; your company and your future depends on it.

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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