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Insurance procurement clause naming alarm co as additional insured
May 13,2022
Insurance procurement clause naming alarm co as additional insured
          In paragraph  20 of the Residential All in One agreement what effect does it have for my company to be named as an additional insured on the homeowner’s policy?
          What happens if the homeowner does not name my company as an additional insured?
 Thank you,
          You are referring to the Insurance Procurement clause which requires the subscriber to name you as an additional insured on the subscriber’s liability policy.  The advantages that flow to you if the subscriber actually does name you as additional insured is that:
  *  the subscriber’s insurance carrier will be required to defend you against claims and pay any damages up to the policy limits if damages are awarded against you
  *  the carrier will not be permitted to sue you in subrogation or for any other reason since you will be an insured of the carrier; carrier can’t sue its insured for loss covered by policy.
          You have another layer of insurance if sued, and it’s the primary coverage.  The All in One does have a waiver of subrogation provision, so he additional insured coverage isn’t essential as long as the waiver is in the contract.
          If the subscriber doesn’t get you named as an additional insured there are a few issues that can arise.
  *  if the subscriber is required to indemnify you then the subscriber won’t have the insurance to back-up the indemnity
  *  the subscriber’s policy may cover the subscriber for contractual indemnity but probably doesn’t
          These provisions are more important to your carrier than you because you will have insurance coverage from your own E&O carrier even if you’re not insured by the subscriber’s carrier.  Of course your carrier may expect you to have the insurance procurement provision in your contract and that you seek to enforce that provision.

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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