KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Providing additional insured coverage is no simple matter August 6, 2026 ************************ Providing additional insured coverage is no simple matter ************************ This is one of the industry's most pressing matters and you need to be very careful how you navigate this issue. Your customer demands that you name it, and perhaps others, as additional insured on your general liability insurance policy. That demand my also explicitly require that your policy be non-contributory and primary. The absolute best position you can take is that Alarm Companies are not insurers, offer no insurance to their customers and do not name additional insureds. I take that position typically. But sometimes the subscriber is insistent and our alarm client wants to make the deal, so it's agreed to. That the insurers writing the E&O policies seemingly have no objection to adding these additional insureds is surprising because it exposes the carrier to risks beyond the alarm company's exposure if a K&K contract is used. Rather than me researching insurance issues I'd prefer to give the insurance brokers who participate on this forum the opportunity to chime in and display their expertise and advice. Here are the issues: 1. Alarm companies will generally call their insurance broker requesting additional insured certificates. Do all brokers have the authority to issue the additional insured certificate? Does the broker need to be agent of the carrier, and aren't most brokers agent for the insureds? 2. The broker issues a COI, certificate of insurance, that states the additional insured. The COI can provide for a Certificate Holder, which is evidence of coverage and provides that certificate holders are entitled to notice if the policy is to be terminated or expires. The COI can also provide for the additional insured, and sometimes states that certificate holders are also additional insureds. 3. I've tried to limit the actual coverage of an additional insured but stating that it's subject to the K&K contract terms or that it's limited to acts of the insured, the alarm company. Preliminary research however leads me to believe that the actual scope of coverage for an additional insured cannot and will not be limited by adding the scope to the COI; that the additional insured coverage is defined by the policy endorsement, and only the endorsement can affect the scope of the coverage. I'd like brokers to opine on this and perhaps offer advice on the additional insured coverage, why it's readily issued, if it should be issued. Insured alarm companies do need to be mindful of potential claims, claims and lawsuits and damages incurred by their insurance carrier because invariably it will drive up premiums and make obtaining the coverage more difficult. The whole idea of using the K&K contracts is to limit your exposure; don't defeat the purpose by blindly or passively agreeing to additional insureds on your policy. And, if you are feeling that these issues and negotiations are above your comfort level or too time consuming, join the K&K Concierge Program, where you will be "in good hands" and leave the "driving to us". ********************* STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge 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 ww.kirschenbaumesq.com/page/alarm-articles 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: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** 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 www.alarmcontracts.com ************************** 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
