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Subscriber demands re insurance issues in contract  / ISC Schedule
February 15, 2024
ISC schedule
    I'll be at ISC in April and again sponsoring and conducting informative meeting.  Vendors who wish K&K to schedule meetings for them should contact Stacy Spector,Esq at 516 747 6700 x 304 or now.  Dealers who want to participate in private meetings with me or vendors listed on The Alarm Exchange should also contact Stacy to schedule a time.  Meetings [private and group meetings on scheduled topics] will be schedule for half to one hour, without charge, and conducted at the Palazzo Prestige Lounge.  Times and schedule is limited so please contact Stacy soon as possible to request a topic or schedule an appointment.
Subscriber demands re insurance issues in contract
         We have a subscriber that has been under (K&K) contracts for several years, this year they are asking for "waiver of subrogation for general liability and umbrella liability". 
We also need workers comp policy with a waiver of subrogation. They said in a follow up email this is a new requirement.
          What is the best way to respond?
          Most alarm companies have customers or potential customers who insist that their contract form be signed. These customer agreements invariably have requirements that the alarm company [and all other contractors or vendors the customer deals with] sign the “Vendor” form and carry specific insurance and other issues.  The other issue, for purposes of this article, is that the alarm company waive its subrogation rights.
          It’s too easy for me to say make them sign your K&K agreement and refuse to sign their agreement [or change the K&K agreement].  While it might be the safest approach you want the work; you’re going to sign the contracts, as long as you don’t think you’ll lose too much sleep over it. 
          By the way, as an aside, I’m not being overly dramatic about you losing sleep, and if that is foreign concept to you then you’re not fully in touch with your business or operation, because all business owners need to worry to some degree; you’re no exception.  That lawsuit could be waiting for you in the morning.
          So signing a “vendor” agreement or marking up and changing your K&K agreement is something that you inevitably will have to do.  That doesn’t mean you shouldn’t understand and to some extend manage the risk.  Now’s a good time to mention the Concierge Program, which includes as one benefit a free half hour each month to review and negotiate contracts.  I originally intended to review only K&K contracts but I do spend too much time reviewing “vendor” contracts.
          These vendor contracts want you to carrier insurance.  You should pass that request to your insurance broker to make sure you have or can get the insurance required.  If you can’t then you have your answer whether you can agree to the provision or need to seek modification.
          The contract typically requires you to name the customer as an additional insured.  This is also a good question for your insurance broker.  You need to know your carrier’s tolerance for additional insureds and the cost to you, if any, for the additional insured certificates [commonly referred to as the COI, certificate of insurance]. 
          Next the agreement wants you to waive subrogation.  This one is easy for me because from my experience alarm company’s insurance carriers don’t seek subrogation against alarm customers.  You can agree to this one, though if you ask your insurance broker you may be told not to.  You can as long as your policy won’t be violated; just find that out.
          Make sure you have a knowledgeable insurance broker; knowledgeable in the alarm industry, obviously.  You have the best of the best listed on The Alarm Exchange in the Insurance Broker category.

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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