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 white list ken@kirschenbaumesq.com
************************************
Subscriber in default for failing to comply with insurance procurement provision
November 7, 2018
*****************
NOTICE: Certificate of Alarm Services is now available as a Standardize Form. Get it now at introductory price at www.alarmcontracts.com
**********************
Subscriber in default for failing to comply with insurance procurement provision
*****************
Your contracts, if you use the Standard Form Agreements, have an insurance procurement clause. This provision requires your subscriber to obtain insurance and name you as an additional insured.
The procurement clause serves at least two purposes.
1. Elsewhere in the contract the subscriber agrees to indemnify you. The insurance will ensure that the indemnity is backed by insurance coverage.
2. If you are named as an additional insured the subscribers carrier will not be able to pursue a claim// against you for subrogation. An insurer cannot sue its own insured for reimbursement on a cover claim.
The insurance procurement clause is one of the more challenged provisions, and one that you may have to give up. You should resist waiving it and if other protective provisions are also challenged you need to be sure that you retain enough protection in the contract so that your liability risk is not unreasonably increased.
I get a call now and then asking if an alarm company can terminate a subscriber during the term of the contract for no reason other than the subscriber is bothersome. One way out of the contract without you being in default is to ask for the insurance policy required by the contract. Most subscribers don't object to the insurance procurement provision, but unfortunately, most don't bother to get the insurance. The subscriber's failure to carrier the insurance and name you as an additional insured is an incurable breach of contract. The breach can't be cured because the insured won't be able to get you named retroactively. Prospective insurance cannot retrospectively cure the default. This breach by the subscriber will enable you to treat the subscriber in default, just as if payment was not made, and you will be able to invoke the remedies in the Legal Action paragraph to recover the balance of the contract.
Let K&K's collection department know if we can help. If you have our Standard Form Agreements contact our head paralegal Kathleen Lampert at 516 747 6700 x 319 or email her at KLampert@Kirschenbaumesq.com. If you don't have our Standard Form Agreements, or if they are not updated [they should have the arbitration clause] then call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 or email EWagda@kirschenbaumesq.com, or go on-line and order your up to date contracts here:www.alarmcontracts.com
********************
Party - if you're planning on coming to our annual holiday party on December 14, 2018 please rsvp now by emailing our office manager Amy at ALaVeglia@kirschenbaumesq.com Hopefully you are acquainted with Amy - she processes and oversees our billing and invoicing clients.
******************
NOTICE: To ensure that you continue getting our daily emails please sign up with our other email delivery service. Click here: https://www.kirschenbaumesq.com/page/newsletter-sign-up You can always read our emails on our website at www.kirschenbaumesq.com/page/alarm-articles
*******************
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;
There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a posting, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here.
**************************************************************************************
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
516 747 6700
www.KirschenbaumEsq.com