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 ****************************** When to notify your insurance carrier of a potential loss June 27, 2025 **************************** When to notify your insurance carrier of a potential loss **************************** Ken Yesterday afternoon we received a call from one of the central stations that monitor our subscribers that there was a confirmed fire at a subscribers. The subscriber is a nursing home, the central station said they received several smoke detection signals and that the facility said there was a fire in an a/c unit. Following up we checked the central station history and it showed smoke detection signals at 15:03, 15:05, 15:06 and at 15:11, FD was dispatched on the first signal and the central updated the FD upon receiving each additional signal and when they spoke with the facility at 15:11 were told an a/c unit had a fire in it, that was also relayed to the FD although they were already on site. We waited about an additional 15 minutes knowing the facility director was probably busy dealing with the situation and ten sent a text asking if we were needed. Shortly after we received a text that said all was under control, fire was contained within the a/c unit of one room. The fire alarm to our knowledge worked, damage limited to an a/c unit and no reported injuries. Thinking about the various claims and lawsuits we hear about, I can't help but think about someone saying they breathed in smoke (probably toxic if they did) and deciding to sue. While the alarm worked, we could be named in the suit as well and have to provide a defense. We will provide the information we have and notify our insurance carrier just to be on the safe side. Jeff ******************** Response ******************** It is true that you should be notifying your carrier if you get a claim, and it’s good policy to notify the carrier if you think a claim is likely even though you haven't gotten a formal notice of claim. Some carriers will tell you not to bother them until a claim is actually received. You definitely don't want to forget to notify your carrier of a claim and it's a mistake to decide not to notify the carrier because you're afraid of a premium increase. Any claim can mushroom well beyond what you anticipated the damages to be.
Here you did nothing wrong. Signal received and timely dispatched. The customer's carrier may disagree, perhaps think the alarm should have detected the fire sooner or the central station should have dispatched sooner or who know what they might come up with. At this point though you are not on notice of a claim; quite the contrary. There is a downside to notifying your carrier unnecessarily. They will make a record of the claim, probably assign a claim number. If it goes nowhere I suppose it shouldn't affect your "loss run", but I don't know. Insurance brokers may want to chime in on that issue. I can only imagine that "crying wolf" too many times will have impact on your renewal or premium. If not sure whether to report a claim get legal counsel. You have my number. ***************** STANDARD FORM AGREEMENTS: To order up to date Standard Form 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. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / 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. ************************** 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
