You can read all of our articles on our website. Having trouble getting our emails?   Change your spam controls and whitelist 
Why additional insured is required
February 11, 2023
Why additional insured is required
       Periodically prospective subscribers ask why they need to name us as additionally insured on their policy.  Most times they accept the explanation that it is a term in the standard agreement as our attorney wrote it.
          It was not an acceptable answer for an agreement we are working on. I need a good answer for them.
 Thank you!
          The best answer is one that you probably don’t want to point out, though if they already objected to the indemnity provision it won’t work.  The best answer is that “because you have agreed to indemnify us we want you to be protected by your insurance coverage for that indemnity”. 
          Before I continue, I do often waive the additional insured provision, but usually I have retained the indemnity provision and always the waiver of subrogation, exculpatory and limitation of liability provisions.
          Alarm companies do not want to be involved in litigation involving customer losses, even if the customer had an alarm system in place.  Alarm systems are not preventative, only detection, and aren’t infallible, especially when the system design and services provided are constrained by customer budget or willingness to pay for security or fire alarm protection.  If customers agreed to round the clock guards for security and fire watch alarm companies could offer more in the way of risk allocation, perhaps accepting responsibility for losses sustained by the customer from fire or burglary or unauthorized access control.  But I don’t know of any subscriber willing to pay for the National Guard to be posted every 10 feet.  Sure the analogy can be considered silly, but so should be the notion that alarm companies should be liable for customer loss.  It’s unrealistic for the customer to expect to pay $100 a month for a fire alarm and then look to the alarm company because the 30 million dollar building burned down.  I don’t care if you make it $1000 month and a 300 million dollar building, or $40 for a residence worth 10 million with artwork of 20 million.  Customers need to carry insurance in the amount they need to be made hole or understand that they have decided to accept and assume the risk of loss.
          Customer is indemnifying you and that should be backed by insurance; naming you as additional insured accomplishes that.
          Customer is waiving subrogation [because most claims come from subrogation carriers] and naming you additional insured accomplishes same thing so you can delete the subrogation waiver
          The Kirschenbaum Contracts™ are written to provide the best contractual protection available to the alarm company, but also in a way, an unmistakable way, that customers cannot be miss-lead, misconstrue or feign ignorance of their assumption of risk, their acceptance of risk, their understanding that the alarm system is not preventative and that the alarm company is not liable for any loss.

STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm /  Security / Fire and related Agreements click here:
CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY You can check out the program and sign up here: 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  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:
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