KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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doing subcontracting work / Chanukah and Christmas gift [free]
 December 14, 2017
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Chanukah and Christmas gift
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doing subcontracting work
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Ken
    I need a contractor – sub contractor form. A firm that does installations and fully licensed in Texas asked us to cover them in NY for an installation. I am getting insurance forms and the worker’s license info in Texas, as well as their personnel info. The entire project will be 2 to 3 days. Is this the correct form? One other item is that their insurance company has a blanket additional insured form and named us as a certificate holder with this amendment attached. They don’t do additional insureds as I am used to. If this isn’t the right form to use, which one is? I know I can order these forms on your website which I will. Once I know which one to select.
name withheld
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Response
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    You are a NY licensed alarm company.  A Texas licensed alarm company is asking you to perform licensed alarm work in NY.  You want to know what you need.
    You should be using our Standard Form Subcontractor Agreement.  That will cover your relationship with the Texas company hiring you and will help structure that relationship because it will deal with the issues I am going to discuss here, and more.
    You need to get a copy of the End User Agreement.  If you're lucky it will be the Standard All in One; then you will know you are protected.  If there is no end user agreement or a poorly drafted agreement then you will have little or no protection if there is a loss.  
    You should get named as an additional insured on the Texas company's insurance policy.  Being named as a Certificate Holder is not enough unless the Declaration also states that Certificate Holders are also Additional Insureds.  You also have to carry E&O insurance and don't be surprised if the Texas company wants to be named as additional insured on your policy.  Each of you should be responsible for your performance.  You will probably be required to indemnify the Texas company but you should limit that indemnity to installation and service; exclude monitoring since you're not doing that work.  The Texas company should indemnify you if the loss is monitoring related since you are not doing the monitoring and the Texas company is contracting for that service.
    You need your own workers comp policy, not the Texas company's policy.
If you intend to allow any of the Texas company employees to work on the job here in NY then you should "document" them as if they were your own employees, which they will not be unless you are hiring them for the project.
    You can get the Subcontract Agreement on our Order form.  www.alarmcontracts.com
    You can also suggest that the Texas company get our All in One agreements, and use them on this job.
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THE ALARM EXCHANGE

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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
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com