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 ****************************** More on Be wary of insurance renewal questionnaire December 20, 2024 ************************ More on Be wary of insurance renewal questionnaire from article on November 29, 2024 ************************ Ken, Agreed with Shawn’s response and would just like to add a few items. I have been working in the space 15+ years, supplemental applications have always been an underwriting requirement by majority of carriers. Insurance carriers may require every year, some only every 3-5 years but the carriers that have an Alarm Program and focus in the space almost all require. Underwriting questions/applications may be confusing or written from an underwriting perspective so it is important to work with a broker/carrier to fully understand the questions and how they should be addressed. Each carrier has different underwriting appetite, usually the primary focus of the application from an underwriter is the “Breakdown of Operations” meaning the type of services and percent of annual revenue being offered along with questions regarding the contracts. Applications shouldn’t be a concern assuming you are answering truthfully, a lot of times the information on the application can be leveraged to negotiate better coverage terms and overall premiums for the best-in-class companies. Especially for the ones using great contracts! Thanks, Jeff Schulz, CIC, CRM Principal J. Krug Insurance | Employee Benefits | Financial Services o.847.818.7508 / c. 708.790.8514 ************************* Response ************************* Though Shawn’s webinar was yesterday I am writing this article two weeks before, so I don’t know if Shawn covered the topic sufficiently or at all. We may have to invite Jeff to do a webinar focused on this topic. It’s a serious topic, which is a good way to describe it because if you get a “serious” [read lot of money and messy nasty facts] the carrier is going to “seriously” look to see if it has a way out of defending and being responsible. Mistakes on the application or renewal application, especially if made intentionally or with wonton disregard, might just be the ticket out of the claim for the carry; but not your ticket out. You’ll be on that train without a seat. Jeff’s suggestion to answer “truthfully” is sound advice, if not obvious. But it’s not really that easy because so many of you have operations that just don’t fit neatly into each category, and carriers may not really understand what you do anyway. For example, you’re not a professional central station so you may answer that you’re not in monitoring business. But you contract for the monitoring and subcontract it to the central station, so when there is loss attributable to the monitoring you’re going to get sued and even worse, you’re going to have to indemnify the central station. Guess what? You’re in the monitoring business. You’re not in the fire alarm business? Well when you install a smoke detector that doesn’t alert the home owner, and you get sued, get ready for denial of coverage if your policy excludes fire alarm operations. You would be well advised to answer questions in great detail; that means a check box may not be appropriate for your response. Be clear in what you do, every and all system and services you provide; even if it’s one customer [that could be the one with the claim]. ************************** STANDARD FORMS 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles 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: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email 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. 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 www.KirschenbaumEsq.com
