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 ****************************** Subscriber imposed insurance requirements / K&K Holiday Party Invite November 25, 2025 ************************** Subscriber imposed insurance requirements ************************** Ken After many decades in business with the same clients and contract updates and renewals, some clients are now using 3rd party "Insurance Verification" under the guise of "Simplifying". Along with this "Verification" they are requesting a $2 million increase in our umbrella policy. Now we are contracted for the service we provide and when the contract was signed, they accepted our insurance. Now after many, many years they want an increase. The third instance of this request arrived this morning. I have previously told others that this will need to result in an increase in their contract cost and they said "OK we will accept what you have". BUT is that correct? Perhaps a note in the contract regarding requested increases in insurance will result in an increase in costs for the subscriber? Where are we when the subscriber insists that we upgrade our insurance for their benefit but we have 6 years left on a 10 contract which has been previously resigned?? Jersey Jerry ************************ Response ************************ The question raises a few interesting issues in my mind. Your concern for your insurance coverage signals that you have agreed to contract terms that are not found in the Kirschenbaum Contracts TM. There is no requirement that you carry specific insurance in the Standard Form Agreements. If you agree to terms by signing a different contract, or even a rider to your Standard Form Agreement, then I cannot comment with certainty without reviewing the additional terms. The concern that immediately comes to mind is what have you actually agreed to? If you agreed to insurance requirements then you likely agreed to an indemnity as well. That, indemnifying the subscriber, is also something not in the Standard Form Agreement. The indemnity and the insurance provisions need to be read together because you need to be sure that your insurance coverage, at the very least, covers your indemnity obligation. If it doesn't then you have put your company at risk beyond your insurance protection. Failure to carry the subscriber's requirement for your compulsory insurance has other risks. If you fail to carry the insurance you are in breach of contract and the subscriber can terminate your contract for cause and not pay you. Once you are in contract, hopefully with a Standard Form Agreement, you are not obliged to change that contract by adding indemnity or minimum insurance, or anything else for that matter. If you do decide to change the terms of your contract then you can impose whatever conditions you want, including increase in price. When first negotiating the Standard Form Agreements it's not uncommon for the subscriber to demand to know your insurance coverage. This is especially the case when we agree to modify the contract terms, the exculpatory and limitation of liability provisions, to increase coverage for gross negligence and willful misconduct, or damage caused by your negligence while you are working on the property, and you limit even those damages to your insurance coverage. If you carry one million dollars coverage, which most of you do, and an increase is required, the appropriate response is that the subscriber must pay for the additional premium cost for increased insurance. That often causes the subscriber to retract the demand. Contract negotiations on this level are quite different than negotiating the design and cost of a system. The Concierge Program is designed to provide you with cost savings for legal fees to deal with these issues by offering a free half hour each month for that legal service. I suggest you avail yourself of the Concierge Program and take advantage of its benefits. Whether you think you need the services or not, rest assured that you do, especially if you went to law school and decided to go into the alarm business rather than practice law. ********************** You're invited: K&K 2025 HOLIDAY PARTY WILL BE ON DECEMBER 4, 2025 6 PM Old Westbury, NY [presently, I'll let you know if the location changes]. RSVP only if coming with Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com or Diana Henriquez at 516 747 6700 x 328 or email dhenriquez@kirschenbaumesq.com. Space limited so be sure to RSVP if coming asap *********************** 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
