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 ****************************** Additional Insured in Certificate of Insurance / ISC thank you April 12, 2025 *********************** Additional Insured in Certificate of Insurance *********************** Ken, Thank you again for your valuable advice during our Contracts Group Meeting at Palazzo’s Prestige Lounge on Wednesday April 2, 2025. What a good timing as we have an immediate need—under the Concierge program—for your legal counsel related to Additional Insured section of a certificate of insurance (COI). Please let us know what specific verbiage you recommend adding to the Additional Insured section of our standard COI, when we are required to add such entities, to limit the coverage so that it relates to our own onsite work only. Case in point: We just received COI requirements for a new contract with a general contractor, requesting that two entities be named as Additional Insured. When we request our insurance agent to issue our COI for this project, I would like to instruct them to add this specific new language and then to keep consistently adding it to all future COIs. Janusz ************************** Response ************************** As most of you know these articles are written in advance; I am just now recovering from a very busy week at the ISC show where I met with so many dealers in the private and group meetings, and at the parties by Affiliated, NMC and Rapid. Thank you all for taking time to meet with me and my guests; I hope you had a memorable learning experience at the meetings. And thanks to Affiliated, NMC and Rapid for invitation to the party along with my staff who acompanied me this year [all of whom did a great job - Stacy, Kathleen, Diana and Amanda; and this year my daughter Jennifer attended as well and met many of you]. The Concierge Program benefits include a free half hour each month for contract review. I spend about equal time between reviewing K&K contract form changes and Vendor Agreements, presented by your customer. The Vendor Agreement always includes an Additional Insured provision requiring you to name the agent and owner, sometimes others, to your policy. I make a change to this provision which is usually accepted [I don't recall when it wasn't accepted]. The request for Additional Insured will often elaborate by requiring that your policy be "primary and non-contributory". While the insurance experts can confirm or explain better than I, that means that your policy is the first layer of coverage, rendering other policies, including the agent and owner's policies, secondary - pretty much excess - to your policy. Without limits Additional Insured status gives the Additional Insured the same rights that you, the Prime Insured, has. So if the owner suffers a loss at the property it can make a direct claim to your carrier, now its carrier, for reimbursement or coverage. I make a simple modification. The additional insured coverage is limited to covering acts of the Contractor, which is you. This is what is undoubtedly intended, but it's not written that way, and sometimes it's not what the agent or owner try to get. If you request an Additional Insured endorsement certificate you should provide your carrier with the contract that requires that coverage, just in case the carrier later claims that the request contradicts another provision in the policy. Also, be very careful who you send the contract to, because your insurance broker may be your agent, not the insurance company's agent. If the broker is your agent you have to make sure the broker sent the contract to the carrier along with the Additional Insured request. The Additional Insured provision is only one of the provisions in the Vendor contract that needs modification. Making one revision in one contract could save you more money and aggrevation than the minimal cost of the Concierge Program, so join today to begin Concierge Services. *********************** 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
