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Buying out partners / Comment on additional insured  Schedule Free meeting at ISC / Round Table Discussions at ISC 
February 22, 2020
Buying out partners
            We have been clients of yours for various contracts for our fire sprinkler company and I wanted to see if you were able to help us restructure our company ownership. My partners and I split the company ownership but they are older and are looking to sell their interest in the company. We are wondering about the best way to do this as well as learn about the gifting limits and tax burdens for the ownership restructuring. We are obviously trying to do this with the least amount of tax liability as possible. If you can, please let me know what the steps would be to begin working with you and getting this resolved, as well as what other information you need from me.
 Thank you,
Name withheld
            K&K has a corporate department that will handle the transaction and we will help you structure it.  We don’t however opine on tax matters.  If your accountant is not able to help we would recommend bringing in Mitch Reitman, a tax specialist focusing on the alarm industry.  He is listed on The Alarm Exchange.  Contact our corporate department but reaching out to  Jennifer Kirschenbaum,Esq, 516 747 6700 x 302 or  
Comment on additional insured from article on February 3, 2020
            Thank you for your words of wisdom.  We have found that we have to educate our dealers and help them understand the importance of the additional insured.  Their existing agents aren’t familiar with the alarm and PERS industry so they don’t understand and are giving them bad advice. 
            The alarm industry IS very unique.  In most other industries, there is NOT a cross additional insured endorsement listing each other (monitoring center and alarm dealer) as additional insured.  Typically it goes only one way.  Meaning a subcontractor would list the general contractor as additional insured on the sub’s policy.  But it wouldn’t go the other way.  The General contractor would not list the sub as an additional insured on the General’s policy.  That is for the general liability policy. 
            However, in the alarm and PERS industry both the monitoring company and the dealer list each other as additional insured on BOTH the professional and general liability policies.  This is VERY unique.  The reason this is required is because both entities could be deemed the primary contributor and or negligent for an error or omission.  As both are acting in behalf of the other.  When a subscriber calls in to the monitoring center, the operator doesn’t answer as the monitoring center, but instead answers the name of the dealer.  Likewise, the dealer doesn’t mention the monitoring center as the monitoring company when selling the alarm system.  If and when a claim arises, both need to have coverage on each other’s policy.  If it is the dealer’s error, then the monitoring company will receive defense and coverage under the dealer’s insurance policy.  And the same would go the other way if the monitoring company were liable, then the dealer would piggyback on the monitoring company’s insurance policy. 
            In other industries, you would typically not add an additional insured under the professional liability policy because the two entities are in two different professions.  And when that happens, it prohibits one from suing the other.  It actually reduces coverage in most industries. 
            In the alarm industry, it is not the monitoring company nor the dealer suing each other for professional liability.  It is always a third party.  In the alarm industry, the monitoring company and the dealer are in essence on the same page and same profession. 
            Most alarm dealers should have their professional and general liability with the same carrier.  All of the carriers we represent WILL allow this additional insured endorsement on both the general and professional liability policies.
            Thanks again, Ken. 
 Talk to you soon.
 Shawn Iverson, CIC
The Insurance Center
Ogden, UT 84401
            You may not be able to get the Monitoring Center to name the dealer as an additional insured.  Keep in mind that the dealer is almost always required to indemnify the Monitoring Center.   Best advice is for the dealer to add the Monitoring Center as an additional insured.
            Shawn and The Insurance Center is listed on The Alarm Exchange

Schedule Free Private meeting while at ISC with Ken Kirschenbaum - still a few open times:
            I am scheduling free meetings at ISC now for March 17, 18 and 19, 2020. The meetings are free and scheduled in half hour increments.  Any issues can be discussed or just stop by to chat.  To reserve a time please contact Stacy Spector,Esq at 516 747 6700 x 304 or

Round Table Discussions while at ISC, at Palazzo Hotel.  Free to participate.  Space very limited so book now.  Call Stacy Spector,Esq at 516 747 6700 x 304 to reserve your seat.  [other topics may be announced]
Round Table:  March 18, 2020 at 11 AM.  Join Morgan Hertel, VP of Technology and Innovation, Rapid Response Monitoring and Ken Kirschenbaum for a round table discussion on current state of monitoring including technology and well as outside influencers like minimum wages and privacy laws. 
Round Table: March 18, 2020 at 1 PM.  Join Mitch Reitman and Ken Kirschenbaum for a round table discussion on Taxes and Corporate issues for alarm companies relevant when selling or buying accounts. 
Round Table:  March 18, 2020 at 2 PM.  Join Ron Davis and Ken Kirschenbaum for a round table discussion on Selling or buying alarm accounts and RMR issues.
Round Table: March 19, 2020 9:15 AM  Join Troy Iverson, VP of Sales, Brian Davis, CFO of AvantGuard Monitoring Centers and Ken Kirschenbaum for a round table discussion on the Current state of the Financial/Capital Market Stability in the Security Industry and necessary agreements needed for security companies. (Titian 2202 Meeting Room just off the show floor)
Round Table: March 19, 2020 at 1 PM.  Join Sharon Elder, VP Sales, USA Central Station and Ken Kirschenbaum for a round table discussion on the value of quality video contracts and services
Round Table:  March 19, 2020 at 3 PM.  Join Bart Didden, Executive Claims Administrator, Security America and Ken Kirschenbaum for a round table discussion on Errors and Omissions Insurance Claims and Risk Management

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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