I was just asked if I want terrorism insurance.  What's that about and do you think I need it?
    Your General Liability insurance policy with Error and Omission coverage for your alarm business excludes loss caused by acts of war and terrorism.  The Terrorism Rick Insurance Program was initially signed into Federal Law in 2002.  Most recently it was extended when Obama signed the  Terrorism Risk Insurance Program Reauthorization Act of 2015 which extended the program to December 31, 2020.  The insurance brokers listed on The Alarm Exchange can probably provide a better explanation than I can, but essentially I believe the Federal Law requires carriers [or permit carriers] to offer to include war and terrorism caused loss under the liability policy.
    Security America Risk Retention Group [SARRG] offers an endorsement which deletes the exclusion in the SARRG policy for war and terrorism.  This war and terrorism coverage expands coverage only in the sense that loss from war and terrorism is no longer excluded from the policy.  You have to pay for the insurance; not sure what the carriers are charging.
    For a claim to be covered it will still have to be a covered claim under the policy.  That  means there will still have to be an "occurrence" and "property or personal injury loss".  For alarm E&O policies loss will be interpreted to mean a burglary or fire or other loss for which the alarm was designed to detect.  
    Do you need to get this endorsement?  I am trying to come up with a scenario where it may apply.  I suppose that without the endorsement, alarm activates, signal is received and negligently handled, loss occurs.  Could be burglary or fire.  If the loss started with a declared act of terrorism then I suppose without the endorsement you the carrier could deny coverage.  WIth Obama we don't seem to have acts of terror, so maybe you don't need the endorsement.  Like all other insurance, you don't need it until you do.
    I attended your nationwide telemarketing webinar.  Thank you for putting on these seminars, very interesting.  I am a modest sized PERS only dealer. However, I am contemplating the DIY security market. I am approached on a regular basis by third party call centers wanting to generate PERS sales on my behalf. We’ve done enough of these types of sales to understand the true cost of doing business this way. Done correctly, with the right follow-up processes in place by the dealer, these types of sales are a good way to grow a business. I am interested in an agreement that I could use with my call center(s) as I would like to minimize my risk from a call center violating the various rules and laws. What’s the estimated cost to develop this agreement? While our office is in Oregon, we do business in all 50 states.
Thanks again,
    The telemarketing business you engage should have a "form" agreement to offer you.  After all, it's their business.  It would be odd for you going to a PERS customer and ask them for a contract they prepared.
    I would be happy to review the telemarketing contract, and it should be reviewed by a lawyer.  Be careful with a few issues.  The telemarketing company should represent that:

  • it is licensed where necessary, 
  • it complies with all telemarketing laws, including the Do Not Call List law, 
  • it has or subscribes to Do Not Call compliance software program,
  • it agrees to indemnify you for violations of law and penalties, and
  • it carries insurance that covers fines and violations and names you as an additional insured.