insurance issues September 3, 2025

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
**************
insurance issues
September 3, 2025

insurance issues

Ken
   Management firm [and many other customers] requires the following in order to do business with them and if not will not do so. As stated in the terms and conditions, that are what I consider to be issues, such as waver of subrogation and additional insured plus the five-million-dollar umbrella that costs $7,500.00, primary and non-contributory amongst other conditional requirements like auto coverage. By proving what is requested is the exposure even if the insurance company will provide this so overwhelming that it is best to pass on the work here?
   Take special attention to this last statement at the end of the last paragraphed as well that appears to kill contracts provided by the vendor such as yours.
   "No provision requiring the furnishing of insurance herein or in any written contract entered into by the vendor, contractor, or subcontractor, shall be construed to affect, impair or excuse such entity’s obligation to indemnify and hold Management and the building owner harmless as provided herein or in such contract. In addition, vendor/contractor agrees to waive all rights of subrogation against Management or the building owner with respect to any and all losses, casualties, damages and liabilities."
   Typical demands for insurance include:
1. Condominium and Management are included as additional insureds with respects to the General Liability and Umbrella Liability policies. Waiver of subrogation in favor of the additional insure policies.
2. The General Liability policy is primary and non-contributory 30-day Notice of Cancellation applies to the Certificate Holder provisions.
3. General and Excess Liabilities do not contain a Labor Law/ injury to employees or subcontracted employee exclusion.
4. No work or service to be performed until or unless certificates evidencing sufficient coverage of workers’ compensation, commercial general liability and property damage are received evidencing Management and the building owner as Additional Insured parties.
5. All work to be done as an independent contractor and not as a servant or employee of the building owner or Management.
6. Management reserves the right to cancel this order if not filled promptly.
7. Vendor/contractor, at its own cost and expense, agrees to defend, indemnify and hold management, as well as the owner of each building where the vendor supplies materials or the contractor performs work, and each of their respective members, directors, officers, employees, agents and representatives, harmless from and against any and all claims, loss, damages, costs (including attorneys’ fees, witness fees and court costs), expenses and liability (including statutory liability), resulting from injury and/or death of any person, damage to any property, or loss of any property, arising out of any act, error or omission, negligence, potential claims and losses, breach of any statute, code or rule, or breach of contract, in connection with the operations of the vendor, contractor and/or its subcontractors. The foregoing shall include injury or death of any employee of the vendor, contractor or subcontractor and shall not be limited in any way by an amount or type of damages, compensation or benefits payable under any applicable workers’ compensation, disability benefits policy or other similar employee benefits acts. No provision requiring the furnishing of insurance herein or in any written contract entered into by the vendor, contractor, or subcontractor, shall be construed to affect, impair or excuse such entity’s obligation to indemnify and hold Management and the building owner harmless as provided herein or in such contract. In addition, vendor/contractor agrees to waive all rights of subrogation against Management or the building owner with respect to any and all losses, casualties, damages and liabilities.
Line of Site

Response

   We start with the fundamental proposition that alarm companies do not and will not name their customer as additional insured. The above actually also includes an indemnity obligation, which alarm companies also should not be stuck with.
   Alarm companies are not insurance companies and are not reinsurers or excess carriers for the customer's insurance company.
   Sounds right, correct? But, do you want the job or not? The answer to that question will often override good sound judgement and cause you to risk it all just to get the work; a decision you are certainly permitted to make, for yourself, just don't ask me to approve it.
   Concierge Clients send in these contracts for review daily. The response is usually the same, no insurance and no indemnity. However negotiations and compromise is usually required to get and make the deal. You are not in the best position to negotiate, I am. You don't represent thousands of alarm companies and you can't, with any level of authority, explain what industry legal standards are when it comes to the contract terms. If you are a Concierge Client I urge you to take advantage of the Concierge Program and send your contract challenges in for review. If you're not a Concierge Client, I strongly suggest you join, and use the program.

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