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 ****************************** Is additional insured meaning same as additional interest? December 16, 2022 ********************** Is additional insured meaning same as additional interest? *********************** Ken We received a cert of insurance that listed us as "additional interest" not additionally insured, the Progressive agent said they do not have additionally insured as a choice in their drop down menu. Doesn't sound like the same thing, is it the same? Thanks, Jeff ********************* Response ********************** This is a great question, for one of two [or both] reasons: 1) it’s important to all companies or 2) it’s so technical I’m not sure of answer. When you agree to sign someone else’s contract form it’s likely you are being asked, required, to name them as an additional insured on your insurance policies. Sometimes, rarely, that’s OK, but most likely not OK. When signing someone else’s form a contract [or when specifically asked to include the additional insured language for the customer on your contract – amending your contract] you need to be very careful. The first step is checking with your insurance broker. You will have to send the broker the contract and ask if you have or can get the required insurance coverage. Then, if you can, you can ask if the carrier will permit adding the customer and at what, if any cost. You can’t look to find out about the insurance after you’ve signed the contract. And, if the customer finds out you didn’t get the insurance it won’t have to pay you. The insurance requirement in customer contracts will likely have lots of insurance that you already have, such as vehicle insurance and workers comp. There’s really no reason the customer needs to be an additional insured on those policies [that I can think of]. Then there’s the general liability, which the customer will want to be additional insured. Most customers asking for that also demand that your policy is primary, even for them, and you need to be careful that the additional insured status is limited to your liability for your work, not everyone else’s work. There is no reason your policy should come ahead of the owner or GC if it wasn’t your work that contributed to the injury or loss. I defer to the insurance brokers on this for better [and maybe more accurate] discussion. Additional interest does not seem the same to me as additional insured. I think you’d have to read the Endorsement Declaration that the broker generally provides. There is a box, bottom left usually, that provides space to list Additional Insured or sometimes Additional Certificate Holders. If you see Additional Certificate Holder you have to look at the fine print in the Declaration to see if it states that Additional Certificate Holders are also Additional Insureds. I don’t know if Additional Interest will mean Additional Insured. Here is one source of confusion. Some contracts will only require that the owner or GC be a certificate holder. That usually means that all they want is to be notified when the policy is expiring, being canceled or terminating, requesting 15 or 30 or more days’ notice before termination of the policy is effective. Since the insurance is required by the contract you will be in breach if you don’t continue the coverage or get equal replacement coverage. Additional insureds will be entitled to notice of cancellation or non-renewal or expiration, same as the primary policy holder, which would be you. I like to stay “in my lane” so the insurance brokers may have better explanation and they are all welcome to contribute. We haven’t heard from any of them in a while. Maybe they can chime in on the state of coverage in the industry. I’ve seen at least one new carrier name handling claims [in the same inept way I might add]. ******************* To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email 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. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
