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MORE ON ADDITIONAL INSURED ISSUE FROM FEBRUARY 19, 2016
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 Ken
    So .... the standard form agreements require the subscriber to name the alarm company as additional insured. I have never known any of my subscribers to have actually done that. ( I do primarily residential ... now).
    That brings up a lot of questions ... but basically .... How does it benefit the subscriber or  ......  how does the alarm company "entice"  or  "enforce" the requirement? And if it isn't done by the subscriber (which I'd bet 99% of subscribers DON'T do it) what are the consequences? If they don't do it .... would that be a favorable or unfavorable advantage/disadvantage for the alarm company or subscriber in the event of a claim by either the subscriber of alarm company? And if it IS in the agreement and widely NOT complied with, have you ever had a case where non compliance became an issue?
    Sounds like it could be complicated. For instance, a claim is made by the subscriber but because the subscriber didn't conform to the requirements of the contract, if could be an advantage for the alarm company (?).  .... or ..... it depends upon the type of claim (?) or any one of a dozen other scenarios. 
Gene
Reliable Alarm 
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RESPONSE
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    An insurance procurement clause is designed to benefit the alarm company, not the subscriber.  However, there is benefit to the subscriber because elsewhere in the Standard Form Agreement the subscriber is required to indemnify the alarm company.  Obtaining the insurance and naming the alarm company would go a long way in satisfying the indemnity issue.  And, Yes, we have had cases where the insurance procurement clause is an issue.  You are also correct that most subscribers do not obtain the additional insured certificate and they are in breach of the Standard Form Agreement.
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QUESTION
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Ken,
    I have been monitoring the discussion about listing the central station as an additional insured. Would you please elaborate more on a sentence in one of your replies?  It was, "If you don't name the central station as additional insured you can't be sure that you will be covered for your indemnity."  How does this exactly help or potentially hurt.  Maybe a scenario type explanation might help me here.
    Thanks,
RB
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RESPONSE
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    Too many dealers don't realize that they have agreed to indemnify their central station [cover defense cost and damages in a lawsuit] if the dealer's subscriber sues the central station.  That indemnity applies even if the central station was negligent in monitoring or other services.  One way, the best way, that an alarm dealer will be covered for that contractual indemnity commitment is to name the central station as an additional insured on the dealer's policy.  The insurance coverage should cover claims arising form the dealer's involvement and not serve as a primary policy for claims against the central station related to other dealers' subscribers.  Any insurance broker listed on The Alarm Exchange will understand this and be able to obtain the necessary certificate of insurance. 
    This may be a good time to remind dealers that central stations are not the only vendors dealers have agreed to indemnify.  If you've been following the issue regarding DMP then you know that if you're a DMP dealer you've agreed to indemnify DMP from claims.  How have you planned and protected yourself for that indemnity commitment?  Check your insurance coverage or find another manufacturer.  
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COMMENT
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Ken
    Not True....
As an additional insured; that additional insured is a part of the policy.  If the plumber falls (nothing to do with you) and cracks his/her butt; the contractor is the additional insured....the plumber can sue both policies.  So can you add additional language to the certificate you give the additional insured?  Most likely not depending on what state you live in.
some Yahoo
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QUESTION
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Ken
    I sent this request to my insurance agent:
    “Please share your thoughts on whether an alarm dealer should name the central station as an additional insured to avoid a battle of carriers over who is primary and who is secondary or excess if there is a claim.”
    Here is the reply:
    “We do not recommend that our insured Installers named the Monitoring Company as an Additional Insured.  In fact we always request that our Insured Alarm Installation Companies have the Monitoring Company name them as Additional Insured.  You do not want to pick up the liability of a flawed monitoring. If it is required for  you to name your Monitoring Company as an Additional Insured, we will be happy to send that request to your insurance carrier.  We are not sure if they will comply.” 
    Please withhold my details from any public discussions.     

    I prefer to remain anonymous

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RESPONSE
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    You need to tell your broker it doesnt work that way and you are in danger if you dont name the cs.  You and him should call me on conference call next week - should take 3 minutes and I'm not charging you.
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