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 white list ken@kirschenbaumesq.comsecure.mybiz.com and mybiz.com 
**************************************************************************************************
more on additional insureds / more on how much authority does your sales force / what happens to contract when sub moves
July 3,  2017
*************************
more on additional insureds from June 20, 2017 article
*************************
Ken,
    In response to the additional insureds being added and any new issues.  We haven’t seen any big changes or issues with insurance carriers adding additional insured, we always try to build the “Blanket”, “Primary Non-Contributory”, “completed op’s” etc. endorsements into the policies so that in the event an insured’s client requests we know the insurance company can offer and there won’t be any issues.  Not all insurance carriers are filed to offer the specific endorsements which may have been the issue in the below circumstance. 
    The insurance broker needs to understand who and where the insured is working.  For example, property managers and GC’s in downtown Chicago have specific endorsement requirements that not all insurance carriers can handle, so when placing the insurance for the client we need to be aware of the carrier and their capabilities.   Obviously these additional insured endorsements come at a cost but the last thing we want is a client to lose a potential contract due to not being able to meet their insurance requirements.
    Thanks!
Jeff Schulz, CIC
J.Krug & Associates, Inc.
Insurance, Risk Management, Financial Services                                  
Mount Prospect, IL 60056
(847) 818-7508
www.jkrug.com
jschulz@jkrug.com
*****************************
more on how much authority does your sales force have from June 6, 2017 article
*****************************
Ken
    You're still a side stepper. Regarding sales forces (and I’m not talking about one man shops like to where you are side stepping, to which this obviously doesn’t apply since the salesman IS the owner), the sales training you refer to is exactly what we do. I still wouldn’t recommend empowering them to make business decisions like this, some of which could end up being catastrophic for the Company. Your spin notwithstanding, decisions like that should be for the owners, period.
    As for representing AFA in the past, yes you did do a great job. You also had good contracts to work with, and against Atlantic Mutual—if I recall correctly—a compelling witness. 
Bob Kleinman
AFA Protective
***************************
Response
***************************
    Not to beat a dead donkey, but most alarm companies can permit the sales force some leeway in contract modification.  It's a matter of training. And, there is no reason to believe the "owner" is any better equipped to make contract changes than the sales rep.  Requiring the contract to be signed by an officer back in the office comes with its own risks, such as customer changing its mind, which it can do anytime prior to getting a fully executed contract back.  Also keep in mind that the company officer, playing Monday night football coach, cannot make any changes to the contract once it's signed by the subscriber; not without getting the subscriber's written consent to the change.  Sales reps should be knowledgeable about what changes are permitted by the company, such as changing the term from 5 or 10 years to something less, or what extra equipment can be added at little or no extra charge, or what the bottom line is on the monitoring or service charges.  
    What about the "protective provisions"?  It gets a bit more complicated when negotiating changes to the Exculpatory Clause, Limitation of Liability Provision, Indemnity, and others.  But what makes you think that the company officer is any more knowledgeable then the sale rep?  You may think so because you have a law degree and actually practice a little.  But most companies don't have a lawyer on staff to handle subtle changes in the protective provisions.  That's why I get several calls a week to assist.  The subscriber is important enough to engage in some discussion about contract provisions.  But that is a lot different than requiring every contract to be brought back to the home office for signature.  
*************************
what happens to contract when sub moves
************************
Ken
    If someone is in a contract with me for a burglar alarm, and the customer sells their house and moves to Arkansas, what happens with the contract?
Dan
*************************
Response
*************************
    What happens to the contract?  Probably the same thing that happens to an ice cream cone that you leave sitting in the sun too long.  You're left with the cone.  In your case, you're lett with the paper.  
    Unless you've changed the Standard Form Agreement permitting termination on sale of the house, the contract remains extant [still enforceable].  But being enforceable and being able to collect are two very different things.  Certainly you can pursue a lawsuit [or arbitration if you have the Standard Form Agreement] because the subscriber remains liable on the contract for the term of the contract.  If you do pursue, I'd say these are the chances

    To have my firm represent you on collection matters contact our Supervising Paralegal Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com
**************************

THE ALARM EXCHANGE

alarm classifieds alarm security contractsThis area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business  brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;

There is no charge to post a listing here.Include your contact information, phone, email and web site.  If you would like to submit a posting, please send an email to ken@kirschenbaumesq.com.  To create a reciprocal link to our website, click here.
**************************************************************************************
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
516 747 6700
www.KirschenbaumEsq.com
oovoo account: KenKirschenbaum

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 white list ken@kirschenbaumesq.comsecure.mybiz.com and mybiz.com 
**************************************************************************************************
more on additional insureds / more on how much authority does your sales force / what happens to contract when sub moves
July 3,  2017
*************************
more on additional insureds from June 20, 2017 article
*************************
Ken,
    In response to the additional insureds being added and any new issues.  We haven’t seen any big changes or issues with insurance carriers adding additional insured, we always try to build the “Blanket”, “Primary Non-Contributory”, “completed op’s” etc. endorsements into the policies so that in the event an insured’s client requests we know the insurance company can offer and there won’t be any issues.  Not all insurance carriers are filed to offer the specific endorsements which may have been the issue in the below circumstance. 
    The insurance broker needs to understand who and where the insured is working.  For example, property managers and GC’s in downtown Chicago have specific endorsement requirements that not all insurance carriers can handle, so when placing the insurance for the client we need to be aware of the carrier and their capabilities.   Obviously these additional insured endorsements come at a cost but the last thing we want is a client to lose a potential contract due to not being able to meet their insurance requirements.
    Thanks!
Jeff Schulz, CIC
J.Krug & Associates, Inc.
Insurance, Risk Management, Financial Services                                  
Mount Prospect, IL 60056
(847) 818-7508
www.jkrug.com
jschulz@jkrug.com
*****************************
more on how much authority does your sales force have from June 6, 2017 article
*****************************
Ken
    You're still a side stepper. Regarding sales forces (and I’m not talking about one man shops like to where you are side stepping, to which this obviously doesn’t apply since the salesman IS the owner), the sales training you refer to is exactly what we do. I still wouldn’t recommend empowering them to make business decisions like this, some of which could end up being catastrophic for the Company. Your spin notwithstanding, decisions like that should be for the owners, period.
    As for representing AFA in the past, yes you did do a great job. You also had good contracts to work with, and against Atlantic Mutual—if I recall correctly—a compelling witness. 
Bob Kleinman
AFA Protective
***************************
Response
***************************
    Not to beat a dead donkey, but most alarm companies can permit the sales force some leeway in contract modification.  It's a matter of training. And, there is no reason to believe the "owner" is any better equipped to make contract changes than the sales rep.  Requiring the contract to be signed by an officer back in the office comes with its own risks, such as customer changing its mind, which it can do anytime prior to getting a fully executed contract back.  Also keep in mind that the company officer, playing Monday night football coach, cannot make any changes to the contract once it's signed by the subscriber; not without getting the subscriber's written consent to the change.  Sales reps should be knowledgeable about what changes are permitted by the company, such as changing the term from 5 or 10 years to something less, or what extra equipment can be added at little or no extra charge, or what the bottom line is on the monitoring or service charges.  
    What about the "protective provisions"?  It gets a bit more complicated when negotiating changes to the Exculpatory Clause, Limitation of Liability Provision, Indemnity, and others.  But what makes you think that the company officer is any more knowledgeable then the sale rep?  You may think so because you have a law degree and actually practice a little.  But most companies don't have a lawyer on staff to handle subtle changes in the protective provisions.  That's why I get several calls a week to assist.  The subscriber is important enough to engage in some discussion about contract provisions.  But that is a lot different than requiring every contract to be brought back to the home office for signature.  
*************************
what happens to contract when sub moves
************************
Ken
    If someone is in a contract with me for a burglar alarm, and the customer sells their house and moves to Arkansas, what happens with the contract?
Dan
*************************
Response
*************************
    What happens to the contract?  Probably the same thing that happens to an ice cream cone that you leave sitting in the sun too long.  You're left with the cone.  In your case, you're lett with the paper.  
    Unless you've changed the Standard Form Agreement permitting termination on sale of the house, the contract remains extant [still enforceable].  But being enforceable and being able to collect are two very different things.  Certainly you can pursue a lawsuit [or arbitration if you have the Standard Form Agreement] because the subscriber remains liable on the contract for the term of the contract.  If you do pursue, I'd say these are the chances

    To have my firm represent you on collection matters contact our Supervising Paralegal Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com
**************************

THE ALARM EXCHANGE

alarm classifieds alarm security contractsThis area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business  brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;

There is no charge to post a listing here.Include your contact information, phone, email and web site.  If you would like to submit a posting, please send an email to ken@kirschenbaumesq.com.  To create a reciprocal link to our website, click here.
**************************************************************************************
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
516 747 6700
www.KirschenbaumEsq.com
oovoo account: KenKirschenbaum