Question:

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Ken

    We are an alarm dealer in  NY and have been for over 35

years.  We use a standard alarm contract.  Recently 2 large customers, a

state agency and a college, refused to sign our contract without

deleting the Third Party Indemnification and Subrogation paragraphs.

    What would you charge to review our contracts and make appropriate

recommendations?   What would we expect for time frames to do this since

both customers are currently being monitored out of contract time

frames? 

    What do you charge to remain on retainer as these issues occur?

Thank you for the courtesy of your response.

Laurie   

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Answer:

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    I assume the Standard Alarm Contract you use is mine.  That's the only standard contract I [and lots of others] recognize. 

    The indemnity provision [though mine is not limited to third party - so I don't know if you have my contract or just used wrong terminology] typically is one of the more problematic provisions.  As long as you have E&O insurance, and your policy does not have an endorsement requiring the production of a carrier approved contract form as a condition precedent to coverage on a claim, you can omit the first sentence of the indemnity provision.  That first sentence is in fact the indemnity provision.

    You can also omit the waiver of subrogation, but I'd fight a little harder to keep that provision in the contract.  Most lawsuits against alarm companies are brought by insurance companies suing under their subrogation rights.  Incredibly some of these insurance companies even write for the alarm industry, such as Hartford [and don't deserve alarm industry support].  The waiver of subrogation clause is typically enforced so you should try and keep in the contract.

    I charge an hourly rate to review contracts I didn't write or changes requested by subscribers. 

    As far as a retainer, not necessary.  And, feel free to send in your inquiries by email or call me.  Lots of inquires are handled daily without charge.  If there is a charge I'll let you know.  If inquires are of general nature I will use them in this forum and there will be no charge.