There may be some confusion regarding the use of the indemnity provision in
your contracts.  The indemnity provision has been covered in numerous articles
[see the article page on my web site for those articles].
      Generally, the indemnity clause provides that the subscriber agrees to
hold the alarm company harmless in the event that the alarm company is sued for
its services under the contract, etc.
     The indemnity clause is probably the single most challenged clause in the
contract.  By that I mean that this clause, more than any other, is likely to
be objected to by your subscriber.
     It will come as no surprise that most alarm company owners and their
salesmen will typically agree to modify terms in the contract in order to make
the sale.  In some cases, the contract is dispensed with altogether to make the
deal, and in the case of municipal subscribers and large general contractors,
alarm companies often end up signing the subscriber's contract form. [and then
end up indemnifying the subscriber instead of the other way around].
     Faced with objection to the indemnity clause should you agree to omit it?
There are a few simple questions you need to answer in order to make an
informed decision.  (1). Do you have errors and omissions insurance? (2). Does
your errors and omissions insurance carrier cover you for a claim even if you
cannot produce an approved contract with the subscriber who makes a claim
against you?  (3).  Is the revenue under the contract significant enough, or is
the subscriber important enough to your business, to justify the added risk of
losing the indemnity clause?
     You need to be able to answer YES to all three questions.  If you can't
then don't omit the indemnity clause.

     Also, do not omit the indemnity clause from your standard form contract.
This is an integral provision and your insurance carrier will definitely be
looking for that clause when reviewing your contract for underwriting
consideration.  It's one thing to omit the clause for a particular subscriber,
but there is no reason to omit it from your form contract.