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Subscriber in default for failing to comply with insurance procurement provision   
November 7, 2018
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Subscriber in default for failing to comply with insurance procurement provision
            Your contracts, if you use the Standard Form Agreements, have an insurance procurement clause.  This provision requires your subscriber to obtain insurance and name you as an additional insured.
            The procurement clause serves at least two purposes.
            1.  Elsewhere in the contract the subscriber agrees to indemnify you.  The insurance will ensure that the indemnity is backed by insurance coverage.
            2.  If you are named as an additional insured the subscribers carrier will not be able to pursue a claim// against you for subrogation.  An insurer cannot sue its own insured for reimbursement on a cover claim.
            The insurance procurement clause is one of the more challenged provisions, and one that you may have to give up.  You should resist waiving it and if other protective provisions are also challenged you need to be sure that you retain enough protection in the contract so that your liability risk is not unreasonably increased.
            I get a call now and then asking if an alarm company can terminate a subscriber during the term of the contract for no reason other than the subscriber is bothersome.  One way out of the contract without you being in default is to ask for the insurance policy required by the contract.  Most subscribers don't object to the insurance procurement provision, but unfortunately, most don't bother to get the insurance.  The subscriber's failure to carrier the insurance and name you as an additional insured is an incurable breach of contract.  The breach can't be cured because the insured won't be able to get you named retroactively.  Prospective insurance cannot retrospectively cure the default.  This breach by the subscriber will enable you to treat the subscriber in default, just as if payment was not made, and you will be able to invoke the remedies in the Legal Action paragraph to recover the balance of the contract.
            Let K&K's collection department know if we can help.  If you have our Standard Form Agreements contact our head paralegal Kathleen Lampert at 516 747 6700 x 319 or email her at  If you don't have our Standard Form Agreements, or if they are not updated [they should have the arbitration clause] then call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 or email, or go on-line and order your up to date contracts

Party - if you're planning on coming to our annual holiday party on December 14, 2018 please rsvp now by emailing our office manager Amy at   Hopefully you are acquainted with Amy - she processes and oversees our billing and invoicing clients.​​ 

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
516 747 6700