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 whitelist ken@kirschenbaumesq.com ****************************** what is cost to increase to limitation of liability August 29, 2026 ********************* what is cost to increase to limitation of liability ********************* Ken I have a customer with a question using the All In One Commercial Agreement- Section # 24 Specifically "IF SUBSCRIBER WISHES TO INCREASE HSI'S AMOUNT OF LIMITATION OF LIABILITY, SUBSCRIBER MAY, AS A MATTER OF RIGHT, AT ANY TIME, BY ENTERING INTO A SUPPLEMENTAL AGREEMENT, OBTAIN A HIGHER LIMIT BY PAYING AN ANNUAL PAYMENT CONSONANT WITH Alarm Co'S INCREASED LIABILITY. " Customer is asking what would the annual amount be and what would be the increased liability? Please advise any info you can provide would be helpful. Thank you! name withheld *********************** Response ************************ The response is most certainly more interesting than the question. The question is easily answered in one of two ways: 1. The K&K contract clearly provides that 6 times the monthly charge sets the limit, so by paying a higher monthly charge the limit increases. 2. You can suggest to the inquiring customer that you will price the level and coverage requested by the customer with an insurance company, if you can find one, and add the cost of the premium to the cost of the alarm service. Either of these option will be very appealing to the customer. Both are costly and the customer should realize that it already carriers insurance and doesn't need to pay for duplicate coverage. You can point out that you are not an insurance company and that you are willing to accept a certain level of liability exposure commensurate with the service you are providing and cost of the service. You're not willing to accept more than $250 for a basic system for which you are charging $40 a month. However, increase the level of equipment and service, warranting a monthly charge of $500, and then you will accept $3000 limitation. The customer is likely to realize it's not worth trying to increase the limitation. When I negotiate challenges to the contact, which I do several times a day, mostly for Concierge Clients, I will significantly increase the limitation for damage negligently done by the alarm company while it is on the subscriber's premises. My reasoning is that an alarm company should face the same risks as other contractors working on premises should expect. Why bother offering the right to increase? That is really hard to answer. Originally the concept was borrowed from early non-alarm situations, transportation cases for the most part. New York, in particular, required an option to increase so that the limitation appears to be something that could be negotiated and increased. Most modern courts don't insist on the higher limit offer, but do require that the limitation be highly visible, conspicuous in the agreement. Drafting the provision most be precise and keeping it accurate and up to date in all the states, many of whom have their own judicial requirements, quite the undertaking. You can rely on Kirschenbaum Contracts TM to continuous review and update this and other provisions. Using out dated contracts is not a good idea because you never know when you will need to rely on the limitation of liability or one of the other protective provisions in your contract. ********************** STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: 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 www.KirschenbaumEsq.com
