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 ****************************** Will central station name dealer as additional insured December 24, 2025 **************************** Will central station name dealer as additional insured **************************** Ken, We are currently under contract with Becklar Professional Monitoring to provide services for our customers through our company. As part of this relationship, we have supplied our Certificate of Insurance (COI) and named Becklar as an additional insured. However, Becklar has indicated they are unable to name us as an additional insured. I am aware of the “Three-Way Central Station Monitoring Agreement” and wanted to ask if this form would be more appropriate for our circumstances. Would this agreement help clarify responsibilities and provide the necessary protection for all parties involved? Please advise on the best approach for this situation. For reference, we are a member of your Concierge Program. Thank you for your guidance, Sincerely, name withheld ************************* Response ************************* Your central station will not name the dealer as an additional insured, and for good reason. The dealer, on the other hand, and as you point out, will be required to name the central station as an additional insured on its E&O policy. You might ask if this is something Becklar came up with or is it standard procedure in the industry? The answer is that it's standard procedure. Do not expect any exception. More importantly, be certain you understand the insurance responsibility and comply with it. Let's take a step back; dealer names central station as additional insured; it better add the central station as an additional insured, because the dealer has also agreed to indemnify the central station from claims, including claims that the central station was negligent in its monitoring responsibility. Indemnity without back-up insurance is just plain stupid; don't do it. Get the insurance. But here is where a best practice is important. You need to limit your indemnity to your insurance coverage, and the only way you're going to do that is with the K&K Rider to Central Station Dealer Agreement. If your central station won't agree to sign the Rider then you have only one move as far as I am concerned, change central stations. As far as the central station naming you as an additional insured, it would make no sense. Not only hasn't the central station agreed to indemnify you, you have agreed to indemnify the central station. The central station plays a limited role in the overall security or fire alarm services; it monitors only. But it's the dealer who did the design, installation, provided service and used a proper contract with the subscriber. Central stations depend on the dealer to use a proper contract, in most instances a Kirschenbaum Contract TM, to protect the central station. Of course the dealer is also protected as well as any other subcontractors, and includes third party vendors involved in the monitoring services. You mention the "Three Party Central Station Agreement". That agreement is used by the central station when the dealer does not use a proper contract or no contract at all. That agreement provides direct contractual protection for the central station from the subscriber. The K&K Dealer Agreement has an added provision that extends some protection to the dealer too, but not enough. Dealers need to be using their own contract with the subscriber, and when they use a K&K Contract the Three-party Central Station Agreement is not needed. If your central station thinks it's needed anyway you should probably change central stations, because they are getting their advice from someone who doesn't understand the contracts. The only time a Three-Party Central Station Agreement is appropriate, even if you are using your own K&K agreement with the subscriber, is when the central station is issuing a UL Certified Certificate for monitoring. ************************* STANDARD FORM AGREEMENTS: To order up to date Standard Form 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. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / 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. ************************** 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
