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 ****************************** You should not indemnify your cs without limits April 9, 2025 *********************************** You should not indemnify your cs without limits *********************************** It’s time for you to look at your relationship with your central station. You have undoubtedly signed the central station’s Dealer Agreement. Whether you realize it or not you have agreed to indemnify the central station if a claim is brought against it by one of your subscribers. Unless you have used the K&K Rider to Central Station Dealer Agreement, and it was accepted by the central station, your indemnity obligation has no limits. Even if you carrier E&O insurance, which you should do, that E&O policy has limited coverage; your indemnity obligation does not. It’s simple arithmetic; there is a claim by the subscriber; turns out the central station missed the signal, ie, it really was negligent. Claim is for over your one million dollars coverage. You are on the hook for the claim over and above the policy limit. And, if your carrier tenders the full policy you are on the hook to continue the defense for the central station, and you if in the lawsuit, on your own. It’s simple. You cannot allow yourself to be in this position. It doesn't even make sense for a central station to put you in such an untenable position because it carries E&O coverage, a lot more than you do as a Dealer. If you end up having to pay over and above your insurance coverage and end up going out of business, how does that help your central station; it loses a dealer. And who really has the benefit? Not the central station, but it's E&O carrier who gets to come after you for the defense and damages. Are you in the "reinsurance" or "excess carrier" business? I don't think so. Do not let another day go by without looking into this and getting a clear, in writing, modification of the Dealer Agreement on this issue. I thought all the central stations were on board with this modification of their Dealer Agreement, but apparently some aren’t; at least one fairly well known one who I won’t bother mentioning, yet. But the good news is that the most reputable and largest central stations do understand this issue and do accept the provision in the K&K Rider to Central Station Dealer Agreement. These major central stations I will name, Rapid, COPS, Nationwide, USA, NMC, Beckler. You will find these central stations listed on The Alarm Exchange. Any central station that will not accept this simple proposition will not be listed on The Alarm Exchange and if one is on there now please let me know so it can be removed. That’s how strongly I feel about this issue. You should too and you need to clarify your relationship with your central station today, before you get a claim and risk losing your business because of mistake you didn’t make [other than ignoring this advice and doing something about it]. ******************************** 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
