comments on Calif auto renewal [it's not restricted]
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Ken,
Alarm company operators are exempt from the requirements of California B&P Code 17602 regarding automatic renewals. Section 17605(d) of the same Article exempts alarm company operators. This change was as a result of the California Alarm Association's intervention when the legislation was introduced. While following the guidelines in the legislation may be a good business practice, it is not mandated for alarm company.
Alan Pepper, Esq.
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Ken,
I believe that in California there is no law preventing automatic renewals, yet. However the Department of Consumer Affairs has made it clear that for residential customers, after completion of the initial term, should be able to cancel their contract with 30 days notice.
Jerry Lenander of the CAA could give you more details on the CAA and DCS agreement.
Rod Uffindell
Denalect
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comment on additional insured
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re: Additional Insured's Indemnify / Sub-Contractor's Including Central Stations;
Hi Ken
Thanks again for your Security e-newsletter---- The Subject of a contract requiring Indemnify E&O under a Additional Insured certificate are always best to have both parties name each other. In today's Liability World Both a General Liability E&O and Network Security Liability E&O Coverage's are needed to respond to acts or exposures requiring Indemnity. When the Insurance Company investigates a notice of a claim the coverage will apply to the responsible party, if no coverage is found –you are self Insured to Indemnity negligence.
Alarm Security Indemnity Liability should extends to Phone (pots) Line, VoIP, IP Internet, IP Cell & IP / Radio Wireless Consulting , Installation, Service & both IP and all Monitoring Communications. For More information on Insurance Coverage's Questions can be sent to me via Ken's Kirschenbaum e-newsletter .or mjk@mjkinsurance.com
Best Regards;
Mike Kelly #0582597
Michael J. Kelly Insurance Agency
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comment on long term contracts
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Ken
The frenzy of strange answers and questions to the contract or no contract issue is surprising. It is really quite cut and dry. Like every business you CYA with a contract and that includes the fact that you are monitoring an alarm system for a monthly fee that has a "term". For obvious reasons there is a term and expiration. You don't cut a customers monitoring off at the end of the term. You contact them for up sells and new products and a renewal at a fair rate. If they do not pay or want to re-negotiate, either negotiate or send them a Certified Letter of cancellation (CYA). For Heaven's Sake people, be professional. You sign term contracts with auto renewal at your gym, software providers, and others. Isn't providing monitoring as important?
On a more important note and speaking of CYA, we have become more professional (I have over 40 years in the business) with licensing, training, and personnel improvements. You should include in every contract you write, either printed or manually, that it is recommended to contact every opening and having secondary protection such as motion detection AND if you are installing smoke/fire protection that you recommend installing as many smoke detectors as NFPA requires even though the electrician is installing high voltage units AND that if the contract calls for a lesser amount that it is at the customer request to do so. Why? It is professional and it could save you a major lawsuit which you would have to hire Ken to maybe save your A. You could end up with someone like Jeff Z consulting for the plaintiff and that could be your demise. (Note: Jeff, I think you are one of the best professionals in this business and it is because of guys like you and Ken that the industry is becoming more professional every day.)
Glenn Smith
Alarm Service Co. of N.J.
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Question re unsavory salesmen
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Hey Ken,
Got a question on alarm companies having salespeople running wild on re-writing up customers who are already under another contract. I have customers call me from time to time about canceling their contracts and I tell them
that their not out of their contract or that someone has installed an alarm in their home and that they need to cancel the existing alarm. It seems to me that the salespeople do not care as long as they get paid and being at the expense of the customer and dealer. In other words they are now paying for two contracts and they are unaware of this.
Why is it that a salesperson is able to get away with this. What if anything can be done about this?
Rod Rushing
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Answer
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You can sue your subscriber who cancels before the end of the contract term. You can sue the other alarm company for tortious interference [not an easy lawsuit to prosecute or win]. You can complain to your consumer affairs or licensing agencies.
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electricians and wiring
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Ken
I don't want to open can of worms, or start a fight, but when electricians try to take your work claiming "it has wires", then you can get back at them and point out that if they are not fingerprinted they break law and you will notify the authorities.
Dusan