KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on Limitation of liability challenge / cs webinars continue / Why you should use our central station
July 29, 2020
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Next webinar: starts at noon ET. Register now:
Cops Monitoring - July 29, 2020
https://attendee.gotowebinar.com/register/5614688421138368523
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Comment on Limitation of liability challenge from article on July 17, 2020
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Ken,
Responding to your comment about the $250.00 limitation of liability provision.
In the last version/reprinting of the Three Party Monitoring Contract [a contract prepared for the central station] that we provide to our dealers for customer signature, I increased the limitation to $500.00. In addition, when challenged by consumers for contract concessions/modifications, we will raise it to $1000.00 without an additional fee as provided for under the terms of the contract.
Your readers might ask why? Simple; I give up nothing by doing this. First, the contract says that the limitation only comes into play once the service provider has been found liable. This alone is a substantial hurdle that must be met. Second, most GL/E&O policies have a $1000.00 deductible, so if liability exists my company would have to pay the first $1000.00 anyway, if not to the consumer, the insurance company.
Finally, think about it. My customer is the alarm dealer who pays us thousands of dollars every month. If my company made a mistake that was so small that the consumer did not want to go to its insurance company and the dealer agreed that it is a valuable customer, why would I not want to make not only the dealer happy, but the consumer happy as well. We routinely settle items in partnership with our dealers only when there was a mistake, the dealer agrees and it makes business sense for USA.
Bart A. Didden, President
U.S.A. Central Station Alarm Corp.
Port Chester, NY
Milford, CT
St. Paul, MN
Pasco, WA
877-872-1266
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Response
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There is nothing wrong with increasing the limitation of liability to $1000 or some other nominal amount; there's also no reason to do that, other than from a marketing and sales perspective. I suppose one could accuse me of being callous for suggesting there is no real difference between $250 and $1000. If it makes the sale then by all means, go for it.
But your comment leads me to address a far more important point. The Three Party Monitoring Agreement is a contract of last resort for a central station to be used only when the Dealer doesn't have a proper contract with the subscriber. If the Dealer is using a Standard Form All in One then both the dealer and the central station are well protected, contractually. A central station that offers and provides its own monitoring contract to the Dealer isn't doing the Dealer any favors.
A Dealer who relies on the central station's Three Party Monitoring Agreement is foolish [and that's me being kind]. That central station monitoring contract is designed to protect the central station, and any protection afforded the Dealer is incidental, A Dealer needs to use its own contract with the subscriber, not the monitoring contract provided by the central station. Perhaps the most persuasive reason a Dealer needs to be using its own All in One is because the central station form does not create any value for the Dealer; no equity that RMR contracts are designed to create. What can you look for to confirm this? Look for RMR to be paid by the subscriber to the Dealer; you won't find it.
Dealers that rely on their central station for legal advice are also making a mistake. Certainly some central stations provide more guidance and assistance than others in areas other than monitoring the accounts, but a Dealer should be smarter and have a relationship with a knowledgeable alarm industry attorney. My neighbor's tree fell in my yard. Do you think my gardener is the best place to ask legal advice regarding responsibility to remove the tree? Many of you are thinking, sure, and you might be right, some of the time.
Well intentioned central stations do offer lots of advice. The smart central stations, those you should rely on 100% of the time, refer you to K&K. How about that.
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Central station webinars
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Not all central stations on The Alarm Exchange have opted to participate as of yet. You still have time. Contact our Concierge Coordinator Stacy Spector,Esq at SSpector@Kirschenbaumesq.com or 516 747 6700 x 304. You just might pick up one or more dealers.
And, speaking of dealers, selecting the right central station is important; there’s lots to consider. K&K is saving you the trip to Vegas and bouncing from one booth to another, stuffing your pockets with candy and pens [not that there is anything wrong with that]. You have and you will be hearing from the best of the best in this webinar series.
Keep in mind that any legitimate central station is going to require you to sign a Dealer Agreement. This isn’t a car rental contract at the airport. It can be modified and you need to ask for those modifications. I’ve designed a Rider that applies to every central station Dealer Agreement because it includes all the provisions a dealer should be asking for and is entitled to. If you are negotiating with a new central station or re-negotiating with your current central station, be sure to get the Rider. It’s $500 and well worth it. Order it at www.alarmcontracts.com in the Monitoring Centers Contracts category.
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Central Station* 2020 webinar series K&K is hosting webinars by central stations, one at a time, who will address "why you should be using our central station". Each webinar will be approximately 20 minutes and then Q&A opportunity. See what your central station has to offer or what others offer, enabling you to choose the right central station for you. You should be using a central station listed on The Alarm Exchange to be assured of quality and more importantly, accountability.
* only central stations on The Alarm Exchange will be invited to participate
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Register Now for the CS webinar series:
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Cops Monitoring - July 29, 2020
https://attendee.gotowebinar.com/register/5614688421138368523
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Security Partners - July 30, 2020
https://attendee.gotowebinar.com/register/2765625095170808591
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National Monitoring Center - July 31, 2020
https://attendee.gotowebinar.com/register/2527889790544756495
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Electronix Systems Central Station Alarms - August 6, 2020
https://attendee.gotowebinar.com/register/2606752262202465549
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Central station 2020 webinars
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Not all central stations listed on The Alarm Exchange have opted to participate in our webinar series, "Why you should be using our central station" and I've been wondering why. Only answer I can come up with is, apparently, they don't think you should be using their central station. Go figure.
Our central station's webinars have begun. Register now.
Central stations will have the opportunity to tell you what services they offer, to what extent the services are unique or specialized and what you can expect to pay.
The webinars offer an excellent opportunity to interact with your central station, scope out another central station, and consider whether you want to move accounts or open new accounts with a particular central station. Am I encouraging central station hopping? No, but I am encouraging you to use central stations listed on The Alarm Exchange. Why, for you, not me. You get the added protection of knowing that the listed central stations are expected to deal with dealer issues and cooperate with a goal of resolving disputes. Those that fail to co-operate risk having their post removed from The Alarm Exchange. That may not sound like a big deal to you, but check out The Alarm Exchange central station category. Every major reputable central station is participating. If your central station isn’t, move to one that is. If you don’t, don’t bother complaining to me about problems you have with the central station; I have no relationship with that central station and won’t be able to make a call to resolve your issue.
So make some time to attend the webinars, by video or on your phone. They will all be recorded and you will be able to view or hear them by visiting the K&K website and navigating to the alarm webinars: https://www.kirschenbaumesq.com/page/alarm-webinars
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To order up to date Standard Form Alarm / Security / Fire and related Agreements, click here: www.alarmcontracts.com
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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.
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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
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
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