KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Contracting take-over account / Limitation of liability challenge / Why you should use our central station - webinars continue today
July 17, 2020
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Today's webinar: starts at noon ET. Register now:
Statewide Central Station - July 17, 2020
https://attendee.gotowebinar.com/register/2654849298360793872
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Contracting take-over account
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Ken,
If I buy another dealer's accounts that already have your corresponding contracts, will the existing contracts suffice or do I need to have the customers sign new contracts through my business? I use your contracts as well as the other dealer.
Thank you,
Jon
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Response
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You’ve purchased the contract and the account. Hopefully you evaluated the contracts you were purchasing to determine if they were sufficient [legally enforceable]. In this case they are Standard Form Agreements, which means they will provide the best contractual protection available at the time the contracts were prepared. You don’t indicate how old the contracts are, not when it was signed by this particular subscriber, but when the form was designed and drafted. That’s important because up to date contracts have the best protection, the most contractual features for today’s technology, and provide the most value for your business.
If you buy alarm contracts and they are assigned to you, you will step into the shoes of the selling alarm company. Obviously it would be better to get the subscriber to sign a new updated contract with a new term, but it’s not always necessary.
You should also be mindful that form contracts are often modified; you need to be careful with those modifications because the risk level of the selling alarm company may not be within your comfort level, or the comfort level of your insurance company or central station if you are moving the account to the central station you use.
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Limitation of liability challenge
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Ken,
My potential subscriber has issues with section 22, the Limitation of Liability, which is in the amount of $250. Is there another calculation you would recommend for a liability amount on a monitoring contract? Any other wording we could use in lieu of an amount?
Best,
Chris
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Response
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There are a few changes you can make that are reasonable and usually accepted by subscribers who are challenging the $250 limit, which is the customary limit in alarm contracts. You can agree that the limit doesn’t apply if you are found liable for gross negligence or willful misconduct. You can offer this because the limitation clause probably won’t be enforced if you have risen to this level of conduct. The next change is that you can accept liability for damage done by the negligence of your employees while on the premises. For monitoring services this is likely never to apply. But installation, service or inspection will require that your employees be at the premises and there is really no good argument that you should not be liable as any other contractor entering upon the premises would be. This of course should not include liability for alarm equipment failure.
When you increase the limitation of liability it’s probably not your money you’re risking, except for your E&O policy deductible and any damages above your coverage limits. You are also increasing your central station’s liability limits, because your central station, in most cases, relies on your contract with the subscriber. There will be severe repercussions if your contract changes actually causes damage to you insurer or central station.
When you make any change to the Standard Form Agreements you reduce your contractual protection. No change is going to increase that protection. You should really engage counsel to consider the subscriber challenges and agree to or negotiate the requested changes. This is precisely one of the most valuable services available in the K&K Concierge Program. In fact you get a free half hour of contract review each month; a $250 value [just a coincidence that it’s the same $250 as the limitation of liability clause]. I know you want every job you can get, mostly, but upon reflection you are not willing to risk your entire business, maybe more, for one job. And, if you are, better know just how far you’ve stuck your neck out. You wouldn’t be comfortable [or smart] installing equipment you didn’t know how to install. You shouldn’t be making changes to contracts unless it’s the business side of the contracts, like the RMR charges, term of contract and other strictly business issues. Check out the Concierge Program and call our Program Coordinator Stacy Spector,Esq at 516 747 6700 x 304 or email her at SSpector@KirschenbaumEsq.com.
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Central station webinars
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I am writing this in advance of the central station webinars start date, so today is the third presentation. Hopefully they are going well and we have great attendance over the next few days and weeks.
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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Statewide Central Station - July 17, 2020
https://attendee.gotowebinar.com/register/2654849298360793872
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Affiliated Monitoring - July 20, 2020
https://attendee.gotowebinar.com/register/6582371903028819982
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Dynamark Security Centers - July 21, 2020
https://attendee.gotowebinar.com/register/2732409948268814863
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Stanley Security Wholesale Monitoring July 22, 2020
https://attendee.gotowebinar.com/register/1266411303572956432
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Allstate Security Industries Inc – July 23, 2020
https://attendee.gotowebinar.com/register/7997485149440152333
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General Monitoring Services - July 28, 2020
https://attendee.gotowebinar.com/register/6847800607085109776
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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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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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NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles
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THE ALARM EXCHANGE
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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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