KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Donating alarm equipment and services and risking your business
August 10,  2024
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Donating alarm equipment and services and risking your business
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Ken,
            We are donating an alarm to monitor a “Safe Haven Baby Box”. The County does not want to sign a contract? Wondering what I should do?
 Thanks,
 JS
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Response
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            What should you do?  Put on your The Flash costume and run.  It's OK to gift the equipment; I don't see much exposure there.  But monitoring is out of the question without a contract. 
            When it comes to your exposure it won't matter if you are donating your services, charging discounted rates or excessive rates; the exposure is going to be the same.  The exposure for providing security services, including a baby box, is unimaginable.  The circumstances could include the most horrific scenario with damages reaching astronomical levels.  And it won't matter that you were donating your services.
            Keep in mind that your central station has required you to sign a Dealer Agreement in which you agree to indemnify the central station, even for its negligence and you have also agreed to use proper contracts for your services.  Proper contracts usually equate to Kirschenbaum Standard Form Agreements
            Additionally, you have likely agreed to insure your central station by adding it as an additional insured on your E&O policy.  By the way, unless you have the most out to lunch carrier [I think there may be one around] that doesn't require you use a proper contract, you only got the E&O coverage because you represented that you use a contract that the carrier approved of, which also will be a Kirschenbaum Standard Form Agreement [or a good copy, which will necessarily be out of date].
            No good deed goes unpunished.  That means no security or alarm work without a signed contract; signed before the work is done, not after.
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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