***************
Question
**************
Ken
    I was just introduced to DSC’s C24 plan.  It provides additional RMR by allowing the customer to access their entire alarm system remotely.  Part of what they can access is video or stills that are securely stored on servers in Canada.  In addition to dollar signs, I immediately saw red flags.  If there were to be an incident – burglary or home invasion, for instance – that was captured by the installed cameras, I imagine that there would be an expectation of the successful storage and retrieval of the images.  I see many failure points, some under my control and some not.  I control the installation of the camera and its connection to the equipment connecting it to the Internet.  I don’t control the Internet or the Canadian Storage Servers.
    I’d rather decline to sell this equipment/service than open myself to what may be tremendous liability.
Thoughts?
Thank you.
Michael Mark, President
Designed Communications, Inc.
*****************
Answer
*****************
    I am curious that you would be concerned about the video feed and storage any more than you would about POTS, VoIP or cellular communication to the central station.  I suppose that the more security you offer the greater the subscriber's expectation for successful prevention.  That is not enough to discourage you from offering better and more sophisticated equipment and services.  There are numerous stages of events that occur when you consider your services.  These range from system design, installation, service, monitoring, response to monitoring, storage and retrieval of data, not only at the central station but in the panel itself.  
    Alarm systems can include video.  Video can be for alarm verification purposes, 24/7 monitoring or non monitored storage or video for essentially non security purposes that permits the subscriber to view cameras around the business or residence for whatever purpose they may have.  I don't think anyone believes that video security is a passing fade, or that remote access to their systems is something that subscribers will soon tire of.  
    All of the Standard Alarm Contracts stress the limitations of the security systems and service, and all of the contracts are designed to accomplish the most important function of the alarm contract, to contract away liability even for your own negligence.  You can't be responsible for a loss, whether it's caused by human error or technology and equipment beyond your control.  
    Your potential liability is no more for loss of data than it is for any other stage of events that breaks down and, at least in the mind of the subscriber, or its insurance carrier, caused or contributed to the loss that the alarm system was supposed to detect.  
    Embrace new technology and sell RMR.  And use proper contracts to protect yourself.

*****************************************************************************