KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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more on failing to communicate test signals
March 31, 2026
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more on failing to communicate test signals from article on March 21, 2026
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Ken,
Live acceptance testing by AHJ's is just the reality today, and with today's automation the probability of missing a signal is almost impossible by an operator.
However, there are so many different acters in the transmission of a signal the dealer must consider themselves like a conductor of an orchestra. The customer always wants their CO issued yesterday because job overruns either on time or budget, but the dealer needs to prepare and test days before the AHJ final inspection. The dealer and central station are partners not causal acquaintances in this dance.
Possible issues start with the control panel, the communicator, the phone line provider, the cellular carrier, the long-range radio, then all the different entities that touch the transmission before it even reaches the central station. Then the receivers, the automation, and then the operator. You can even throw Microsoft into the chain plus a dozen others like Cisco. Prior testing, and not just one signal, is essential.
In defense of my industry, the only reasoning that is acceptable is unusual traffic (high activity) conditions at the moment to retransmit the signal. There is practically no defense to "missing" a signal all together and not retransmitting the signal even if its late (outside the NFPA Standards) so rarely that it almost doesn't exist.
There are many "reputable" central stations who adhere to the Standard and have redundant offices. But then there are those others and there are many who don't make the investments in doing it right. I would like to say that USA was the original company who brought the issue of redundancy to UL in the 1990's and that all central station were not created equally.
My advice to Jason who said this is a repeating occurrence, do a real review of your internal systems, be the conductor of the orchestra and bring in your central station provider. If you don't get the answers you want or trust look around at other service providers and call me.
I will add that there are idiots in my industry who make up stories about their competition, just like alarm salespersons. If you hear anything that sounds like BS from a central station salesperson, it probably is BS. There are companies that say crap about USA because they have no confidence in selling their strengths. It is a shame.
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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Great points. Advancing technology, communication advances and stiff competition among central stations and perhaps other ways subscribers can monitor their security systems, AI assist, all contribute to monitoring efficiency and reliability at central stations. But "missing a signal is almost impossible by an operator" may be overly optimistic, especially when expressed by a central station owner. The reality is that there is always a statistical probability that an error will be made by the central station. Mistakes can be the result of equipment problem, software error or human error. Also, "mistake" is somewhat subjective, and believe me, the subscriber's [or its insurance carrier claiming subrogation after a loss] criteria can be much different than a central station's procedural policy and execution of that policy on a particular signal response. In other words, a delayed response, also subjective, can be the source of disagreement. Keep in mind that the subscriber making a claim of late or no response is making that claim after a loss or when the subscriber is looking to pick a fight with the dealer, but most of the time, after a loss. With the perspective of a loss, and looking for someone to blame, the alarm company can be an easy target. As alarm E&O carriers move to early settlement of claims the lawyers and subscribers are more inclined to take a chance and sue the alarm company. That target is almost always the dealer, even when it's the central station that is clearly the broken link on the response to a signal. And, as I've continuously mentioned, the dealer is typically indemnifying the central station even when its the central station that made the mistake [unless the dealer has been smart enough to demand the K&K Rider to Central Station Dealer Agreement], and use as central station [fair enough to agree to the Rider terms], it's the dealer's E&O carrier that eats the loss up to the policy, and then, possibly, the dealer forced to go out of business because of the huge claim far exceeding the E&O policy. Most reputable central stations [and you can see them in bold on The Alarm Exchange in the central station category, will accept the more reasonable terms in the Rider].
The reason E&O coverage is so important is that there remains the possibility of being sued for a loss. You and the central station may have done nothing wrong, and ultimately you will likely prevail on the facts and because of your K&K Standard Form Agreement, you can't do much about getting sued and incurring considerable expense defending yourself. Your insurance deductible will certainly be exhausted in just about any claim that needs attention or defending.
Bottom line, use K&K Standard Form Agreements, be sure to carry E&O insurance [I'm still recommending ESA owned Security America] and be sure to use a reputable central station [those recommended on The Alarm Exchange].
Differences between dealer and central station are not limited to missed signals. In fact, that is rarely the cause of disputes. I hear complaints from many dealers complaining about their central station. Most often it's the dealer wanting to move to another central station and the central station refusing to cooperate and threatening to hold the accounts hostage and sue the dealer. That would be the most popular issue I get calls on. Unfortunately, it's often the same central stations I hear about. True, the complaining dealer is just one of hundreds or thousands of dealers that the central station has, and you can't please everyone, and dealer's reason for leaving can have nothing to do with central station performance, so it's not easy to decide who is right or wrong in the dispute. There are many factors to be considered. I don't want to give the impression that I am inundated with dealers complaining about their central station. It's a handful a year, though too often the same central station involved [don't bother asking who - that's not the focus of this article].
As far as one central station telling you information about another central station I agree with Bart that you do have to consider the source and the reason for conveying the information. While some of the "facts" may be accurate, the reason for bringing it up is obviously suspect. You might get a better assessment from other dealers with actual experience, good or bad, though dealers too can be on the wrong side of the issue. Ultimately you can rely on general reputation but your own experience is probably the best measure.
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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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