Question:
Ken,
I have a customer who wishes to have full ownership of the alarm panel INCLUDING CPU.
By that he means that he wants to be responsible for future programming changes, additions etc. He does not want our company to have any knowledge of the installer/ user codes he programs.
Once we install it, we will be out of the picture, except 3rd party monitoring.
How can I protect myself from liability using your monitoring agreement if the system does not function due to an error the homeowner caused??
Thank you,
Jan
************************
Answer:
My standard form monitoring contract provides that the alarm company retains ownership of the communication software and codes. When the subscriber completes performance of the monitoring contract the alarm will give the code or default the panel to manufacturer's code.
If you are willing to give the subscriber the code all you need do is make that clear in your contract as part of the installation description, or on a separate rider if necessary.
You will provide that the alarm company is providing the code to the panel, that the parties agree that the subscriber will change the code, that the alarm company will not have the code and the alarm company will have no responsibility for programming or servicing the panel regarding code problems.
I think the issue raises another concern, run away signals.
Typically you would have the code and could reprogram or delete programming. You could terminate signals to your central station.
In the situation described above the alarm company will not be able to program the system. If the central station is going to continue to receive signals then there needs to be a way to either ignore the signal or terminate the signal once the subscriber is no longer to be monitored. By giving up the code and control over the panel the alarm company loses this control over the system. I see this as more of a problem then potential liability caused by giving up the code.
***********************************************************************
Comments:
Hi Jan,
I have to say that the best way to protect yourself from a client like this is to drop him like a hot potato. He's saying that he does not trust you to return the code to him when his contract is up, or, as a matter of fact with "anything". Likewise, I would ask you, how can you trust him to not make changes to the programming that would cause the system to not properly communicate?
I'd rather not have a client like this. Is it worth your company, livelyhood and possible retirement for $20.00 a month? There are a lot more customers out there who won't give you a hassle.
This guy obviously wants the best of both worlds; You watch, he's the first one to call you when he runs into a programming problem that he cannot figure out.
He will expect you to answer questions over the telephone, so he does not have to pay you for a service call.
And afterward, you are sitting there wondering if he really understands what he's doing and if it's going to communicate or not.
Why cater to one out of thousands, for a few bucks a month? Your time, effort and concern is better spent on clients that fall into your method of doing business, for which you can give them exemplary service in return. That is, a mutually beneficial relationship.
Think of it this way. As with most dealers in the alarm trade, likely your business mainly comes from referrals. This guy is only going to give you referrals to people that he coaches about not giving you the codes.
You may just find that he calls you back, once he finds out that no other dealer is going to monitor or service him either. But whatever, at that point, I'd still rather not have this sort of client. If he's got no choice but to do it your way he'll be a PIA, you can count on it.
Fageddaboudit! Drop him.
Gene
Reliable Alarm.
*************************************
These customers do exist. Luckily there is just a handfull of them.
I walk away from these types.
The runaway signal and system disconnect issue is an excellent example.
Another problem may come up when the user programs in addional users - guest, babysitter, etc. The central station won't have any passcodes to verify if this is authorized user or a burglar.
Dumping one account is a small price to pay compared to losing sleep when things do go wrong.
Ask the customer if the phone company, cable TV, or internet service provider also give him full access and programming of his account.
Dusan
*************************************
Your purchaser probably is concerned with being held hostage over a dealer code if he ever wishes to change providers. Suggestion Upon cancellation/completion of agreement, company agrees, at buyers request-expense, to default panel settings to manufacturers settings.
Hand him a programming book and a dumb panel and bid him goodbye.
But Never give up your code as long as you have telephone and account
numbers programmed into the panel. Let them be some other guys problem.
Carl
************************************
Ken:
Problem I see is:
Customer re-programs panel, burglary/fire/rape etc occurs, someone DIES (worst case) and THEN to cover his tracks, customer re-re-programs to be sure he is not sued.(yes, it's a stretch, but in this business, one HAS to believe they/them are out to get US).
Joe Pfefer
Jade Alarm Co.
Comments:
I agree with everyone here; especially Gene; drop him. We would never give out the install manuals, let alone the software to program a system. One little box un-checked and any alarm may not sound or report. There is nothing but trouble in the future for this and your entire company can suffer because of what may happen. I say no thanks to these kind of jobs.
Barry
CWR
*****************************
I have to agree with everything said so far. Except, one very important part missing. How much liability is there when this customer tinkers in programming and causes that panels signals to hit another customers account! Believe it or not, I have actually seen a situation in the central station of a dealer that miss- programmed, sent a signal, hit another account causing a hold-up dispatch. Unfortunately everything went very bad, as the owner of the liquor store wound up being shot and killed by the police! This is a true story. I just would not want to be that other dealer; This is one of those worst case scenarios, but it does happen.
-Charlie
*********************
Ken,
we recently acquired a customer who started out with another local company, then they sold out to a another company 100 miles away, they then sold out to a national company who does not service our area. They called upon us to service their account then inquired on a maintenance contract if they switch because their contract was up. So when they informed of changing companies the other company won't give CSID code or call the panel up to release it, we even had tech/support try getting access they advise lock- out code was in place when we went back to the other company they said they could not release it or call it up then just laugh about it. Now the customer has to pay for the cost of replacing the panel for about$475.00 is their any laws in ILL about this of action!! Why should they have to pay for another panel when there are no monies owed to the previous provider?