Question:
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Ken
Our company occasionally gets called to perform work on alarm systems we neither installed or monitor. Replace a wired smoke detector, or, "the contractor replaced my door and now my alarm won't set; the magnet was on the door and the old door is history. Can you come and install a new magnet?"
The owner of the alarm company says it has plenty of insurance for every contingency, but I contend that working on a system for which we do not have a contract exposes the company. That we should not agree to do work like this unless the client will sign up with us.
My contention is that the common law understanding that governs casual repair work does not pertain to security issues. For example, you agree to repair the knob on the door. You repair it, the customer says "OK" and you have a reasonable expectation to get paid. The usual warranties apply for either adjusting the existing knob, or for a new knob supplied and installed. The technician determines that the old knob was serviceable and needed adjustment, or it was shot and a new one was required. The client tries the knob, the door opens, the tech feels reasonably sure he has taken the appropriate actions to ensure a completed job and that's it.
We have problems with techs who want to be heroes and revive worn out equipment and then problems occur afterwards when there is a call back and we attempt to charge the customer again. "why didn't you do it right the first time?" Good question.
I say Alarm systems are different When you touch the alarm system, the client says "OK it seems to be working" but the customer has no way of ascertaining that the alarm system is operating properly, but your issuing an invoice indirectly is stating that it is, because you are a security professional.
I know from personal experience that when a fire or burglary occurs in a premises, and the subscriber makes an insurance claim, typically the attorneys scour the subscriber's records for anyone who ever set foot in the premises and who could be remotely associated with the system malfunction which they claim to have contributed to the loss.
Many years ago I replaced a battery in a system and at some point in time later the place burned to the ground. (We thought it was deliberately set for insurance) The guy I ran the service call for told me to deny ever being in the place if someone were to contact me, or else I'd be shelling out big bucks to defend myself. (no one ever called me)
Many other experiences over the years where people have failed to arm their system, or a piece of hardware has fallen off a door and injured someone created potential lawsuits, but fortunately for me, I've never been sued. I have usually used one of your contracts so that may have shunted out litigants, or I just didn't have the deepest pockets among the lineup of suspects.
What say you?
Tim O
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Answer:
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If you perform any work on an alarm system you're in the loop if there is a loss. In the zone of liability; one of the defendant targets. Big enough loss and the subscriber [or its insurance carrier - or heirs] will be looking for every deep [and even shallow] pocket they can find. If the alarm failure is attributable to your service, or not determinable, you will be sued. Negligence, by the way, is not limited to the corporate alarm company, but just as in a car accident where the driver is sued, the alarm tech who performed the negligent work can be named as a defendant. If the alarm company's insurance is not sufficient to pay the loss, then guess who else gets tapped. Right, the alarm company and the tech who did the work.
Those of you asking - well what about the corporate shield. That's for personal liability for contract debt and acts of others in the corporation, not for the one who commits the negligence.
Do not work on any alarm system without a Service Contract. It comes with a "per call" option or "recurring revenue" option. Either way, the contract contains the essential provision that "contracts away your liability for your company's negligence".
If no Service Contract you can use a Service Slip. It's not as safe as the Service Contract because it's generally presented to the subscriber after the service is performed, and may not be signed, whereas the Service Contract is signed once and then you can do the service for the term of the contract and renewal terms. The Service Slip is not on our order form page. If you want the Service Slip please call Eileen at 516 747 6700 ext 312. Price $175.00.
By the way, I am not sure what you are referring to about the "common law" for "casual repairs". Stick to alarms, but don't work on any without contractual protection. Trust me, your boss will be one of the first to run for the hills if the loss is bigger than the insurance coverage, and it's impossible to have "enough" insurance in this business because the potential loss is unlimited.
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Another comment on residential fire issue:
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Ken
I have always been a little nervous about the alarm panel taking a hit through the communications side, which happens quite often, albeit much better with surge-suppression. We often find takeover panels that work except the dialer is fried. If the damage to the panel is significant enough, it may limit other functions like the ability to sound a general fire alarm, and it may be a week or more without anybody finding out until a timer test is missed.
One of the ways I’ve tried to improve this, is by using 110 volt (household power) detectors with one of the detectors having a relay, listed for connection to remote monitoring. The only one I’ve found is Gentex, and I’ve looked for years. The old ones were really big and lunky but they have stream-lined them a little better now.
I believe the simple nature of the electrical system, along with the larger size of mechanical grounding conductors, make it less susceptible to surge damage, compared to the complex group of electronic components in an alarm panel. The communications of the alarm may get wiped-out anyway, but in areas of heavy lightning, like Tampa Bay, I think the 110 volt smokes are more likely to wake me after a storm. These detectors come with 9 volt battery backup as well.
This is great for new-construction, or newer homes, built with 3-conductor dedicated circuits for the smoke detectors, but in the older homes where the wiring is two conductor, and only outside the bedrooms, you still have to go another route.
We buy the detectors and supply them to the electricians, then connect fire alarm wire to the closest detector (the one with the relay) to the alarm panel.
Voila! Everybody’s happy.
Ray Yauchler
Active Security Co.
St. Petersburg