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Subscriber understanding indemnity provision
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An alarm company told its subscriber to contact me to explain the indemnity provision in the alarm contract. The residential subscriber understood it but wants to know how a subscriber can protect against a catastropic loss that would require it to indemnity the alarm company. Interesting twist on the indemnity issue since most subscribers who object to the provision rarely try to justify their position. The alarm company of course has the same take on the issue - how does it guard against catastropic loss and why should it subject itself to such risk for the relatively nominal charges for its services.
The same alarm contract that requires the subscriber to indemnify the alarm company also requires the subsdriber to procure insurance naming the alarm company as an additional insured. A reasonable request would be to limit the indemnity exposure to the available insurance coverage. A further explanation may actually raise more issues than it resolves. You could explain to the subscriber that most claims against alarm companies come from the subscribers insurance company. The contract has a waiver of subrogation provision that should prevent that. The insurance procure clause that requires the alarm company be named as an additional insured also serves to prevent the subscribers insurance company from suing the alarm company because an insurance company can't sue its insured for the insurable losses. Thus the real exposure is when the claim comes from a third party, one not bound by the alarm contract. We try and cover that with a provision that there are no third party beneficiaries of the alarm contract, but courts have found ways to circumvent that provision by creating "extra contract" duties that extend to third parties. The indemnity provision would come in handy under that scenario and the subscriber should be relieved to know that its insurer will provide the coverage provided the subscriber has the insurance and complies with the alarm contract requirement of naming the alarm company as an additional insured.
By the way, sending subscribers to this forum may not be the best practice. This forum is clearly for alarm companies and those in the industry.
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info on 2G requested
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Ken,
Can you please post this letter, so that we (dealers) can get some feed back about 2G going away in 2016.
I would like to know how many dealer lost accounts when the analog radio's had to be replaced by the digital radio's. Now that the 2G (digital radio's) will no long be around by the year 2016, how many more accounts will be lost because of this. I use uplink radio's and I know they have many programs to replace there 2G units to 4G units or a life time warranty on there units. If the dealer doesn't take advantage of these programs then a new unit must be paid for by the customer.
My question is even if the dealer gets a 4G unit we still have to charge a service call, so how can we put into a letter a nice way that there will be a charge for replacing there unit and hope that we don't lose the account, because many of these account had analog radio's many years ago how do I answer the customer when they say when will this stop (replacing units).
I know for a fact I am going to lose some account because of this change.
Thank You
Steven Pagliaro
Safe World Alarm Co.
Staten Island, N.Y
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Comment on DIY from March 8, 2014
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Ken
These replies over diy alarms have me thinking that the old guard may soon be in for a surprise. While long contracts will certainly slow the bleeding in our industry, I hold that to make headway in any industry you have to be disruptive and provide what the customers are REALLY looking for in a way so drasticaly different that it turns the industry upside down.
Lets look at taxi services... uber is disrupting the market by adressing the root of what customers despise. Waiting for a stinky, ancient Caprice Classic to show up late, scoff when you want to pay by credit card and shove a blank paper in your face when you ask for a receipt sucks. Its a terrible user experience, even if they DO show up on time 20% of the time. Uber adresses the problems by turning the industry on its head and defying convention, and the old guard is so scared they're suing en masse to delay the inevitable. Too bad it stinks of protectionism as much as most taxis stink of B.O.
Next... lets look at Tesla. Theyre innovating everything from the car to the buying experience. Their customers fanatically LOVE them, and competing dealers despise them. Seriously, when is the last time you actually walked into a car dealer and thought 'geez, im so glad theyre here to protect me from that evil manufacturer'... hmm the diy alarm scenario seems like a parallell. Especially when we all know the majority of security dealers employ underqualified less than friendly "techs" and hyperaggressive sales people with their own interests in mind and not a care for the actual protection of their customers life and property, letalone the skill to properly design an effective security system. Its a major problem for us all, and its one of the reasons our collective customers do not love our industry. Of course, your company is different. Aren't we all?
As for Tesla, the customers they have seem to love them and the old guard is screaming bloody murder and trying to hide their protectionism in their lobbying for "consumer protections". Gotta love doublespeak. Same goes for this DIY hullaballoo.
This has happened before...
So heres an idea... spend more time crafting a unique offering for your company, disrupting the status quo, satisfying your clients, defying convention and solving problems and the diy "crisis" wont matter to you. Innovate. One thing is certain, stand still and protect 'what was' for long enough and the world will pass you by every time, and likely so will Simplisafe.
Lets face it, the bar is set pretty low in our industry. Show up on time, do what you say and finish on time and budget and youre pretty far ahead of the majority of the competition. While thats far from innovation, its a hell of a start instead of complaining about others successes because theyre doing it differently than you are. If we're going to complain, I suggest we complain about the part of our industry screwing our customers 6 ways from Sunday. We see it every time we show up to fix a camera system installed by someone who really shouldnt have.
Chances are you charge 3x more than the DIY option for an alarm. When is the last time you thought about whether or not you provide 3x as much VALUE.. 3x less hassle... 3x more expertise... are your customers 3x more satisfied? We think about it every day and constantly strive to provide more value. Is DIY REALLY that different than the majority of 3 zone lick and stick lynx systems installed by trained and licensed monkeys accross the whole country? Are your installs that much different? Do YOU have the testicular fortitude to turn our industry on its head? The only way is to truly serve the customer by disrupting the status quo.
For the record, im not a fan of the diy alarms, but my guys also havent sold lick and stick cookie cutter alarm systems for a few years.
Armando Perez, G.M.
Hoosier Security
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking Engagements
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Sonitrol Verified Electronic Security. Annual convention March 22, 2014 at The Worthington Renaissance Fort Worth Hotel in Fort Worth, Texas.
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SentryNet's 19th Annual Dealer Conference. April 22 - 24, 2014 at Harrah's in Tunica, MS. register at http://www.sentrycon.us or call Peggy at 800-932-3304 for more information. www.sentrynet.com
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Northeast Security & Systems Contractors Expo Thursday, May 22, 2014 10 am to 5 PM at Royal Plaza Trade Center, Marlborough, MA. registration https://www.expotracshows.com/neacc/2014/ Presentation on Alarm Law issues and Q&A will be at 2 PM. For more info contact Gary Spaulding, NEACC President
207-384-2420 gary@spauldingsecurity.com
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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Electronic Security Summit for 2014. October 22-24, 2014 at the landmark Broadmoor Hotel. Colorado Springs, CO. For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC., (786) 999-9738 alex.quirin@aspsummits.com www.aspsummits.com