KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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why is alarm company not liable for its negligence or breach of contract
May 11, 2017
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NEXT WEBINAR May 23, 2017: Register Now.  

Title: All You Need to know about getting NICET certified
Presented by: Bryan McLane, National Training Center
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why is alarm company not liable for its negligence or breach of contract
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Ken:
    How can I explain to subscriber why ARISTA is not liable for 'ARISTA'S negligence or failure to perform any obligation" see highlighted quote from the residential contract.
    For example they are also concerned if central station gets signal and does not call the call up list. 
Can their insurance company then sue us for our negligence? or centrals failure to call the call up list?
        "14.  DELAY IN DELIVERY / INSTALLATION / RISK OF LOSS OF MATERIAL:  ARISTA shall not be liable for any damage or loss sustained by Subscriber as a result of delay in delivery and/or installation of equipment, equipment failure, or for interruption of service due to electric failure, strikes, walk-outs, war, acts of God, or other causes, including ARISTA's negligence or failure to perform any obligation.  The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence. In the event the work is delayed through no fault of ARISTA, ARISTA shall have such additional time for performance as may be reasonably necessary under the circumstances.   Subscriber agrees to pay ARISTA the sum of $1,000 per day for each business day the work is re-scheduled or delayed by Subscriber or others engaged by Subscriber through no fault of ARISTA on less than 24 hour notice to ARISTA.  If installation is delayed for more than one year from date hereof by Subscriber or other contractors engaged by Subscriber and through no fault of ARISTA, Subscriber agrees to pay an additional 5% of the contract Purchase Price upon installation.  Subscriber assumes all risk of loss of material once delivered to the job site." Kirschenbaum Contracts TM (c) 
Tziporah Lent
Arista Security Control, Inc.
Brooklyn, NY
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Response
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    You can try explaining it with a shrug of your shoulders or talking/mumbling very fast.  If that doesn't work you can try this.
    Alarm companies cannot be responsble for losses sustained by subscribers because

  • alarm systems and alarm services are not infallible
  • alarm companies are not insurers, and don't charge for services like insurers
  • alarm companies can provide services to the public at reasonable prices because courts in every state recognize that alarm companies are able to exempt themselves from liability, limit their liability and shift the risk of loss to the subscriber, even for the alarm company's own negligence and breach of contract if there is a failure of alarm equipment or alarm services and the subscriber suffers a loss that the alarm was designed to detect.
  • alarm companies are willing to provide more security and assume greater liability if the subscriber is willing to add and pay for additional equipment and services, or pay an increase in the contract charges.
  • subscriber should and ordinarily do carry sufficent insurance to protect them if there is a loss

    I note that you have referred to one paragraph.  The Standard Form Agreements have many "protective" provisions that make it crystal clear that the alarm company will have no liability for a subscriber loss.   Be mindful that a subscriber expressing that he or she "doesn't understand" is really saying "I don't like this".  It may be cost effective to move on if the subscriber is resistant to signing your agreement without making many changes that will certainly increase your risk.  When the subscriber justifies explanation and you can't seem to convince them it may be time to bring me on board to see if I have better success.
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WEBINARS:  Sign up for any or all of the webinars that interest you.
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Title: All You Need to know about getting NICET certified
When: May 23,  2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered:  Why you should get NICET certified and how to do it
Who should attend: Alarm company owners with technical skills, technicians
Presented by:  Bryan McLane, National Training Center, 4148 Mantle Ave., N Las Vegas, NV 89084. Direct phone 828-649-1337  Bryan@NationalTrainingCenter.net
Register here: https://attendee.gotowebinar.com/register/1545079201485816579
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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
516 747 6700
www.KirschenbaumEsq.com
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