Voip Concerns

Question:

 Ken,

As more and more of our clients are signing up for VOIP, our alarm 
manufacturers (Ademco and Napco) are telling us that they will not
guarantee their alarm systems working with cablevision/optimum voice as
the systems are not compatible. Should we include in our monitoring
contract that customers must have at least 1 regular phone line thru
SBS/SNET for the alarm system?

Your thoughts please.

Thanks.

Don


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Answer:

 You could include a provision in your contract stating your VOIP
concern and requiring POTS. Because of the risks involved in VOIP I
recommended several weeks ago that a Disclaimer Notice be used and signed
with every contract. That recommendation was:
Disclaimer Notice

Security companies have been asking for disclaimer language in the
contract for subscribers opting not to have radio back up, warning notice
for VOIP, and other disclaimers. I have resisted disclaimer language in
the contract because I thought there is no end to the additional equipment
or services that a subscriber could claim it was not offered. I recently
had a case where a home owner was burglarized. The telephone wires were
cut before the illegal entry and the central station did not get notice of
the break in. The home owner commenced an action against the alarm company
claiming that the homeowner had been defrauded because the alarm company
did not tell them about radio back up even though the homeowner claims to
have requested the best system available. A judge actually bought that
claim, finding that it was tantamount to fraud not to offer radio back up.
Of course the contract had the familiar language that the subscriber was
offered additional equipment. I am confident that the alarm company's
version of the facts is accurate and that radio was never discussed by the
salesman and the homeowner, and that the "facts" were manufactured after
the break in. In this case the additional equipment was a radio. However,
there are any number of other items of equipment that could have come into
play depending on the method of the break in and deficiency of the
security
system. For example, the break in could have been through an unprotected
window, roof, garage entrance. The claim could have been that motion
detectors were not offered. I am sure you can think of more examples than
I can.
Since the list of additional equipment and services is extensive,
inclusion in the contract is burdensome. Omitting an item could expose the
company to liability. Additionally, if the claim against the alarm company
is fraud in the inducement of the contract then the entire contract may be
rendered unenforceable or the disclaimer provision disregarded. The more
prudent approach seems to be a separate notice of disclaimer.
I have decided to put the disclaimer in a separate form which should
be signed by the subscriber with every contract.
The Disclaimer Notice form is to be signed when you get any other
contract signed. It covers most if not all additional security services
that may be available; those you offer and even those you may not offer.
You should use the Disclaimer Notice to your advantage. Think of it as
a selling tool rather than just another contract that you have to print
and have your subscriber sign.
You may find that requiring your subscriber to sign the Disclaimer
Notice will lead to the subscriber realizing that additional service is
available and advisable. Be careful in your presentation because you don't
want to be cornered into having to offer some of the additional equipment
or services without getting additional compensation. You should be ready
for that request by the subscriber.
The Disclaimer Notice may lead to additional compensation and I think
will be helpful in disputes with the subscriber when the scope of your
equipment or services is an issue.
I have prepared a standard form for the Disclaimer Notice and priced
it at $125.00. Order the form at http://www.alarmcontracts.com/.