March 15, 2012
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Question on Activation Fee
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Ken,
Many cell phone contacts and services have a non refundable account activation charge. Are we missing the profit boat by not including this fee in our contacts? We can always waive the activation charge as an incentive to sign up new subscribers if there is an objection. It can be as simple as an added item in the contract ….. $_______ Account activation fee. I do understand that there is already a line for communicator installation but this is a different type of charge.
Michael Zemering, President
FM Systems, Inc.
Plainview, New York
President of New York Metropolitan Burglar and Fire Alarm Association
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Answer
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This sounds like a very good idea. I'd like some additional feedback before I make the change in the Standard Monitoring Contract and the All in One and other contracts that include monitoring [which would include most of the contracts]. Would a charge of $39 be appropriate? This charge can be added to the Installation line or a separate line. Any comment?
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another satisfied customer - thanks - I appreciate hearing from you
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Hello Ken,
Once again, thanks for the open forum and all the free information. I have been using your contracts for years now. We did have the misfortune of a claim and we are greatful we had the contract in place. A patron was injured in a store we were working in. Although it was a head injury, we were lucky it was not a serious injury and the person seemed honest in their claim. The insurance company provided our defense lawyer. Upon reviewing our contract, the lawyer claimed the indemnity clause wasn't "good enough" for Florida. She proceeded to tell us how much better she could do,for a fee of course.
P.S. the contract worked great.
The customer, who was initially sueing us to protect them, backed down. We were protected from what could have been a major claim. Our insurance company decided to settle anyway. It was a small claim. I am confident your contract saved us.
I just ordered your cctv contracts as well. Thanks again!
Rob G.
Florida
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Insurance procurement clause - Question
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Ken
We have a UL fire alarm monitoring subscriber questioning paragraph 11, I nsurance Procurement Clause, in your Standard Monitoring Contract, to date, we have not asked any of our subscribers to add our company to their public liability, property damage insurance. Is this an industry standard? Would this be a deal breaker if the subscriber is adamant about lining out this clause in the contract?
Thank you,
Kelly
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Answer
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The Insurance Procurement clause is one of the protective provisions in the Standard Form Contracts. Of course it's there for a reason and omitting it deminishes the effectiveness of the contract. Having said that however, the clause does raise objection from potential subscribers and it is one of the provisions that I routinely advise alarm companies that they can omit. So, don't lose the deal over that provision.
You are not using the proper contract for your monitoring if you are using the Monitoring Contract to monitor commercial fire. You should have an use the Fire All in One, which covers installation, inspection, service and monitoring. It really is the premier contract for commercial fire. And yes, it too has the Insurance Procurement clause. And, might soon have an Activation Fee.