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automatic renewal and contract enforcement / don't miss out on the Concierge Program
January 15, 2019

automatic renewal and contract enforcement
    Virginia is the latest State to enact an automatic renewal law. It stands out alone among the other state laws because it does not exempt month to month renewal. It necessitated vision to the alarm contracts in Virginia, and the Standard Form Agreements have been updated to comply with the law. You can read the law here:
    The Virginia law became effective January 1, 2019, and you must be sure your contracts comply with the new law. Why?
    The alarm industry depends on properly worded contracts that are enforced by the courts. Claims against alarm companies for losses are common. Constant chipping away at the protective provisions in the courts and legislation prohibiting some of the provisions relied upon have caused increased interest in pursuing claims against alarm companies. Dealers need to be particularly careful because, know it or not, dealers agree to indemnify their monitoring centers and third party vendors who facilitate monitoring. Insurance companies offering errors and omissions coverage are mindful of the exposure and also rely on the alarm contract provisions. 
    Without an automatic renewal provision the alarm contract would terminate. Upon termination of the contract the alarm company will either terminate service or continue service, arguably without the benefit the alarm contract provides.
    Every alarm company owner understands the importance of proper alarm contracts. That may be an exaggeration because there may very well be a few alarm company owners who don't believe alarm contracts are necessary. They probably also don't think they need a drivers license to drive, a marriage license to get married, maybe even an alarm license to conduct their alarm business. If they are lucky they never have a claim, never have a problem with their subscribers, found a central station to monitor their accounts and an insurance company willing to insure them. Saved some money by not buying contracts, getting them printed and storing them.
    Well, of course their day of reckoning is coming. When? When they go to sell their business or accounts. Finding a buyer as dumb as they are is going to be near impossible. A potential buyer is either not going to be interested at all, or is going to low ball the offer. Alternatively the buyer will require that all subscribers be signed up on the buyer's alarm contract. A seller getting ready to exit the alarm business finds himself starting all over getting every subscriber to sign a contract, and, by the way, the offer is still going to be low, much lower than the seller would get had proper contracts been used.
    That's just the way it is, and it's not going to change in our lifetime.
    This week we announce our CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM. I hope you decide to join. I promise we will make it worthwhile.  We want you to think of K&K as your attorneys and we hope to meet your every expectation.  Participation is limited so don't delay.  Now you can afford to have K&K on retainer and available when you need us.
You can check out the program and sign up here:

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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
516 747 6700