August 17, 2011
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Question
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Ken,
On your Central Office Monitoring Contract is the following:
"4. TERM OF AGREEMENT: RENEWAL INCREASE: The term of this agreement shall be for a period of three years and shall automatically renew month to month thereafter under the same terms and conditions, unless either party gives written notice to the other by certified mail, return receipt requested, of their intention not to renew the contract at least 30 days prior to the expiration of any term. SUPERIOR shall be permitted, from time to time, to increase the monitoring charge by an amount not to exceed nine percent each year and Subscriber agrees to pay such increase as invoiced."
Is "month to month" a requirement for California as opposed to additional annual or 3 year terms? If not a requirement, can I change it?
Thanks!
Marty Walker
Superior Alarms, Inc.
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Answer
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As long as you comply with CA's automatic renewal law you can have an automatic renewal for one or three, or more, years. You can start your research on my web site: http://www.kirschenbaumesq.com/autocalifornia1.htm
States that have enacted automatic renewal statutes generally permit month to month renewals without any compliance. California's law does not read that way.
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more on the water damage issue
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This response is for David Myers regarding my question to Jessica on the water damage. David I agree things do fail. But there is a record of completion and that signals were sent at the time of installation. This documentation should show that the equipment was installed according to manufacturer's instructions, record of signals sent to central station and there is a customer acceptance. If that is in place then yes, you have a part failure, not a negligence issue in my opinion.
Thanks,
Craig
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additional insureds
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Question
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Dear Ken,
I my (new) central station wants me to name them additionally insured and I want them to additionally insure us. What happens in the event of a claim? Do our insurance company's just fight it out since we insured each other.
Stuart Rosenberg ME, CET
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Answer
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Your central station will have on up on you, because its contract will also require you to indemnify the central station. The carriers may share the defense or fight over priority. Look into getting the same carrier; that would solve the issue.
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hiring subcontractor and license issue
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Question
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Ken,
Since anyone I hire to work for me directly has to be fingerprinted and registered with the state of NY, how does that affect me when I hire a subcontractor, like an electrician, to pull low voltage wiring on jobs for other than security purposes? Telephone, cable, AV etc. Only my registered employees touch any wiring related to the security portion of the install.
Stephen
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Answer
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In NY every employee who sells, installs or services alarm systems must be documented, which starts with being fingerprinted. As the qualifier for the license, and as a licensed alarm company in NY, it is your responsibility to ensure that every person who installs or services alarms in NY is properly documented. You can hire a licensed alarm company as a subcontractor, but ultimately you can be held responsible to make sure that all the subcontractor's employees who work on your subscriber accounts are properly documented.