KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Check your central station relationship April 26, 2025 ************************** Check your central station relationship ************************** Your relationship with your central station is one of the more important business relationships you have; at least it should be. The central station, not only responsible for monitoring your accounts, a recurring essential service that you offer your subscribers, but also serving as a sounding board for best practices, license compliance, insurance issues and contract issues. The best central stations all offer services beyond just monitoring your accounts. Whether you've been with your central station for a long time, it's a new relaionship or it's still a prospective relationship, there are a few essential issues you need to consider. First, the services offered by the central station. Will those services meet all of your current and planned services. With interactive video becoming more available and popular you may want to ask about that. Is your central station a stickler for license, insurance and contract compliance? While you may think these issues are unnecessary and compliance a nusance, you should appreciate a central station that insists on compliance with these issues. Sure, the central station is protecting itself, but it's also protecting you. If a subscriber suffers a loss you can rest assured that your central station is going to pull the Dealer Agreement out of the drawer and look to enforce the indemnity clause, requiring you to provide defense and indemnify the claim for the central station. If you have followed best practices by having E&O coverage with a reputable carrier [Security America], if you have a Kirschenbaum Contract TM, signed by the subscriber, and if you've adhered to even the most minimal installation and service standards, you will be fine; fine in the sense that you will not be losing your shirt and business over the incident. Is your central station allowing you to segregate your accounts on lines dedicated to just you? That will be important if you want to move central stations or if selling your accounts to a buyer who will want to move the accounts, immediately or eventually. Expect to take a hit on the multiple if you have your accounts intermingled with other alarm companies' accounts. Have you agreed to a long term commitment with your central station? That might be appropriate if the central station has provided sufficient incentive for that commitment, but if not, you should be able to move out freely. You will need the cooperation from the central station and you would be well advised to be at a central station who has a reputation of cooperation, rather than a reputation for being uncooperative. Not sure about central station reputations? Well I hear from plenty of alarm dealers all week long with the good, bad and ugly stories. For the most part you can rely on The Alarm Exchange listings. Central stations I find to be unreasonably uncooperative have been and will be removed from the listings. I've stressed the importance of the Rider to Central Station Dealer Agreement. If nothing else in that Rider is accepted you must limit your indemnity obligation to your insurance E&O policy, and name the central station as Additional Insured for claims by your accounts. Allowing yourself to be exposed beyond your insurance coverage is unacceptable and you cannot permit it. If you have that exposure now you need to get it changed by amending your agreement or you need to leave and find a central station that is reasonable on this issue. *********************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** 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 www.KirschenbaumEsq.com
