You can read all of our articles on our website Having trouble getting our emails?   Change your spam controls and white list 

Do you need to find out if subscriber is contracted with another alarm company
October 24, 2019
Do you need to find out if subscriber is contracted with another alarm company
            One of our customers (still in contract), signed a contract with another company. Now they want to cancel with us.   What, if any obligation does an alarm company have to verify a potential customer is not currently in contract with another company?
            The quick and general answer is that you do not have to ascertain if your potential subscriber is contracted with another alarm company before selling them alarm services.  This of course assumes several other factors that if not in place could change the answer.
            I suppose there are two ways you begin a sales pitch with a potential subscriber.  Either you have initiated the contact or the subscriber has initiated the contact.  
            The only way you can initiate the contact is by door knocking or cold calling.  General advertising which induces a potential subscriber to contact you would fall under the category of the subscriber initiating the contact.
            If the subscriber reaches out to you, even in response to an advertisement, I don’t think you are under any legal obligation to ascertain if the subscriber is already under contract with another alarm company.  Maybe that existing contract is coming to an end; maybe the subscriber intends to terminate that service; maybe the subscriber wants both services.  Of course this fact scenario changes if you perform a survey of the premises and decide to use existing equipment.  You would have to make sure the subscriber owns the equipment or material you intend to use with your system; if you don’t you might be converting equipment owned by another alarm company.  Even if that equipment is not owned by another alarm company that company could take the position that you induced the subscriber to breach the existing contract and you should have known that the alarm service was being performed by another.
            But if you don’t use any of the existing equipment you are under no duty to determine if there is an outstanding contract.  
            If you initiate the contact then there can be different scenarios where you can get yourself in trouble.  If you use deceptive practices to induce a subscriber to contract with you can end up with liability.  If you are going door to door looking for yard signs or decals, or you have a competitor’s customer list, or if you represent that you are from the existing company or say anything to suggest that the existing company cannot continue to perform the alarm services, then you are crossing the line. The line would be the tortious interference with existing contract.  That can lead to claims by the customer who now finds himself with two contracts, two RMR payments.  It can lead to deceptive business practices attracting the attention of the licensing agency or consumer affairs office.  

To order up to date Standard Form Alarm /  Security / Fire and related forms, click here:
You can check out the program and sign up here: or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.

NOTICE:  You can always read our Articles on our website at
THE ALARM EXCHANGEalarm classifieds alarm security contracts

    This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. 
    There is no charge to post a listing here.Include your contact information, phone, email and web site.  If you would like to submit a post, please send an email to  To create a reciprocal link to our website, click here.

Getting on our Email List / Email 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.  You can read articles and order alarm contracts on our web site
Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301