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Special Notice: If you're at ISC East today look for Dennis Stern,Esq. From 1 to 2 PM Dennis is on a panel presentation discussing risk in the alarm business and how to limit that risk. He, along with Dan Budinoff, will be in Booth 282. Dennis is an attorneys at Kirschenbaum & Kirschenbaum and one of the more highly respected lawyers in the alarm industry.
Ask the panel about our Standard Alarm Contracts and how they reduce your risk of liability.
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Question licensing question CA
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Ken,
We are in CA and are growing throughout the entire state. Our telemarketing team is generating sales and we are hiring independent contractors to do the installs paying them per install. What kind of licensing/insurance we need to make sure these contractors have? Plus, what agreement do we need to have with these contractors to ensure we are not liable for any damage they have done?
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Answer
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California, like most states, requires licensing for the alarm company and a permit for an employee. You need to be licensed as an alarm company operator. Your employees [some or all, depending on their job description] will have to be permitted. I doubt that you can circumvent the process by engaging subcontractors.
Telemarketers pose an interesting issue. Some licensed jurisdictions are going to require them to be licensed or permitted, as the case may be, as any other employee, but that may depend on the extent of the telemarketing services. If telemarketing is limited to finding a prospective interested subscriber and then handing that sub off to a salesperson, the telemarketer probably doesn't have to be licensed. If the telemarketer not only finds the prospective sub but enters into a sales pitch can signs them up or coaches them through an on line sign up, that sounds more like sales than telemarketing and a license may be required.
Each state may approach the issue differently depending on what services [such as sales, installation, service] are regulated within the licensing statutes. A careful review of state law and the actual services being rendered by the subcontractors is necessary.
If you are engaging subcontractors to install for you then get the Standard Subcontractor Agreement. If you are engaging independent salespeople be sure to get the Independent Sales Affiliate Agreement.
Any CA lawyers or license expert wish to comment, please do.
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reporting unlicensed activity
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Ken,
In NYC, who do you report unlicensed individuals that are maintaining or servicing CCTV, security systems on site.
Can a business/company do their own maintenance and certify their visitors, employees and customer's its operating and being maintained under the law.
It was my understanding that at least the boss had to be licensed and worker's will service business/companies system.
Thanks
Greg R
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Answer
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You can report unlicensed activity to the Division of Licensing Services at the Dept of State, Manhattan Dept of Consumer Affairs, the Manhattan Office of District Attorney, Complaint Division, and Office of NY Attorney General Consumer Affairs Division. Good luck. They are all pretty business chasing other criminals.
A business or home owner can install and service their own alarm without a license. The subscriber does not have to be licensed. This will not apply to fire alarm systems which have to be installed, inspected, serviced and monitored by New York CIty Fire Department authorized companies.
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Webinars
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December 4, 2013 12 noon EST Register here: https://attendee.gotowebinar.com/register/4919260455763006721
Title: 10 Things Residential Security Alarm Companies should consider BEFORE entering the world of Commercial Engineered System Fire Alarms
Presented by: Bob Williams, President of Briscoe Protective Systems and his Management Team.
Briscoe Protective Systems has been in the industry for 35 Years and has made the transition from a Residential Alarm Company in the late 70’s to a Engineered System Fire and Security Company that is an SDM Top 100 Company. Find us on the web at www.BriscoeProtective.com or on LinkedIn under Companies, Facebook and Twitter@BriscoeProSys
Description: There is a big difference between installing Residential Fire Systems and Commercial Engineered Fire Systems and there are “Key Factors” that Security Company’s should consider before attempting to go into this lucrative but challenging market.
Who should attend: Alarm company owners and fire techs.
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