February 7, 2012
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Question on lock out codes
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Hey Ken,
I'm sure you get asked this question a lot but what is the legality of obtaining a lockout code from a previous installer if the customer owns their own equipment? On a side note I have a customer who is in a dispute with his current provider, what steps can/should my customer take if the alarm company remotely logs into the panel and turns the alarm into a nuisance. Example, changing the enter and exit delay to around 5 seconds, disabling the exterior contacts and locking out the equipment so the customer needs to purchase a new panel and keypad to change companies. Thank you very much for your time.
Adam
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Answer
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I do get this question often, but the flip side of it because I represent alarm companies, not subscribers. Unless there is a specific statute or rule in your jurisdiction you do not have to reveal or release a lock out code. Though this is a general statement I can imagine plenty of situations where the subscriber is entitled to the panel key and the pass code.
When there is an outright sale and the subscriber owns the equipment it would not be appropriate to install a locked panel and withhold the pass code. It would be appropriate if you are providing monitoring and service, or the system is within its warranty period, though arguably even then the subscriber should have the key and pass code and if it's used the warranty is voided. Certainly you don't have to repair any damage or operational function caused by the subscriber's tampering or permitting anyone other than you access to the system.
Alarm companies that take over systems encourage their new subscribers to get the pass code so that a new panel doesn't need to be installed and wired. That's not a particularly good reason for the outgoing alarm company to provide that code, especially if the subscriber has breached an alarm contract and owes money.
I provide in the Standard Form Contracts that have monitoring provisions that the communication software is owned by the alarm company and will be provided only once the subscriber completes full performance of the contract.
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More on getting sued - follow up on Feb 4 2012 article
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Ken,
You may choose not to distribute this letter since it is signed "anonymous". If you read it, it will become apparent why it has to be anonymous, since revealing my identity and my company could place a business in my area at risk. The entity involved was only a potential client, and one that we declined. Still, the entity would be well known if my name or location were to be revealed and I wouldn't want to think that someone figured out the entity and made them a target.
John Romero's [see Feb 4 2012 email article] letter struck a chord with me, as we were recently faced with a similar dilemma. We could have picked up several monitored accounts with minimal effort, but there was one obstacle...the client insisted that his systems be installed in such a way that we knew would compromise the security of his property and the safety of the potential client and his employees. I pointed out to him exactly where his (major) security flaw existed and that for me to knowingly install an alarm system in such a negligent manner would leave my company open to a bankrupting lawsuit. He became irate and said he wanted us to do the job because of our reputation, but if we were not willing to do it in the manner he desired there were plenty of other companies who would.
Unfortunately, he was absolutely correct in that statement. There are plenty of companies who sometimes willingly, or sometimes simply unknowingly, install alarm systems in a manner that leaves them open to liability. Errors and ommissions insurance is great, but (and please correct me if I'm wrong) if I knowingly choose to install a system in a manner that places life and property at risk (willful negligence), I am willfully disregarding the provisions of my E&O policy, even if the client says he will sign a waiver of liability. Would he be able to persuade his insurance carrier to sign the waiver as well? Don't hold your breath. I simply won't place my company in the position of possibly having to defend itself against willful negligence charges. And I'm not just talking about property. If I had installed the systems in the manner he desired and an armed robbery ended up with someone dead, my willful negligence could land me in prison for manslaughter on top of any civil actions. His waiver of liability, even if his insurance company agreed to it, would hold no weight against criminal prosecution.
We declined the jobs. We missed out on several monitored systems, but I don't have to lie in bed every night wondering if tonight will be the night that the hole in his security will be discovered and exploited and my company ends up getting sued by his insurance company for negligence. To me, common sense (and a thorough analysis of all potential threats) trumps greed every time.
Anon.