Question:
Hi Ken,
Thanks for the e-mails. I have a question for you.
We provide PERS (personal emergency response systems). On occasion we get a request to provide a medical response system to an end user and to invoice the insurance company or veteran's affairs (a third party that is not a family member). Who sould we have sign the monitoring contract with limitation of liability and a 3rd party indemnification clause.
1 - the end user
2 - the organization paying us
3 - both
We have actually purchased your PERS contract but have not started using it yet. Does it include a clause that would allow us to have one or the other sign while still covering us against liability from the other party?
Also, if we provide these services to an elderly person and their child is paying for services, who should sign the contract?
Regards,
Kevin Buckland
True Steel Security & Northern Communications
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Answer:
You need a separate PERS contract. Personal Emergency Response, or Medical Alert, or whatever you want to call it, is starting to see new legislation state by state. We have listed the statutes that have come to our attention on our web site under http://www.kirschenbaumesq.com/alarmlicreqstate.htm.
You can purchase a PERS contract at www.alarmcontracts.com.
A PERS contract should be signed by the person you are providing the service to. If that person is unable to sign then someone authorized by power of attorney can sign. If your contract provides that a third party is going to be making the payments then of course you will need to look to that person or entity.
If the third party stops making payment it would be good idea to give the covered person notice that you are terminating service. When it person receiving the service is also paying for the service then that person's breach would generally permit termination of service. Some notice, or whatever notice may be required by contract or statute, should be given.
This advise is consistent with other types of alarm monitoring. It is not uncommon for home owner associations or condo or coops to pay for the alarm monitoring or service for the homeowners. Each home owner should be signing a monitoring and service contract even if the contracts provide for a third party to pay. Also, make sure the third party signs a contract agreeing to pay and indicating to whom and what service you will be providing.
Be careful to know your obligations to both the person receiving the service and the person paying for it. One may be entitled to different notice under different circumstances. The payor may for example be entitled to some notice if payment is not received, time to cure and notice of termination. The person receiving the service may be entitled to that notice or some other notice. Your contract will spell out the notice and how it is to be delivered. If the contract is silent on notice, then be practical; give some notice anyway.