Alarm/security companies should understand the difference and significance
of service contracts, service slips and completion certificates.
Each document is designed to protected alarm companies from liability
arising from claims for losses suffered by subscribers.
Most claims against alarm companies (and I include security companies who
install, monitor or service security equipment, including fire, access
control, CCTV and other security devices or services) claim that the loss
was caused or contributed to by the alarm company's breach of contract,
negligent design or installation of the system, monitoring or service of
the system.
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In order to rely on your contracts protective provisions you must have a
contract that specifically covers the alleged conduct.
Design and installation, and warranty work is covered by the sales
contract;
monitoring by the monitoring contract (and you need your own monitoring
contract -- not the one supplied by the central station);
service to the system is covered by the service contract.
If you don't have a service contract then you are not contractually
protected for your service work.
If the complaint against you includes an allegation that your service was
contrary to your agreement to service and repair the system, (a breach of
the contract) or that you were negligent in your service, then you will
have to defend the action without benefit of a contract that would have
certainly protected you; perhaps saved your company or a good deal of its
assets. All properly worded alarm contracts contain specific protective
provisions, such as the exculpatory and limitation of liability clauses.
A service contract covers all service that you will provide.
My standard form is designed so that you or the subscriber can select
either a per call relationship or one where the subscriber pays a recurring
amount for service.
The contract is signed once and self renews month to month after its
initial term. The service slip I offer (and it's not on the order form and
has to be ordered separately by email or phone) is similar to the service
contract but covers only a single service visit or job. It is not ongoing.
It's application is therefore very limited and I do not prefer the service
slip to the service contract.
You need to use a service contract for every subscriber.
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A completion certificate is not a substitute for either the service
contract or a service slip. Although the one I offer does have the
exculpatory clause on it, it is more of an acknowledgment by the subscriber
that you were there and that the alarm was fixed and working when you left.
It's good practice to use the completion certificate after every
installation and every service call, but it is not as comprehensive as a
service contract.
Only the service contract will add value to your business, and only if you
select recurring revenue instead of the per call relationship. The service
slip and completion certificate do not provide for recurring revenue.