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too many still not using contracts
October 2, 2017
too many still not using contracts
    Regarding your response to Bart in the Sept 26, 2017 article, I find it amazing that while teaching license or continuing education classes or dealing with potential clients, I find so many people in our industry who do not use contracts at all, excepting the ones provided by (and protecting) the CS.  It scares me.  
    I tell them about the three legged stool and how without one of the legs, you fall over.  Leg one=proper business entity, get a corp. or LLC and have it done properly (lawyer) because without that protection, your personal assets are at risk,  Leg two=contracts, written by an industry expert who will be able to defend them and finally, Leg three=insurance-see the exchange on K&K blog.  Without one of the three legs, you will fall on ...oh you know.   
    In this business, it's not if you will be in litigation, but when, and like other of life's endeavors, you need protection. 
Joseph Hayes, CPP, PSP, SET
All County Security Inc.
1604 Eagle Bay Drive
Ossining NY 10562
    Every day I talk to alarm company owners, many of whom read this forum daily, who do not use proper or any contracts.  Joe thinks it's scary; I think it's foolish.  Why:
  • you leave yourself exposed to lawsuits for subscriber losses, and you're more likely to lose the lawsuit
  • you create less value for your business.  The equity in your business is a direct correlation to your RMR under contract
  • you will have less choices for a central station, because the better ones won't want to deal with you
  • you will have less choices for alarm industry E&O insurance because the better carriers won't want to insure you
  • it's more likely that your employee will leave, steal your confidential and proprietary data and papers and then steal your customers, directly competing against you
  • you are more likely to have higher attrition, especially if you have changes to your operation or sell the account to another alarm company [and you'll care if you've guaranteed the account]
    Let's see if I can come up with good reasons not to use proper or any contracts.
  • you won't have to spend 100 hours of your own time putting together a crappy contract
  • you won't have to impose on your family attorney for a contract that he/she won't want to do, won't know how to do and will therefore over-charge you or never deliver it finished
  • you won't have to store all your subscriber contracts
  • you will probably be able to retire much earlier since you'll be going out of business sooner than later
    So I think the better idea is to get and use proper contracts.  You may not agree, and that's what makes a horse race.
    Get your contracts today at  Yes, they will still be availabe tomorrow.  Haven't you waited long enough?  


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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
516 747 6700