March 28, 2011
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Question - terminating monitoring
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Ken
Is there a proper way to shut someones central station monitoring? They haven't paid and they told us to shut it. Should we send a certified letter? Thank you
Hy Haddad
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Answer
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Don't waste your money on ceritifed mail. Any communication, letter, fax or email, will suffice, unless your contract or a local law requires a specific notice. Keep in mind that in some jurisdictions notice goes to the subscriber and AHJ.
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Question - audio in NJ
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Ken,
I am being told by a colleague that any type of audio recording is illegal in NJ. Is this true? I am a new Company and have installed a few DVR's / Cameras. But I don't offer Audio because I am being told its a no go in NJ.
Can I offer Audio recording with my Camera installations?
Regards,
Mfs Systems llc
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Answer
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No audio without consent. See your state statute at http://www.kirschenbaumesq.com/avstatutes.htm
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Question - where to get contracts
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Ken,
Charlie Lester says you're the man we need to talk to. Our company has been using Installation & Monitoring Contracts written by Monitronics Int. for the last 4 years. We are doing less & less business with Monitronics & thought it wise to have our own Agreements written up.
I was hoping that you would have access to some kind of standardized Agreement that we might be able to purchase / tweak to become our own.
Please let me know if you can help or if you know someone that can.
Thank You,
GT
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Answer
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I'm flattered. The contracts you need, no matter who you are doing business with, can be found and ordered here: https://www.kirschenbaumesq.com/alarm2.htm
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Question - PERS and insurance
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Ken
I have spent some time shopping my PERS competition and I have noticed there are quite a few companies that do not have a contract.
How is this accomplished. I remember having to produce a copy of your contract to the insurance co. to get E&O insurance and to get monitoring.
Are they just plain foolish, lucky, or know something I do not. Are they risking a lawsuit with the protection of a contract, or having E&O insurance.
Is there an insurance company that will cover a PERS company and not have a contract in place.
I do sometimes find the mention of having to sign a contract seems to put a halt to my sales pitch, even though we use a 30 day term for cancellation.
Thanks
Ron
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Answer
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Companies that offer PERS without insurance coverage are playing a risky game. I don't recommend it. Too cheap or stupid to spend $200 to buy a PERS contract leaves me speechless.
I don't know any insurance companies dumb enough to offer PERS insurance coverage without a contract. In fact, some of the traditional alarm E&O carriers don't like to write PERS insurance or won't at all. Let's hear from some of the alarm brokers who specialize in this area - what's the best PERS carrier and do they require contracts?
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Question - modifying alarm system to add tenant
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Hi, Ken
I have a contract to monitor a business that takes up an entire office building. They now want to lease one of the offices to a separate tenant. I can separate (partition) the alarm system for that office, but they just want me to add some codes for the tenant and be done with it. How should I proceed?
JS, Owner
Safe and Sound Co.
Spring Valley, CA
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Answer
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You are adding a new subscriber and you need a separate contract for that subscriber. If parts of the system are shared just state that in the contract.
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Question - RMR valuation
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Ken
Can you send me the article concerning account RMR valuation? It was some how deleted from my saved list. I am trying to raise capital to pay debts and the potential buyer is stating that he only pays @32. He has a large client base and states he has never payed 35-40. Any suggestions?
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Answer
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My prior articles can be found at https://www.kirschenbaumesq.com/emailarticles.htm
Use your Edit/ Search and Find feature to locate articles on RMR
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Comment on California Proposition 65
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Ken;
As usual, your legal analysis is right on the money. Let's hope that the federal government doesn't decide to add a "Proposition 65" to their already formidable anti-business arsenal. It's bad enough that an industry like ours that generally speaking makes minimally invasive holes into the walls of homes(by that I mean holes that are measured in inches squared, not square feet) and have to be licensed by the EPA. Yes, virtually all of us in the trade use lead acid batteries, but there is one word that we have been leaving out: They are SEALED Lead Acid batteries. You are far more likely to contract an illness from shaking someone's hand on the street than from touching one of those batteries. I will say, that on a rare occasion a battery may become defective and leak. . But for the most part, they leak just inside the alarm cabinet which is locked. I carry nitrile gloves on the truck and gallon size Zip Lock bags for just such emergencies. How much more do we as an industry have to do to protect ourselves and our customers yet still remain profitable? Maybe there should be a clause in the contract that says "these products contain lead acid batteries. If the customer is foolish enough to let their children play inside the brain of the alarm system or other components, we must absolutely be held harmless." This is absolute insanity. Is it any wonder that California is bankrupt? Henry David Thoreou was right. "That government is best which governs least."
John from NJ
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Question - software valuation
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Hi Ken,
I would like to say Thank You to you and your staff, I read every one of your emails sent out to me six times a week, and the emails are in my email box at 7am every morning, GREAT reading.
I have two questions, I use your standard monitoring contract and section (3 B) is the amount paid to the alarm company for monitoring per month. My question is if the monthly charge goes up does another contract have to be signed by the subscriber? If I put in section (2) N/A for valve of software and equipment would that be a problem down the road?
Thank You Again!
Steven Pagliaro
Safe World Alarm Co.
Staten Island, New York
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Answer
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You don't need a new signed contract when the monthly charges go up; that is built into the Standard Form Monitoring Contract. You can leave the value of the software out and it won't be a problem, but you won't be able to add that value to any collection lawsuit you may start in the event your subscriber breaches the contract.