KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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What Service Plan covers / what Concierge Program covers
September 9, 2023
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What Service Plan covers / what Concierge Program covers
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Ken,
We are looking to make the most of the Kirschenbaum Contracts we purchased and how to best use the Repair Service Plan clause in the Commercial All in One and Fire All in One.
The plans say they cover “wear and tear” but do not cover most incidents that would result in damage or repairs and consumables.
What would be covered under the service plan?
A smoke detector out of sensitivity?
A lock that stopped working on an access control system?
Is a non-functioning horn/strobe a repair or wear and tear?
Is there an alarm law article that would help to better understand this or a previous webinar you had on the topic?
Assuming these questions are covered under the Concierge Program but if not send me a bill.
Thanks, and have a great day.
Dane
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Response
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It’s interesting how you perceive how the Service Plan is presented: “The plans say they cover “wear and tear” but do not cover most incidents that would result in damage or repairs and consumables.”
The Service Plan most certainly does not state that it does “not cover most incidents that would result in damage or repair and consumables”. Quite the contrary, the Service Plan states that it covers labor and material for damage caused by ordinary wear and tear. Yes, it does specifically provide exclusion for lightening, batteries, damage caused by customer or external cause, obsolete or end of life equipment, but these particular incidents are not portrayed as the “most incidents” that cause damage.
Let’s consider the Service Plan and why you want it and why the customer wants it. Funny thing is that both you and the customer really want the same thing, a system that works, doesn’t break down and never needs repair or service. When you sign up a Service Plan with RMR that’s your hope, no service calls, just collect RMR. The customer on the other hand figures, maybe from experience [because not all service plans are signed at time of a new installation; some may be older systems] that repairs are likely and the Service Plan will not only make it more likely that you will show up and fix the problem, but the costs will be set, at least in some cases.
What is covered may be a fluid interpretation depending on how many service calls a customer has had. You’re not going to collect 43 months of RMR for service, never doing a service call, and then charge the customer for a service that might be questionably covered by the plan, especially if it’s a minor repair.
Three examples of need for repair are mentioned above, but in none of the examples are we told why the device requires repair. I may not have the technical expertise to tell you whether it’s ordinary wear and tear. How could a smoke sensor lose sensitivity? Is it from bugs, dust, cleaning fluid, paint? A lock stops working because why? Was a door closed too hard, jam out of line, humidity causing rust or greasy hands mucking up the device? Strobe doesn’t just stop working, unless it does; something caused it to stop.
I suppose you could take the position [not one you’d use in a sale’s pitch] that the alarm devices will not suffer damage by ordinary wear and tear; most if not all damage will be something else and not covered by the Service Plan.
I don’t want to sound cynical and talk you or the customer out of the Service Plan. Absent some recognizable outside damage to a device you’re going to cover it. My Honeywell keypads have stopped working so many times I lost count. Sometimes the tech did some programming and fixed it, sometimes it was a battery and sometimes it had to be replaced. I suppose some of the times the keypad was not working because wrong codes or buttons were pushed. All repairs were covered by the service plan.
Final word. You want to correctly and accurately charge for the service plan. Service Plan RMR is not as valuable, generally, as monitoring RMR, but still should fetch a multiple of 30 times or so. That can add up and it is an important number when you consider that most alarm companies cannot sell repair service revenue that is not paid pursuant to RMR contract.
All alarm companies have access to K&K legal services and Concierge Clients have more access and more benefits including fee reduction and discounts and free services. If you’re not part of the Concierge Program then check it out because you should be. See the benefits here.
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WEBINARS SCHEDULE and REGISTRATION: SOFTWARE // CENTRAL STATIONS
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SOFTWARE WEBINARS:
With all the discussion, and dissatisfaction, about management software our first webinar series is by software providers offering comprehensive software programs for the alarm industry.
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Title: Fieldhub: All In One Operations and Accounting Software For Security and Fire Integrators
When: October 3, 2023 noon ET
Why attend: FieldHub is a comprehensive software program that integrates proposals, planning, warehouse inventory management, scheduling, field technician mobile applications, invoicing, accounting, tracking systems and devices, creation and linkage of a central station account, and much more
Who should attend: managers and owners
Presented by: Miles Fawcett, Founder and CEO of FieldHub Inc. 202.417.8196; miles@fieldhub.com www.fieldhub.com
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum PC
Register here: https://attendee.gotowebinar.com/register/2290942861013931612
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Title: Innovative Business Software: operating software for central stations
When: October 5, 2023 noon ET
Why attend: Innovative Business Software is central station solution to smooth operation and integration
Who should attend: managers and owners
Presented by: Jen Kolind, President and CEO of Innovative Business Software Inc. 469 556 2822; jens.kolind@innovative247.com www.innovative247.com
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum PC
Register here: https://attendee.gotowebinar.com/register/2817426411948243036
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Title: WorkHorseSCS
When: October 11, 2023 noon ET
Why attend: Alarm business operating software solution for Sales, Field Service, Customer Service, RMR (Recurring Monthly Revenue), Electronic contracts and Digital Signatures, all conveniently housed in one unified platform. Streamlines your alarm company's processes with Single Point of Data Entry solution. Integrates with over 40 Central Stations, along with leading platforms like Alarm.com, Alula, resideo, SecureCom, and SecureNet.
Who should attend: Managers and owners
Presented by: Steven Hayes, 941.229.8200 steven.hayes@workhorsescs.com www.WorkHorseSCS.com
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum PC
Register here: https://attendee.gotowebinar.com/register/3965237386615522648
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Central Stations series: Why You Should Be Monitored BY Our CS
Hear from the leading central stations and “Why you should be monitored by” that central station. The topic of remote operator monitoring from outside the central station facility and the dynamics that issue presents is sure to come up. The question you need to be asking is why isn’t your central station participating and why are you still using your central station if it’s not participating?
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October 17, 2023 noon ET, Emergency 24
Registration Link: https://attendee.gotowebinar.com/register/5032873072502046552
October 18, 2023 noon ET, Statewide Monitoring Corp
Registration Link: https://attendee.gotowebinar.com/register/3560536843132524128
October 19, 2023 noon ET, Legacy Security Services
Registration Link: https://attendee.gotowebinar.com/register/4084258420664728661
October 24, 2023 noon ET, National Monitoring Center
Registration Link: https://attendee.gotowebinar.com/register/106284724856601695
October 25, 2023 noon ET, Dynamark Monitoring
Registration Link: https://attendee.gotowebinar.com/register/5050152997423183449
October 26, 2023 noon ET, COPS Monitoring Registration Link: https://attendee.gotowebinar.com/register/1774793620122519136
October 31, 2023 noon ET, Rapid Response Monitoring Center
Registration Link: https://register.gotowebinar.com/register/2959829660260960857
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STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com
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CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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https://www.kirschenbaumesq.com/page/alarm-exchange
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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
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
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