KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Should you sign alarm contract for your personal residence if serviced by your company May 16, 2024 *********************** Should you sign alarm contract for your personal residence if serviced by your company *********************** Ken Should I sign an alarm contract for my personal house with my alarm company? I can see how it makes sense from a liability standpoint in the event of a loss. Should I also be charging myself for monitoring? Would $1 a month be enough to make the contract hold weight in the event of a claim or do I need to charge standard rates? Ryan ************************ Response ************************ A great question and I am sure most of you are second-guessing the answer because most of you have not signed a contract with your alarm company. It’s a good idea; easier than “finding” a contract if the need arises. And, when would that be? I think Ryan hits the nail on the head focusing on liability issues. There could be a massive loss [use your imagination to pick the casualty or cause]. You or others in your residence at the time or otherwise affected, suffer loss to property or person. The loss could be covered by insurance or you or others affected simply want to look for a deep pocket to recover for the loss. Could be the alarm equipment or service may have contributed to the loss [not a position I would typically take]. Who is at risk? Your alarm company if it was involved with the alarm or alarm services. Your central station if what may have gone wrong involves monitoring, and that puts your alarm company right back in the mix because it indemnifies the central station; same of some of the software providers and manufacturers. I wouldn’t be surprised if there was some fine print in your E&O coverage that you won’t be covered for a loss to your personal property [the insurance experts are welcome to comment on that issue]. Certainly your central station is going to be looking for your contract; your E&O carrier as well. If you don’t have a contract, even if the claim is covered, you may find the central station and your carrier souring on continuing to do business with you. Keep in mind that a claim for a loss need not be made by you; it can be made by your carrier through subrogation or by third parties affected by the loss. Those claims would be out of your control but you would certainly be blamed for the claims, especially if large enough to really matter. What’s the downside to signing a contract with your company? None. Do you need to charge $1.00 per month or for the entire contract terms? No. While contracts do need to be supported by “consideration” that doesn’t always mean money. The lawn sign in your yard, or the company’s bragging rights that it services your alarm, might be enough consideration. So, the answer to the question is yes, have a contract and for consideration you can put “$0.00 and other consideration” ******************* STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
