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QUESTION:  3 DAY NOTICE OF CANCELLATION
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Ken 
 If a customer cancels an A/V contract within 3 days after I do all the work do I have to refund the Labor amount paid? I could be there multiple days doing all the work. Also, do I use the same Cancellation Notice for A/V as I do for Home Security?
Thanks, 
Jon
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RESPONSE
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     If you dont wait the 3 days and you dont have a waiver from the customer [which is not effective in all jurisdictions] then you most likely can't recover anymore money and you will have to refund what was paid and restore the premises.  That harsh result may be different depending on your state but the cancellation form may tell you the penalty.  If not our office can check that out.  The state cancellation notices are posted on our website at https://www.kirschenbaumesq.com/page/alarm-law-issues and often the cancellation form has the information regarding failure to comply with the notice provision.
    You need the cancellation notice on all home sales unless the sale takes place strictly in your office, which is rare for alarm business.  
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 NATIONWIDE LICENSING ISSUE
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Ken,
    I have an opportunity to work with a client to do all of the security and automation work across the nation for approximately 100 sites. I realize that there are licensing and low-voltage issues that I would need to overcome, as well as insurance considerations. From what I understand, you do have multi-state contracts that may address the legal side.
    My questions are:

  • What do I need to be aware of in terms of liability?
  • What do I need to consider if I have to sub out some of the work out of State?
  • How do I protect my interests where subs from out of State are considered?
  • What should I be asking of my subs  in terms of insurance?
  • What should I be asking from my insurance companies, including workers comp?
  • What is included in your multi-state contract that helps protect me?
  • Any other considerations

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RESPONSE
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    From a technically legal perspective it is not likely you are permitted to accept work in any jurisdiction where you are not licensed to perform the services you intend to provide.  Licensing generally covers

  • sale solicitation
  • sale
  • installation
  • service
  • monitoring
  • inspection

    You can't perform or agree to perform any activity that requires a license unless you have that license. In your situation you will be contracting in the state that you do have a license, so that covers the sale.  You may be permitted to use licensed subcontractors in the jurisdiction to perform installation, service, inspection and monitoring, in which case you can accept the work.  Each jurisdiction needs to be checked to see what's required.   
    You should check with your insurance broker and read your insurance policy to make sure there is nothing in there that requires that you be licensed in order to be insured.  That may have been a question when you applied for insurance, and your response should have been truthful when you signed the application.  But continued license may not be a requirement of the policy, but it might be.  You don't want to risk a disclaimer of coverage for lack of a license in a jurisdiction where the subscriber is located and the work was performed. 
      It's not likely that it makes sense for you to get licensed in jurisdictions where you have only a single account and you don't intend to expand in that jurisdiction.  If you are licensed in the jurisdiction where you are entering into the contract and you use licensed contractors to do the work you probably will remain off AHJ radar.  If you want to do nationwide licensing then you will need to get the licenses.  If you're doing residential work then you'll need the Residential All in One for that state.  If you're doing DIY residential work with monitoring you need the Nationwide Residential form.  That include alarm work or PERS.  For assistance with contact our licensing and contract departments.
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    For licensing assistance contact our Alarm Licensing Department: Jesse Kirschenbaum, Esq. at 516-747 6700 x 307 Jesse@Kirschenbaumesq.com or Nicoletta Lakatos, Esq. 516-747 6700 x 311 NLakatos@Kirschenbaumesq.com, or call our Contract Administrator Eileen Wagda at 516-747 6700 312 for contract information that includes licensing issues.