Changes to Standard Contracts:
A recent update to the All in One contracts is the removal of the retained ownership of the Communication System. This provisions was causing too much confusion and with changes in technology becoming less relevant.
The Communication System was defined as the communication software and communication devices, such as cell, radio or internet or telephone connection equipment. It was separately priced and you retained ownership. Many alarm company owners want to include the Communication System as part of the sale, in which event I counseled that they write on the contract that the Communication System was sold to subscriber. The new change will alleviate the confusion, though the original version will be available if you want it.
A few other changes were made to the Inspection provision and the Service provision clarifying the alarm company's responsibility. Software repairs and updates are not covered by the Service contract and Inspections are the minimum required by code, AHJ or UL unless otherwise noted in the Schedule of Equipment and Services.
These are not essential changes that requires new contracts. For further information contact our Contract Administrator Eileen Wagda at 516 747 6700 ext 312
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follow up on ASP summit invitation
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Ken
I couldn't agree with you more. Allow me to add my praise for the summit that was held last year. David and the group at ASP are first-class, and the attendees came away with a world of knowledge and insight that could not be obtained anywhere else. Like you, I will be speaking there this year, and am already beginning to look forward to it. As an educational event , it is first-class. As a networking event, they have got all of the bases covered. As an enjoyable and fun time event, the venue and the schedule are designed to allow as much quality time with family as you might expect. I urge all of your readers to take a hard look at this, and enjoy Ken and my presentations as well as a host of others.
Best,
Ron
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Response
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Sorry about all the typos in yesterday's email regarding the ASP summit. Guess I was overly excited about the working vacation. Anyway, don't pass up this opportunity to attend this event. Call or contact David Pagano today at 585 225 1010 or david.pagano@aspsummits.com and be sure to mention me. Check out the event at www.aspsummits.com
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Question - Best selling practices
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Ken,
Would you consider offering a webinar on best selling practices to selling your contracts?
We appreciate your insight and contribution to the professionalism of our industry. It is especially valuable to small businesses that would otherwise have no access to such specific good legal advice.
Sincerely,
Caralee M. Gibson
GSC Systems, Inc
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Response
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Yes. We will schedule that webinar soon. "Which contracts to use and how to use them". If any "super salesmen" would care to share their success stories please let me know and you can participate.
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Question: indemnity
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Ken,
I am an avid reader of the news letter and have contributed several responses. I have an interesting discussion you may want to revisit as it covers so many issues pertaining to alarm companies.
Having companies named on your certificate of insurance and agreements to indemnify other parties. As you appreciate, as a lawyer, when a claim arises you sue everyone and sort out who really is to blame and has to pay. I don't think alot of dealers fully realize the implications of indemnifying other parties and or having them named on a certificate of insurance.
My understanding is that indemnification exists forever on work conducted for the person you indemnified. So if I install a $150 "lick and stick" residential alarm for a national dealer I agreed to sign an indemnification agreement with, without have a recipracol agreement in place, 5 years later if that house had a breakin and the national dealer failed to respond, I would be dragged into the case because of my service in the past and the agreement I signed. Also the National dealer could just file a claim to my insurance company and be covered without my knowledge or ability to defend it.
Am I thinking right or just being paranoid, to demand recipracol indemnity from National Dealers requesting to use use as their sub, and if I am not what advise can you give the 75% of installers who rely on work from National Dealers?
Thanks
Keith Olstrom
Vanguard Fire & Security Inc.
Boise, Idaho
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Answer
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I've seen some pretty knowledgable lawyers draft contracts calling for reciprocal indemnity provisions. Sorry, but I just don't see how that works. You would think that it cancels each other out, but it would be preferrable to provide that each party agrees to look to its own insurance coverage; no indemnity. When you see cross indemnity you need to read the fine print because it's likely, if the provision is to have any meaning at all, that each party is indemnifying something different than the other, perhaps only what it is accused of doing wrong. I also see that as a problem because often you don't know who did something wrong and it won't be until later on in the litigation that you can figure out whether indemnity applies. Bottom line, don't ask for and don't agree to cross indemnity.
As to adding another on your policy as an additional insured, sometimes it can't be helped if you want the job. Your carrier probably won't charge you extra for it and the coverage is supposed to be limited to things you did wrong, not first line coverage for the additional insured. Your broker should be able to assist you and explain what you're getting yourself into. You cannot however accept a broker's statement that never offer additional insured status, because it's not practical in today's business environment.
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Question: potential claim
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Ken,
I had one of my small commercial stores broken into. The alarm did its job, and got the police there in a timely fashion. The store is a Metro PCS cell phone store. Despite the alarm working, the thieves did make off with a few cell phones, thanks to the owners leaving them in a small glass case, that they smashed and grabbed.
The owner has filed a claim with his insurance company, and his insurance company is requesting a letter from my alarm company stating that the alarm was working and activated by the burglary. My question to you is does this letter open me up to any liability? The owner of the store has signed your contract.
Greg
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Answer
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It depends on what you put in your letter. If you admit error then perhaps yes. Seems like the alarm worked and your information may very well head off an action. If you did everything right you may as well willingly let the claimant know. It would be entitled to that information anyway if a lawsuit is started so it's better to try and head it off.
But, you're not the one who should be making that decision. You know about a potential claim and you should notify your insurance carrier immediately. You should also ask your carrier to engage counsel to advise you and protect you once you have heard from the claimaint. You may not be able to ask that the carrier engage me, but you can try.
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking Engagements
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Northeast Security & Systems Contractors Expo Thursday, May 22, 2014 10 am to 5 PM at Royal Plaza Trade Center, Marlborough, MA. registration www.expotracshows.com/neacc/2014/ Presentation on Alarm Law issues and Q&A will be at 2 PM. For more info contact Gary Spaulding, NEACC President
207-384-2420 gary@spauldingsecurity.com
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Quick Response Dealer and Integrator Information and Technical Conference. July 15 -16, 2014 at Holiday Inn - Independence Ohio. All alarm dealers are invited. For more information, schedule and to RSVP contact Margie or Renee at reneet@quickresponse.net or call Margie/Renee at 800 462 5353 www.quickresponse.net
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Alarm Association of Greater St. Louis. September 16, 2014. at Tech Electronics HQs office at 6437 Manchester Ave, St. Louis, MO 63139. Meeting is from 11:45 – 1:30 Video conference presentation starting at 12:15 CST. For more information or to register contact Tony Drago adrago@tyco.com www.alarmstl.org/
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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Electronic Security Summit for 2014. October 22-24, 2014 at the landmark Broadmoor Hotel. Colorado Springs, CO. For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC., (786) 999-9738 alex.quirin@aspsummits.com www.aspsummits.com