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Comment on does contract have to have line item for surveillance from July 10 2014 article
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Ken
I think the question was, can he add to an existing contract by the mere fact that he installed additional security type equipment and the answer should be no. Any and all additional work needs to be scheduled and added as a rider and signed or write a new or an additional contract.
New work is not covered by adhesion of an existing contract!
"Have to? No." - "Question: does contract have to have line item for surveillance". Ken this is where you and I diverge on advice. The answer is YES, always and its not just "surveillance".
As the Executive Claims Administrator for SARRG (listed in the Alarm Exchange as the only industry owned provider of GL/E&O insurance specifically for low voltage contractors) the answer is YES, YES and YES.
I have a current claim where an alarm company is being sued because an employee added a device on a work order, which had NO PROTECTIVE provisions printed on it. At the time of the installation it is alleged that the unit was not tested properly, and then failed when the conditions existed that should have been detected. There was a valid contract for the original installation, but this offered no provisions for future additions.
The message has to be that each and every device must be listed on a properly worded contract, work order, service ticket or service contract.
An additional example is a notice we received of a potential claim involving a death. The alarm company was called on a T/M per call basis to make repairs to a CCTV system that it did not install. They had no provisions on the service ticket, no blanket service agreement for zero RMR but to create the contract relationship that survives each and every time a service call is performed. Should this become a suit I am sure we will prevail in getting our insured released but if will come at a cost because I am sure the case will reach discovery and we will need to depose the customer and our client to create the record of no responsibility based on the facts surrounding the event.
The latter is the prime reason why alarm companies need the proper form(s) of insurance and limits that are reasonable, as well as an insurer that knows when to fight and how to use the contract as it was designed.
I have written to you in the past about how The Hartford settled a claim for $135,000.00 dollars in which the installer and central station both had no exposure just to make a subrogation claim go away. Both the Installer and Central Station had 15 year old KK contracts and had no exposure but The Hartford had no interest to continuing a defense.
SARRG knows when to settle as in the prior example and when to stand up for the rights on the alarm company and defend to a proper conclusion.
Ken, the message is clear and the line is bright, every device must be covered by an agreement before it is installed, even if it is at the moment of the install. And remember the agreement must also be signed by someone who has the ability to enter into the agreement.
Bart A. Didden
Executive Claim Manager
Security America Risk Retention Group - SARRG
bdidden@securityamericarrg.com
www.securityamericarrg.com
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Response
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Bart you are absolutely correct. How does that feel !! I answered only the second question which asked if the contract needs to specify all of the different systems or equipment that is being installed. My response was that it was preferrable to do that, and the Standard All in One agreements do just that.
The first question asked whether new equipment added and installed to an existing system would be covered by the original contract for the original installation. The answer is no unless the contract had wording that covered additional equipment at later date, a provision that my contracts don't have and something I haven't seen in other contracts. And, no, I won't add it because it's not a good idea.
The Standard Form Contracts do come with a Supplemental Agreement which is used for add ons after the original installation. Or, you can get a new contract signed, and you would need a new contract for the sale and installation.
The alarm contract lists the equipment, systems and services in detail in an attached Rider, Schedule or Proposal. The Standard All in One agreements do specify equipment and services, but the details will be found in the rider or proposal.
Regarding you comment on proper insurance, handling claims is the single most important criteria an alarm company should look at when selecting a carrier. Much more important that the premium for that year. I say that year because after a claim the quoted premium is not likely to be available the next year. In fact, get a claim that the carrier mishandles by deciding to pay instead of fight, and you'll be lucky if the carrier is willing to cover you the next year.
Sarrg has an excellent record covering claims and handling claims. It's not the only carrier that but it is certainly the only carrier with an experienced alarm company owner / executive as its Executive Claims Manager, and that's because it's alarm industry owned and operated. I can tell you one thing, at least Sarrg doesn't have subrogation actions against alarm companies like Hardford and Scottsdale. I am monitoring a case where Scottsdale is suing under subrogation and defending the alarm company in the same case. Go figure.
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Re: Company looking for qualifier in Illinois from July 15, 2014
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Ken,
If you will refer the individual looking for a qualifier in IL to me, I have someone
that will do it for a reasonable fee. There is no charge for my referral.
Continuing great job on the newsletter and I like the revamp on your classified
section.
Best regards,
R. Anthony Smith
tsmith@securityfinance.com
Security Funding Associates, Inc.
Marketing and Financial Advisory Services
Tujunga, CA 91042
(626) 795-9199
(626) 705-4098-Cell
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Note: I didn't keep the email from the company looking for the qualifier so hopefully they will read this and call you.
We made need to start a new category for qualifiers. Here is a New York qualifier looking for company who need license in New York. Contact Derek at cell 347 400 1696 or email dereknegron1@gmail.com. Keep in mind that this is not an invitation for a qualifier to avail his or her license. Qualifying for a company comes with responsibility and duties, so be sure to document your arrangement for this position.
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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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Quick Response Dealer and Integrator Information and Technical Conference. July 15, 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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NYSESA - September 17, 2014 at Honor's Haven Resort, Ellenville, NY. This is the NYS Electronic Security Assoc annual meeting. Presentation on updated contracts and current legal issues will be at 10:30 AM. For more information or reservations contact Dale R. Eller, Executive Director (814) 838-0301 dalereller@itzsolutions.com
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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
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