Dealer acting for subscriber - important article
If you monitor subscriber alarm systems by subcontracting the monitoring to
a wholesale central station, you need to read this article.
If you are a central station, monitoring other dealer's subscribers, you
need to read this article.
This topic was addressed in a previous article, but that article was
lengthy and I want to make sure the issue receives the attention it
deserves.
Do you communicate instructions to the central station regarding your
subscribers' systems? Can you put a system on test, vacation, change call
numbers and authorized personnel, change zones and reporting instructions,
change codes?
Does your central station take instruction from you, either over phone, fax
or email?
If you or the central station answer yes to any of the above, then you must
review your monitoring contract and the three party monitoring contract
[between you, subscriber and central station] to find the provision that
authorizes you to act for your subscriber.
There are only a few ways you can be monitoring your subscriber's alarm
systems.
1. The most dangerous way is without any contract at all. You have no
protection. You must have your own monitoring contract; the three party
monitoring contract your central station has you get signed by your
subscriber is not sufficient to protect you. You must get your own contract
and use it.
2. You use just your monitoring contract, and you either maintain your own
central station or you subcontract monitoring to a wholesale central
station, but that central station does not require that you use a three
party monitoring contract.
3. You use your own monitoring contract and you also have your subscriber
sign a three party contract provided by the central station. This is by far
the best method of conducting your monitoring business; both for you and
the central station.
Some contract signed by the subscriber must authorize you to act on the
subscriber's behalf when dealing with the central station. Without such
explicit authorization you will be scrambling to find authority if there is
a miscommunication that contributes to a missed signal and no response.
If the central station has a direct contract with the subscriber [which it
does with the three party contract] that contract usually has subscriber
information including codes and call numbers, etc. If that contract signed
by the subscriber does not authorize the dealer to make changes then by
what right do you communicate those changes to the central station?
If you are using your own monitoring contract, and a three party contract
provided by the central station, you have two opportunities to include a
provision that authorized you to act on behalf of the subscriber when
dealing with the central station. Since that is typically the reality of
the relationships, shouldn't your contract(s) provide for it?
Failure to include this provision exposes you and the central station to
unnecessary risk. Check your contracts today.
If you can't find the provision that authorizes you to act for your
subscriber then you should either get that authorization by separate
written agreement [letter] and you should change your contracts.
I am happy to circulate all relevant and informative comments and
observations.


If you monitor subscriber alarm systems by subcontracting the monitoring toa wholesale central station, you need to read this article.If you are a central station, monitoring other dealer's subscribers, youneed to read this article.This topic was addressed in a previous article, but that article waslengthy and I want to make sure the issue receives the attention itdeserves.Do you communicate instructions to the central station regarding yoursubscribers' systems? Can you put a system on test, vacation, change callnumbers and authorized personnel, change zones and reporting instructions,change codes?Does your central station take instruction from you, either over phone, faxor email?If you or the central station answer yes to any of the above, then you mustreview your monitoring contract and the three party monitoring contract[between you, subscriber and central station] to find the provision thatauthorizes you to act for your subscriber.
There are only a few ways you can be monitoring your subscriber's alarmsystems.

1. The most dangerous way is without any contract at all. You have noprotection. You must have your own monitoring contract; the three partymonitoring contract your central station has you get signed by yoursubscriber is not sufficient to protect you. You must get your own contractand use it.

2. You use just your monitoring contract, and you either maintain your owncentral station or you subcontract monitoring to a wholesale centralstation, but that central station does not require that you use a threeparty monitoring contract.

3. You use your own monitoring contract and you also have your subscribersign a three party contract provided by the central station. This is by farthe best method of conducting your monitoring business; both for you andthe central station.

Some contract signed by the subscriber must authorize you to act on thesubscriber's behalf when dealing with the central station. Without suchexplicit authorization you will be scrambling to find authority if there isa miscommunication that contributes to a missed signal and no response.If the central station has a direct contract with the subscriber [which itdoes with the three party contract] that contract usually has subscriberinformation including codes and call numbers, etc. If that contract signedby the subscriber does not authorize the dealer to make changes then bywhat right do you communicate those changes to the central station?If you are using your own monitoring contract, and a three party contractprovided by the central station, you have two opportunities to include aprovision that authorized you to act on behalf of the subscriber whendealing with the central station. Since that is typically the reality ofthe relationships, shouldn't your contract(s) provide for it?Failure to include this provision exposes you and the central station tounnecessary risk. Check your contracts today.

If you can't find the provision that authorizes you to act for yoursubscriber then you should either get that authorization by separatewritten agreement [letter] and you should change your contracts.I am happy to circulate all relevant and informative comments andobservations.