See Webinar announcement below

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Question -home automation adding security system

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Ken,

    I recently purchased your all-in-one alarm contract (for Indiana).  I do have a question that has been on my mind for some time:

    I install audio/video home automation systems which have the ability to control music, TVs, home theaters, media rooms, lights, HVAC systems, pools/spas, alarm systems, etc. in a home. There are instances where     I'm called to a job to install such a system and the client (i.e. homeowner) already has an alarm system installed and monitored by another company. I'm there to just install the home automation system. As stated above, the home automation system has the ability to control the alarm system. FYI, the way this typically works is that the alarm panel has a communications card (which uses a communcations protocol like a serial port on a PC) and then the home automation systems connects to this communications card (thus providing control of the alarm panel). Typically, the control from the automation system is just to arm and disarm the alarm system. In addition, the home automation system can use the alarm system to add some fancy logic such notifying the homeowner via text message that the patio door is left open for 5 minutes or more (let's say by the homeowner's kids and it's summertime with the AC on). In this example, the people are home and the alarm system is disarmed. The home automation system is using the alarm system to add functionality.

    Since the system I install has the ability to control the alarm system, could I be liable if a lawsuit was brought on by homeowner as a result of an issue with the alarm system (such as a malfunction of the alarm system resulting in some form of loss)?

    I was told to NOT have the home automation system interface at all with the alarm system to eliminate any chance of liability. Nevertheless, I would like to provide a system with a simple user interface that can control about everything. So if want the home automation system to interface with the alarm system, is there a clause (or paragraph) that I can insert into my Audio/Video Contract that would protect me from any suit pertaining to the alarm system?

    Please note: The home automation systems I install are different than the systems used by monitoring companies such as Telguard and not affiliated with any monitoring companies. The systems like Telguard are generally too limited in terms of control capabilities for my business.

JK

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Answer

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    You should not use a home entertainment contract for security systems.  The Residential All in One is designed for security systems but you could use it for home entertainment or automation systems when integrated with the security system.  Exposure for security systems is obviously broader than entertainment systems.  It would be over kill to use an alarm contract for home entertainment.  A home owner would not expect to find an exculpatory clause in a home entertainment contract and the contractor would find it difficult to justify that provision in that contract.  In the security contract it can be justified.

    If your primary contract is home entertainment or integration of non security systems, and you then connect with the security system, you need a properly drafted alarm contract.  You can't have the TV control turn off the alarm system by mistake without liability.  

    Just like you wouldn't try and sell a TV as a radio, telling your subscriber to just keep the screen dark and listen to the sound, you shouldn't use contracts designed for one purpose for another type of system.  You can however use a contract for a higher exposure system for other systems provided the systems are properly described.  Therefore, if installing a commercial fire alarm and the sub wants an intrusion or temperature control system, you can use the Fire All in One and include the intrusion or temperature systems.  You could not use the Commercial All in One [designed for security systems other than fire] and include a fire alarm system.  

    The Standard Form Contracts are designed for broad yet specific use.  These contracts are created to meet the needs of security companies and are the product of input and advice from multiple alarm company owners explaining their needs and expectations.  I don't necessarily need to sell them with a warning "Dangerous if not used as intended" but there is no reason to take additional chances and risks.  A good example is the new Fire Suppression Contract.  Alarm companies involved in fire suppression systems were using the Fire All in One which was designed for alarm systems, not suppression systems.  The new Suppression Contract is for suppression systems, and shouldn't be used for fire alarm systems.

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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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WEBINARS

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Topic:  Integrating Quick Books with alarm company management software and credit card processing for RMR.  You will learn how to inexpensively automate and streamline your alarm business management using sofrware designed to work with Quick Books.  Hands on tutorial will demonstate how easy and useful this software can be.

 

When:  February 13, 2014 at 12 noon to 1 PM.

Register here:  https://attendee.gotowebinar.com/register/3856781481977174786

 

Moderator:  Ken Kirschenbaum

Panelists:  Mitch Reitman www.sicc.us;   Scott Taylor www.FI-Soft.com; Thomas Aronica  www.skybankfinancial.com

Who are the panelists:

    Scott Taylor, with Fi-Soft and manages the firms product development and partner relations activities..  Fi-Soft specializes in QuickBooks accounting software, training, and integrated solutions.  As a founding member of the Intuit Reseller Channel, Fi-Soft supports all versions of QuickBooks software and carries the highest level certifications from Intuit.  

    Mitch Reitman is a tax expert specializing in the alarm industry.  Besides accounting and tax work, he is an active and effective business consultant and alarm business broker.

    Thomas Aronica with SkyFinancial has a focus on credit card processing for the alarm industry including RMR processing, and integrates and works with Fi-Soft's Quick Books. 

Who should attend:  alarm company owners, office managers and those involved in alarm company management, accounting and accounting records.  

 

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