KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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comment on alarm.com and alarmnet / warranty charge in DIY agreement
November 24, 2018
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comment on alarm.com and alarmnet
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Ken,
We rarely use Alarmnet but when forced to, because of a customer or bid requirement, we do. Our insurance provider raised issue with indemnification in the contract Alarmnet wanted us to sign, and we have the end user sign a hold harmless provided by AlarmNet. We do NOT indemnify AlarmNet. Our deal with alarmnet is that if the subscriber signs the alarmnet indemnity then we don't have to indemnify too.
David
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Response
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You need to be careful about the third party vendors like alarm.com, alarmnet and the like. You are likely signing dealer agreements and agreeing to things you need to be aware of, often cover by insurance or get contracts signed by subscribers.
Your best protection is use the Standard Form Agreements, the All in One, because they provide the most contractual protection and that protection is extended to your subcontractors and third party vendors.
It's not too late to start protecting yourself. www.alarmcontracts.com
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warranty charge in DIY agreement
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Ken
Quick question, how do other companies that are similar to ours document or include warranties that we would charge the customer in addition to the monthly monitoring service? I see the "extended warranty" in the DIY nationwide contract on item 4(d)- but I do not see it where it is added to the monthly monitoring fee.
name withheld
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Response
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The nationwide DIY [and the nationwide PERS] do have an extended warranty option where the subscriber pays a monthly charge in addition to the monitoring charge. If provide for $5 a month, but it could be any number.
On the nationwide DIY and PERS you are sending self-installed equipment and monitoring that equipment, or providing a portal for monitoring. There isn't any on-site repair service. If equipment fails during the warranty period, typically one year, you have to replace it provided the subscriber complies with return obligations. After the warranty period you can offer an extended warranty. It's a good idea because a subscriber is not likely to continue paying for monitoring if the systems is inoperable.
You have to design the marketing and contract to fit that marketing. Maybe you don't want to charge anything for repair service while under monitoring contract; maybe you want to charge for new equipment. The nationwide form agreements are really customized and the price includes consultation and revision [after you buy the Standard Form Agreement].
Why is the nationwide form so much more expensive than the other Standard Form Agreements? Because we have to do a state by state search every time we sell a nationwide form to ensure that the contract is up to date. There are 50 states that have to be checked, and you need to be compliant in all states that you plan to sell equipment and enter into monitoring contracts.
If you can't afford the nationwide contract then you definite can't afford to enter the nationwide DIY or PERS market, because the cost of the contract will pale in comparison to your marketing budget. Call our Contract Administrator Eileen Wagda today and get started on the right path. Her number is 516 747 6700 x 312 and her email is EWadga@Kirschenbaumesq.com. You can order your customized up to date current Kirschenbaum TM contracts at www.alarmcontracts.com
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com