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DIY BUSINESS AND LIABILITY
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Ken,
    First I like to say that I read your articles every day;  great questions and the answers are to the point.  My question is that currently there is a company here in Canada advertising no installation technician, nor sales rep to your door.   The system is mailed to you and you install it;  there is no contract to sign. (I know no contract means no liability to the servicing company at all) but the problem is that the system is being monitored and dispatching is going to happen, with, I think,  more false alarms.  How is it possible for a security company like this get authorization to monitor homes or business and dispatch and we as an industry will pay the price when more false alarms go into the Police station.
Regards,
Joseph
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RESPONSE
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    You are referring to a DIY [Do It Yourself] installation that is monitored by a professional central station who dispatches to police and fire departments.  A company offering DIY with central station monitoring needs an alarm contract just as much as an alarm company performing a traditional sale, installation and monitoring service.  
    I am not sure that you mean by "no contract means no liability".  That could not be more wrong.  No contract means a hell of a lot more liability to the servicing company.  Sort of going to a gun fight with a rubber knief.  
    I don't know if the verdict is on whether DIY monitored accounts result in more false alarms.  While this may sound flippant, it's not easy to contribute to more false alarms [at least statistically] when cops think 99% are already false.  Maybe there will just be more of them beause there will be more alarm accounts.  But lot's of DIY accounts are also self monitored, or self monitored at same time as monitored by a central station.  This may cut down on false alarms.  Because DIY alarm systems are generally wireless and cellular or Internet based, and set up with communication to the subscriber's smartphone, alarm verification may also be more effective, cutting down on more false alarms.  
    As to how some companies are able to conduct business outside the box [and sometimes outside the law], that's something that is always going to be a problem, perhaps to a lesser extent if license enforcement gets diligent and serious.
    DIY sales should be by Contract and central station monitoring should also be by Agreement.  Because DIY sales and monitoring is generally done by Internet or telephone solicitation on a nationwide or countrywide if you're in Canada, we do have Standard Form Nationwide Agreements as well as specially prepared Limited Warranty language for the DIY sale without monitoring.  Contact our Contract Administrator Eileen Wagda at 516 747 6700 x 312 or EWagda@KirschenbaumEsq.com for information and assistance in ordering these forms.  
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