KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ******************************* Do you continue monitoring systems whose test signals stopped / More on removing wiring November 15, 2019 ************************ Do you continue monitoring systems whose test signals stopped ************************ Ken We have a few customers that their security system has stopped sending test signals to our central station. We are calling the customer and sending emails to advise them but they have not returned our calls or emails. Do we continue to bill and monitor the system? Just want to make sure from a liability stand point if there was an alarm signal and it doesn't reach the central station. They have the All in One contract signed which you provided us. Thanks Mauricio ************************ Response ************************ You have notified the subscriber that test signals are not being received. So far I don’t know that the subscriber has breached the All in One agreement, though a good guess would be that it has. Test signals just don’t stop on their own. The subscriber may have tampered with the system, disconnected the system or terminated the communication pathway used by the system. This would be a breach of the All in One agreement. The subscriber may not have named you as an additional insured, and that would be a breach of the All in One agreement. Non-payment would be another breach. But if payments are being made there is nothing wrong with continued invoicing and accepting payment from the subscriber. You should and did notify the subscriber of the test signal failures. You could get more aggressive about it, like sending someone to the premises or leaving a notice on the premises door or a message on the key pads. The concern is that a loss occurs and you are blamed for not providing a working alarm system. Negate that claim by the steps you have taken to notify the subscriber. Though you can continue to bill the subscriber might be better to default the subscriber and send to K&K for collection. Collect your 80% now and terminate service. I would continue the service until after we begin the collection process. *************************** More on removing wiring from article on November 4, 2019 *************************** Ken Remembering your article about ADT being stuck with cost of removing old / unused wires, here is how we deal with old wiring: "Company shall have no duty to repair or to monitor for signals from, and is authorized to disconnect from the System, and if required or requested may remove at Subscriber's additional expense, any components which are disconnected, unused and/or not compliant with applicable codes." Nick in California *********************** Response *********************** I don’t recall the article on ADT on this topic. I don’t think you have accomplished what you hoped in the above quoted provision. If requested you “may” remove? That seems optional on your part. At subscriber’s expense: When does the subscriber have to pay? And what if the components are still connected, being used and are compliant with codes, but the subscriber is not paying or the system for other reasons is not sending in its test signals? You only own wire if the system is leased. You should give yourself the option of removing or selling the wire to the subscriber once the contract terminates. Here’s another good idea. Get and use our Standard Form Agreements so your contract language is clear and unambiguous. ********************** To order up to date Standard Form Alarm / Security / Fire and related forms, click here:www.alarmcontracts.com ************************* CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
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