CSI Magazine » Business

ULC and You

CSI Magazine — Tue, 02 Feb 2016 19:12:31 +0000

There seems to be considerable confusion as to the issuance of ULC Certificates, particularly for Fire Alarm monitoring. We will attempt here, to clarify things and to help dealers understand their obligations and rights, as well as those of the monitoring station.

Underwriters’ Laboratories of Canada (ULC) is a “Standards” organization that performs testing and establishes guidelines that help insurance companies and “Authorities Having Jurisdiction” (AHJ) to determine the relative performance expectations of an alarm system based on its design, the quality of the installation, the capabilities of the installing company, the method and type of signal transmission, the construction and performance protocols of the monitoring station etc.

Dealers must understand. It is NOT your monitoring station that sets the rules. ULC is the sole arbiter as to what can be done, how it must be done, and by whom in order to permit the issuance of an ULC Certificate. Furthermore, only ULC can issue a certificate, and they will do so only after their entire list of criteria has been met.

Large alarm companies that do their own installations and operate their own monitoring stations can, upon meeting ULC’s requirements, have certificates issued in their company’s name. Alarm companies that use the services of a wholesale third-party monitoring company can, upon meeting the requirements, have a “Shared Listing” certificate issued. This Shared Certificate will be issued in the names of both the installing company and the monitoring station.

In short, in order for a certificate to be issued, the following concerns must be addressed and met:

INSTALLATION: All equipment must be ULC-approved and installed according to ULC specifications
INSTALLATION COMPANY: Must be ULC-listed; must have a maintenance contract in effect with the customer; must have a monitoring contract in effect with the customer and must have a monitoring contract in effect with a ULC-listed monitoring station; must pay an annual fee to ULC to maintain their listing and undergo an annual inspection by ULC of certificated systems; must pay an additional fee for each certificate issued.
SIGNAL TRANSMISSION: All signals must be sent using ULC-listed equipment and protocols. The installation of all signal transmission equipment must be according to ULC specifications.
MONITORING STATION: Must be ULC-listed. In order for this to happen, the station must meet certain design and construction criteria; must agree to and use established ULC protocols in handling of data and alarm signals; must have passed a rigorous initial inspection by ULC engineers; must maintain certain records as required by ULC; must undergo annual inspections and examinations by ULC; must pay an annual fee to ULC for its listing and to cover the costs associated with the annual inspection; must pay an additional fee for each certificate that is issued. Of course there must also be a satisfactory contract in place between the monitoring station and the installation company.

The procedure for an alarm installation company to obtain an ULC listing involves the completion of at least three projects according to ULC standards and specifications, then applying to ULC. Upon receipt of your application ULC will contact you and will provide a quotation for the cost of obtaining the listing. This quotation will include any travel, meal and accommodation costs associated with their inspectors visit (if applicable). Upon your acceptance of their quotation, arrangements will be made for an inspector to attend at each of the three initial projects. The visit to each project will entail an examination of the installation to ensure it is done to ULC standards and specifications, and a full test of all potential signals to the monitoring station. Reports will also be requested from the monitoring station.

As you can see, the decision to become an ULC-listed installation company is not to be taken lightly. There are costs involved, both initially and ongoing. Those costs however, can and should be recovered from your subscribers in the form of increased monthly monitoring fees that reflect the cost of providing ULC service.

This article is intended as a simple synopsis of what is required and is not to be interpreted as gospel. To learn more about the procedures and techniques required to become listed, please visit ULC’s website at www.canada.ul.com

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What You Should Expect from Your Monitoring Station

CSI Magazine — Mon, 01 Jun 2015 16:26:48 +0000

The relationship between an alarm installation/service company and its monitoring station is an interesting and very important one that bears looking at.

Once an alarm system is installed, programmed and tested, and the subscriber is properly trained on the use of the system, your subscriber is likely to have much more regular contact with the monitoring station than with your office. It is therefore essential for you to have confidence that your business principles are being properly adhered to by monitoring station personnel.

You are the face of your company, and you are the one who may bump into the customer as you walk down the street or visit the arena in your local community. You are also the one that your customers are counting on to deliver to their expectations. It will be your feet that are held to the fire when things go awry, regardless the real cause of any perceived failure.

Just as you will be held responsible for the performance and behaviour of your employees, so too will you be required to accept accountability for the actions (or lack thereof) of your monitoring station.

So selecting a station to perform the monitoring service is no small matter! It is critical to the success and reputation of your business. Simply comparing costs without looking at reliability, redundancy, reputation, and other factors is just not good enough.

Selecting a station to perform the monitoring service is no small matter. It is critical to the success and reputation of your business. Simply comparing costs without looking at reliability, redundancy, reputation, and other factors is just not good enough.

Here are some of the things we think should be taken into consideration when selecting a monitoring station for your business:

Where is the actual monitoring being done?
As tempting as it might be to have your monitoring station in your home town, or even around the corner, it can also work to your disadvantage. A natural disaster or a major telephone service outage in your area that affects your customers might also affect the monitoring station, knocking it off line and unable to respond, even to those customers who have GSM backups in place.
How many stations does your prospective supplier operate?
A company with several different locations in several geographical areas offers redundancy opportunities that a single location can simply never hope to duplicate.
When a company operates more than one station, are all stations inter-connected at all times?
What types of signals is the station willing to receive on your behalf?
Many companies, particularly those who also own retail accounts of their own, refuse to release new technologies to their dealers, in the hope that their own sales department will have an advantage in the marketplace.
When a company operates more than one station, how many of the stations are true monitoring stations and how many are simply data centers that receive signals from the “mother ship”?
Is there a ULC-listing for any or all of the stations?
Although you may not be contemplating a ULC-listing for your own company, such a listing is a good indicator that the station takes it business seriously and is prepared to have a qualified third party “expert” perform an inspection to ensure that high standards are being met or exceeded.
If possible, visit the station to see for yourself both the technology and the people you will be dealing with.
When your customers call the station what name will they hear from the operator?
Similarly, when the station calls your customer, what name will your customer hear? And what will the call display on your customer’s phone say?
Ask for, and read carefully, a copy of the monitoring station’s dealer agreement.
Does it specify a “right of first refusal” for the purchase of your accounts if you choose to sell in the future? Ask yourself, “Why would a company want that clause if they claim to not do retail?” Remember – if they’ll buy your accounts they will also purchase the accounts of your friendly neighbourhood competitor – and that could lead to a significant conflict of interest.

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Subscriber Agreements

CSI Magazine — Tue, 26 May 2015 09:00:50 +0000

Subscriber Agreements Why? And What’s Important?

Alarm companies – particularly those just starting out in the industry – often have problems coming up with workable, “fair and justifiable contracts to define the relationship between them and their subscribers.”

Many express fear regarding the “legalese” that is involved with most contracts, and see the paperwork as just another impediment that could get in the way of closing the deal. It does not need to be so.

In the 21st century, many Canadians are taking a lead from our friends in the USA and are showing a willingness to be more litigious than in the past. Discerning alarm company owners and managers will understand the need to protect the assets of the company while continuing to offer good, reasonably priced service that will offer a perception of value that is consistent with the customer’s expectations.

CSI Magazine is not in the legal profession. We do not wish our thoughts to be interpreted as legal advice regarding the specific wording of your Subscriber Agreements. But we have come across many situations where dealers (some of them quite large by Canadian standards) are often very proud of the fact that they do not require their customers to sign any contract at all – just a verbal agreement or a form of purchase order that covers the costs involved and very little more.

We suggest that is not enough!

The following is a list of clauses that should be included, but there are probably others you could consider. We suggest that you do your best to get your hands on a typical agreement from one of the larger national or multi-national companies.

You should also make yourself aware of the consumer protection laws in your area of operation as well as any police and/or fire response by-laws.

Finally, and most important. FIND A GOOD LAWYER and seek counsel before finalizing your Subscriber Agreement.

What should a good Subscriber Agreement contain? Here are some suggestions:

The Legal Name of your company, along with its address, telephone number(s) should be clearly defined.
The Legal Name of the customer, complete with its legal address, telephone number are required. Moe’s Diner is not good enough. Is there a registered company behind it? Is it perhaps 1234 Canada Inc. that owns Moe’s Diner? In such instances, Moe’s Diner is not a legal entity – and there may be no recourse for you to take legal action, should they fail to pay you for your services. If there is no corporate identity associated with the site, you may be better off to make out the contract to Moe Jones, operating as Moe’s Diner. Be sure to obtain the legal address of Moe Jones as well.
We suggest that if the Agreement is for monitoring of a dwelling or home on behalf of a married (or even common-law) couple, the names of both parties should be shown and that you should use and/or in the name, such as Susan and/or John Smith. In this 21st century, when many marriages fail to last as long as your agreement, you should be sure to be able to accept instruction from either party. If the agreement has been made out to John Smith only, and he moves out of the home, you may be in a difficult spot if Susan calls and asks for John’s name to be removed from the list of authorized persons or contacts.
The agreement should have a beginning and an end! When is the installation to be started? When will monitoring (or other monthly fees) start? What is the duration of the agreement? When will the customer’s financial commitment to you end? When will your commitments to the customer no longer be required?
Automatic renewal of the agreement is very desirable. We suggest a clause that reads something like, “This Agreement will automatically renew for periods of one year unless either party notifies the other in writing at least 90 days prior to the expiration date of this Agreement or any renewal thereof, of their intention to terminate the Agreement.”
There should be a NO LIABILITY clause that brings to the attention of the subscriber, that you are not an insurer. They should continue to have insurance coverage, and that the services rendered by you and your monitoring company have no relation to the value of the property and its contents. This clause should deny any liability on your part.
Furthermore, there should be a LIMIT OF LIABILITY clause that says, in effect, “even though we accept no liability whatsoever, if a court finds that we are, in fact, liable, the limit of liability shall be X Dollars”. You and your lawyer should decide what a fair limit is.
The amount of money to be charged for the monitoring and/or maintenance should be clearly spelled out, as should the method of payment.
We think you should consider making sure that all recurring monthly fees are payable by Automatic Bank Account Withdrawal (Pre-Authorized Payment Plan [PAPP]). History has shown that attrition rates for those accounts that pay by PAPP are far lower than those who pay monthly, quarterly or annually by cheque upon receipt of an invoice.
There should be a clause that stipulates that you are not responsible for the failure of others to perform according to plan. The actions (or lack thereof) of suppliers such as telephone companies, GSM providers, police responders, fire departments etc. are beyond your control and you should stipulate that in your agreement.
There should be a clause that specifies that it is the subscriber’s responsibility to test the system regularly to be sure it is working properly and transmitting to the monitoring station in the desired fashion. This is especially true as more and more homeowners opt to eliminate their regular telephone service and replace it with cellular and/or VOIP service.

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