Asset Protection and Security Management Handbook

439

The Civil Law

Limitations of Liability.

To protect themselves against overwhelming lia-

bilities and to ensure continued availability of insurance, security product

and service vendors usually rely upon some specific language in the con-

tract, service agreement, or purchase memorandum to limit their liability.

For example, in the typical central-station alarm contract will be found a

provision like the following.

“It is understood that the contractor [alarm company] is not an insurer,

that insurance, if any, shall be obtained by the subscriber [the user of

the alarm service] and that the amounts payable to the contractor

hereunder [the cost of the alarm services] are based upon the value of

the services and the scope of liability as herein set ...