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THE

ISSUE

NFPA EXPO SHOW EDITION

MARKET Latest Data & Opportunities

TECHNOLOGY Innovations Abound

SALES Leverage Compliance & Risk Reduction

TRENDS CO Detection Demand Rises

« ISC WEST 2012 WRAP-UP «

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CONTENTS

May 2012 Vol. 34, No. 5

SSI’s annual Fire Market Report offers the latest statistics and delves into false alarm activity, residential fire sprinklers, among other subject matter pinpointing key trends and prospects in the marketplace. — SEE PAGE 32

SPECIAL FIRE SECTION 32 ADVANCING LIFE-SAFETY IN THE HOME

A look at residential fire sprinkler and false fire alarm activity trends offer installing system contractors insights on the latest developments driving the marketplace. SSI’s annual report also provides legislative and code updates for carbon monoxide detection. by RODNEY BOSCH

40 ADVANCES SPARK NEW AGE OF FIRE SAFETY

While the controlled use of fire predates written history, it has taken humans until modern times to nearly master its deadly capabilities. Thankfully today, an array of detection technologies has drastically reduced the threat to lives and property as the result of fire, smoke and gases. Get up to speed on the latest fire safety innovations. by RON OUIMETTE

COLUMNS 8 BETWEEN US PROS WITH SCOTT GOLDFINE

Here are 10 insights on how to grow your video profits.

10 ADVISORY BOARD FORUM WITH SANDRA JONES

How security is being sold, accepted and budgeted as a management tool.

22 CONVERGENCE CHANNEL WITH PAUL BOUCHERLE When creating a strategic selling program for national accounts makes sense.

26 TECH TALK WITH BOB DOLPH

Why government regulations can sometimes help simplify security systems.

30 MONITORING MATTERS WITH KEVIN LEHAN

Adding A/V systems to your portfolio can help fend off new competitors.

46 FIRE SALE

End users typically view fire/life-safety systems as expenditures they would prefer to avoid rather than an investment paying dividends across the organization. Open C-level decision makers’ eyes to show them how today’s solutions not only protect people, assets and facilities, but also ensure compliance, mitigate risk and lend peace of mind. by MIKE DOWLING

70 THE BIG IDEA WITH RON DAVIS

You may have your ears to the ground, but do you keep an open mind?

72 LEGAL BRIEFING WITH KEN KIRSCHENBAUM

Explaining the importance of errors and omission insurance.

52 PROTECTING CRITICAL INFRASTRUCTURE FROM FIRE PERIL

After years of struggling with its outdated fire alarm system, a 450,000-square-foot facility containing critical infrastructure and telecom equipment required an upgrade. A local integrator helped deploy an advanced, five-node fire protection system with expandable, costeffective networking capabilities. by THE EDITORS OF SECURITY SALES & INTEGRATION

DEPARTMENTS 4 13 64 66 68

SECURITY EXCHANGE INDUSTRY PULSE BUILDING YOUR BUSINESS AD INDEX MARKETPLACE

58 FIRE SIDE CHAT: STOPPING A SILENT KILLER

Carbon monoxide (CO) detection is increasingly being mandated by more and more localities, meaning safer buildings and growing opportunities for installing security and fire systems providers. Learn important definitions and monitoring practices. by SHANE CLARY

THE H

ON THE COVER

Cover illustration by

60 ESSENTIAL FIRE/LIFE-SAFETY PRODUCTS New solutions to meet your market needs.

AJAY PECKHAM

ISSUE IS SU UE

NFP NF N NFPA FP FPA FP PA A EX E EXP EXPO XPO XP PO SH SH SHOW HO HOW OW OW ED ED EDITION DIIT ITI TIO T IO ION IO ON N

MARKET Latest Data & Opportunities

TECHNOLOGY Innovations Abound

SALES Leverage Compliance & Risk Reduction

TRENDS CO Detection Demand Rises

PRODUCTS Systems That Meet Any Need

« ISC « SC C WEST 2012 012 12 W WR RAP-UP AP-UP AP P

securitysales.com

May 2012 Vol. 34, No. 5

/ SECURITYSALES.COM / MAY 2012

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Security Exchange Web Watch

Have You Checked Out … securitysales.com

SECURITY SPEAKING PODCASTS / securitysales.com/podcasts.aspx

Wh can you h Where hear th the h honest, t off-the-cuff comments and keen insights from the electronic security industry’s most highly respected and successful executives? In the Podcasts section of SSI’s Web

site where you will find dozens of installments of the recently launched “Security Speaking” program. Hosted by Editor-inChief Scott Goldfine, each week features a frank discussion covering the trends, issues, opportunities, challenges, technologies and more affecting today’s electronic security industry professional. Recent editions include ADS Security President and COO John Cerasuolo discussing portfolio expansion into new technologies/services such as managed access, remote video,

Publisher Peggy Onstad: (949) 305-5541

PERs and identify theft; SafeMart CEO Chris Johnson explaining where his direct sales model fits into the industry picture; Tammee Thompson, vice president and general manager of Johnson Controls’ Global Security and Fire unit, details JCI’s holistic, total systems approach; and Vivint CEO Todd Pedersen shares his aggressive vision to attain residential market share. That’s just a glimpse into the wealth of enlightening and entertaining listening to be had via “Security Speaking.”

SSI Spotlights Sales & Marketing Best Practices at 17th Annual SAMMY Awards

2 3

Devcon Security Names Hafen as CEO, Replaces Ginsburg Customer Complaints Force Pinnacle to Reform Business Practices

4 5

Managing Editor Rodney Bosch: (310) 533-2426 Associate Editor Ashley Willis: (310) 533-2419 Contributing Writers Paul Boucherle, Shane Clary, Ron Davis, Bob Dolph, Peter Giacalone, Jay Hauhn, Ken Kirschenbaum, Bob Wimmer, Jeffrey Zwirn Art Director Ajay Peckham Sr. Production Manager Sarah Paredes: (310) 533-2497 Administrative Assistant Abril Calderon: (310) 533-2413 Audience Marketing Manager Katie Fillingame Staff E-mail addresses are firstname.lastname@ securitysales.com (e.g. scott.goldfine@securitysales.com) Contributors‘ E-mail addresses are secsales@bobit.com.

WEB-O-METER 5 most-viewed news stories during March

Editor-in-Chief Scott Goldfine: (704) 663-7125 114 Chatworth Lane Mooresville, NC 28117 Fax: (704) 663-7145

Indicted Alarm Brokers’ Contracts Up for Sale Startup Systems Integration Firm Acquires SecureNet

HOW TO CONTACT ADVERTISING & MARKETING EAST WEST Dynise Plaisance Peggy Onstad 3520 Challenger St. 3520 Challenger St. Torrance, CA 90503 Torrance, CA 90503 (760) 519-5541 (949) 305-5541 Fax: (310) 533-2502 Fax: (949) 305-5549 ADVERTISING SALES TERRITORIES

SECURITY SCANNER® WEB POLL

32%

1) Technical 2) Sales 3) Management

18%

1) Sales 2) Management 3) Technical

1) Technical 2) Management 3) Sales

14%

1) Management 2) Sales 3) Technical

1) Management 2) Technical 3) Sales

9% 1) Sales 2) Technical 3) Management

Looking at management, sales and technical expertise, how would you rank your company’s most pressing training/education needs? SSI’s research projects often indicate finding trained technicians is a leading industry challenge and the results of March’s Security Scanner Web poll bears that out. Technical was cited by a commanding margin as the most pressing training/educational need, and it also tied for the second-leading response. Sales skills and knowledge was next in line as it was identified as No. 2 in the top answer choice and first in the second response. It is worth considering that the fact that most respondents were likely managers themselves and therefore potentially less likely to see their own shortcomings. Log onto securitysales.com to view SSI’s Security Scanner archives as well as cast your vote for the May poll: What does ‘the cloud’ mean to me and/or my company? BLOGS www.securitysales.com/blog

Some of the things we’re talking about … Why Most Successful Managers Support Mentoring Addressing an Alarm Company’s Name Change in Contracts How Women Can Advance in the Security Industry Saving on Support Software — Redux Part 1 Should Companies Include Regular Alarm Testing in a Service Contract?

FREE INFO www.securitysales.com/freeinfo Get free info about companies and products featured in this issue of SECURITY SALES & INTEGRATION. eCONTROL PANEL For the latest news as it happens, sign up for SSI’s eControl Panel at www.securitysales.com

Classified-MarketPlace Ads Peggy Onstad: (949) 305-5541 EDITORIAL ADVISORY BOARD Ed Bonifas Alarm Detection Systems, Aurora, Ill. Bill Bozeman PSA Security Network, Westminster, Colo. Shandon Harbour SDA Security, San Diego Jim Henry Henry Bros. Electronics, Fair Lawn, N.J. Michael Jagger Provident Security, Vancouver, British Columbia, Canada John Jennings Safeguard Security and Communications, Scottsdale, Ariz. Sandy Jones Sandra Jones and Co., Chardon, Ohio J. Matthew Ladd The Protection Bureau, Exton, Pa. Mike Miller Moon Security Service, Pasco, Wash. Joe Nuccio ASG Security, Beltsville, Md. Alan L. Pepper Mitchell, Silberberg & Knupp LLP, Los Angeles Eric Yunag Dakota Security Systems, Sioux Falls, S.D. HOW TO GET YOUR NEWS TO US E-mail: secsales@bobit.com Mail: 3520 Challenger St., Torrance, CA 90503 Fax: (310) 533-2502 FOR SUBSCRIPTION INQUIRIES (888) 239-2455 BOBIT BUSINESS MEDIA Edward J. Bobit, Chairman Ty F. Bobit, President & CEO

Printed in USA

Engage in the conversation!

/ SECURITYSALES.COM / MAY 2012

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New Caveat: Seller Beware As the seller of a company (in 2007), I wanted to respond to Ken Kirschenbaum’s Laying Down the Law blog, “What Should Sellers Look for in an Asset Purchase Agreement?” (securitysales.com/ layingdownthelaw_07112011). I had my attorney write up the contract. After thousands of dollars and many meetings we had an agreement both parties agreed to.

After three years, the buyer stopped paying. My attorney said even though we had an “iron-clad” agreement I might not get my money. They wanted a $20,000 retainer to litigate. Long story short, even with an agreement you will not have any recourse to collect if the buyer does not pay. At best, you could win in court and still not get paid. Meanwhile, the attorneys get paid up front. Jon Boyce

Getting Ahead in the ‘Cloud’ Regarding Peter Giacalone’s January 2012 Central Station Corner blog (“Gaining an Appreciation for Cloud-Based Monitoring” at securitysales.com/blog), this isn’t a pipedream. I have seen when smaller centers cannot afford a world-class environment so instead use a hosted and partitioned platform. When a smaller center really looks at it objectively, it’s hard to justify all it really takes to run a top-notch facility, especially a contract center where you have to support every kind of technology out there. In the hosted application this allows the smaller center to have all the bells and whistles, and also allows the larger entity to have a better economy of scale. And it’s not limited to just monitoring. Back-office, technical support, remote programming, service dispatching, billing and collections all can be done as a hosted or contracted model. Morgan Hertel

Sharing Troubleshooting Tips The Fire Side Chat “Finding Faults in Fire Systems” [securitysales.com/ fireside09012010] provides good troubleshooting. Direct shorts to ground are usually easier to isolate than a ground fault on the device side of an addressable module. One of the hardest to locate is a faulty device that only goes to ground when power is applied. If you have to locate a fault without help, the use of a tone generator and pick-up can be very effective for following the correct loop on a multiloop addressable or conventional fire system. Also, when you attach a tone generator to an unpowered ground faulted wire (direct short to ground) and a known ground the short circuit will shunt the tone. I have located ground faults by disconnecting the grounded circuit at the panel and connecting the tone generator wires to the grounded loop wire and a known ground. When the devices are bumped or removed and the fault clears, the ground will open and you will hear the tone on the pick-up at the device. You can do these loop-tracing and fault-seeking operations simultaneously by using a combination of slow pulse and fast pulse tone generators on the faulted and normal conductors. Splitting the loop definitely helps pinpoint the problem. www.securitysales.com/freeinfo/15114

J. Dietzel

/ SECURITYSALES.COM / MAY 2012

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10 GUIDEPOSTS TO GREATER VIDEO PROFITS Between Us Pros

by Scott Goldfine

Editor-in-Chief Scott Goldfine has spent more than 13 years with SECURITY SALES & INTEGRATION.

scott.goldfine@securitysales.com

hile the transition from analog to IP video has put more pep in the step of most systems integrators it has not been without its stumbling blocks. I am speaking of opportunities like system sales, upgrades and maintenance versus challenges like learning new technologies, interfacing with IT departments and contending with an ever-widening range of competitors. Solving the latter to maximize the huge upside of the former took center stage during the recent presentation I moderated, “The New Video Surveillance Business: How to Generate Profit on Servers, Storage & Video Management.” The session — held at both ISC West in Las Vegas and PSATEC in Denver — featured Bob Banerjee, senior director of training & development for NICE Systems; Tim Brooks, regional sales manager for PSA Security Network; and Chris Peckham, senior vice president and CTO for Kratos | HBE. Following is a top 10 summary, in random order, of takeaways I encourage you to incorporate into your business to help you master the security industry’s most prominent sector (20% of revenues by type of business, SSI’s 2011 Installation Business Report). 1. Be an advisor — Approach your client’s business as if it were your own by serving as an unbiased consultant and assessing all the needs, resources, limitations and nuances to recommend what is truly in that enterprise’s best interests; become a trusted partner. 2. Speak IT — With security solutions now residing on networks, it is imperative to both understand the technology as well as the language and needs of end-user IT managers who are increasingly influencing decisions that had been the domain of security directors or facility personnel. 3. Mitigate risk — Find out what threats your client’s management is most concerned about and leverage the power of IP video surveillance to eliminate or reduce those factors; establish a safer environment and deliver peace of mind. 4. Stress efficiencies — Win over C-level decision makers by appealing to bottom-line sensibilities and highlighting the many ways networked video can be extended to other areas and operations beyond security; this helps justify total cost of ownership (TCO) and return on investment (ROI) metrics, and builds a “sticky,” long-term relationship with the customer. 5. Tout technology — Networked video is a gateway that opens the way to advanced capabilities via products and software like megapixel cameras, analytics/forensics, mobile device/remote viewing, edge processing, off-site storage, cloudbased services (VSaaS), and more.

Win over C-level decision makers by appealing to bottomline sensibilities with the many ways networked video can extend to operations beyond security; this helps justify TCO and ROI metrics, and builds “sticky,” longterm relationships. 6. Extend the platform — Standards such as those from ONVIF, PSIA and SIA and open protocols are facilitating seamless and extensive integration of surveillance with access control, intrusion/fire detection, HVAC/building controls, and more; video management systems (VMS) and physical security information management (PSIM) are tying it together for greater situational awareness. 7. Ensure profitability — Sell solutions and recurring revenue services rather than products (smarts, not parts) marked by value-adds wherever you can create them with specialized expertise a leading differentiator, along with the tactic of blended margins in which higher margin goods are coupled with lower margin items to offset commoditization; also deploy maintenance contracts and look out for ancillary offerings. 8. Be a facilitator — Help clients easily migrate to networked video incrementally with analog-to-digital encoders, DVRs to NVRs, cameras with both analog and digital outputs, standard IP cameras to megapixel, behind-the-scenes command center changes, etc. 9. Be the wiser — Knowledge is power and being educated on leading-edge video technologies is essential, but equally critical is being able to train end users to properly implement these solutions. 10. Manage expectations — Despite the amazing results networked video can achieve, end users are not always realistic (thank, Hollywood!), so underpromise and overdeliver is the maxim here; clear and frequent communication is key.

/ SECURITYSALES.COM / MAY 2012

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4 TRENDS SET TO TRANSFORM SECURITY PROPOSITION Advisory Board Forum

by Sandra Jones

Sandra Jones is principal of Sandra Jones and Co. (sjandco.com), a security industry resource and consulting firm.

sandy@sjandco.com

istorically, security was often undervalued by end users as it was an expenditure that was rarely needed or used. There was no compelling argument to invest in security, but that is finally changing. I’m not sure exactly when it will happen, but I think we are rapidly approaching a tipping point in the security industry. Security is finally being sold, accepted and budgeted as a management tool. And like any good business software or communications technology, it is an investment management values as it allows them to focus on their core business and bottom line.

Access control has moved to identity management and is still evolving toward payment solutions and management. Video has shifted from just providing evidence to business and information management. Guarding has shifted to visitor and employee management; distribution to material management; intercom to emergency management; and, well you get the idea. The wheels are fully in motion to make the transition. Not only has the security market moved to adding value to customers’ organizations but also to refining their own busi-

Not only has the security market moved to adding value to customers’ organizations but also to refining their own businesses. Security company owners have become better managers focused on profitability and value creation.

nesses. Security company owners have become better managers focused on profitability and value creation. While they still have to perform magic by blending technologies, they now also devote more of their time to refining business plans to reduce attrition, create unique service offerings and make their businesses more resilient to the peaks and valleys of an uncertain economy. Nowhere is this more evident than in some of the transactions, due diligence and research we have recently conducted. Here are four key trends:

No 1 Security is no longer a grudge purchase but an investment end users are willing to make for better business profits and customer service.

No 2 Traditional systems integrators are learning and leveraging IT, enabling them to shift to adding several forms of recurring revenue. An increasing percentage of their businesses are no longer being measured in EBITA but in RMR. This improves cash flow and operations, plus increases their valuation.

No 3 The channel is partnering to increase profits, create efficiencies and deliver better results to the end user. Not all activity in the industry is through transactions; customers are getting better results through suppliers partnering with one another to provide a truly integrated vs. disparate system.

No 4 Security is an IT business. In 2010, more than 60% of the largest traditional systems integrators incorporated IP technology. If you attended ISC West, you know that traditional distributors and early entrants like ScanSource and Anixter have been joined by CSC Supply and Ingram Micro. While there is change at the technology, transaction and channel level, nowhere is it as profound as at the customer level. I recently visited with Microsoft CSO Mike Howard and his technology-savvy team. They are the new breed of security managers because in addition to security their responsibility is focused on their organization’s bottom line. Mike and his team have leveraged the cloud and partners to provide efficiency and safety for his organization and staff all over the globe. Their Global Security Operation Centers (GSOCs) are as advanced and efficient as any ops center I’ve seen. The transformation of the industry is far from over because strategic buyers and private equity firms will be seeking more IT, guard and communication companies for transactions of scale. Not everyone is changing or has to, but for those of you who are or aspire to be industry leaders, we have finally made security an operations and information management business.

/ SECURITYSALES.COM / MAY 2012

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Industry Pulse

IN DEPTH

INDUSTRY’S MARCH TO THE CLOUD MANIFESTS AT ISC WEST Executive Council; and Bill Taylor, vice chairman of the Security Industry Association (SIA). “You have to introduce new revenue streams, not only security and threat types, but turn the camera into data collection units for more than just security,” said Taylor, who moderated the panel. No longer are physical security applications solely about helping the end customer “catch the bad guy,” he said. The marketplace has evolved where service organizations can maximize returns by providing “good guy applications that help business.” Among other sessions geared toward marketplace opportunities, attendees to the Siemens Security Leadership Summit were presented with techniques to improve their business leadership skills. Included

turnout was international, with security professionals from Canada representing the largest amount of participation, followed by Mexico, Brazil, Korea and Australia. Attendees filled the show floor aisles throughout the conference to peruse more than 10,000 products from 900-plus exhibiting companies. Each year ISC West serves as a platform for companies to announce organizational maneuverings, product announcements, industry

ISC West 2012 attracted throngs of industry stakeholders, who perused thousands of products and services from more than 900 exhibiting companies.

Photo: Courtesy Exacq Technologies

LAS VEGAS — For a good many attendees to ISC West 2012 — integrators, consultants, suppliers and end users alike — you might say they had their collective head in the cloud. As industry stakeholders continue to break away from a legacy-centric mindset, an increasing emphasis is being placed on physical security systems that deliver cost savings and create newfound value by leveraging the cloud. This burgeoning trend was repeated throughout the conference, held here March 28-30, during industry panels, educational sessions and by numerous marketers across the show floor. As explained at the State of the Industry panel, applications leading the way in this new valueadd realm are video storage as a service (VSaaS), as well as hosted video management systems (VMS), which enhance solutions designed for end users with large, multisite footprints. ID credentials stored in the cloud to better facilitate managed access control services is yet another example. Panelist Gary Wong, a senior analyst at IMS Research, told a packed audience that VSaaS revenues are projected to surpass $1 billion by 2016. Much of the growth is being fueled by increased deployment of networked cameras. The great opportunity for the industry is to use these IP-based systems, coupled with analytics, as ROIgenerating business intelligence tools, according to the panelists, which included Mike Faddis, group program manager at Microsoft Global Security; Jason Bohrer, senior vice president of managed services at HID Global; Francis D’Addario, emeritus faculty leader of the Security

was a keynote address by Gen. Stanley McChrystal, former commander of U.S. and international forces in Afghanistan. To be an effective leader, McChrystal said it is critical not to be averse to change. Among other insights, McChrystal said top managers should always make a point of appropriately acknowledging their workers’ ideas and efforts. Not doing so could potentially stifle their growth and willingness to share ideas that ultimately could help the business prosper. “How many times have you written a great E-mail to your boss and you mentioned the problem, presented a background solution and offered your recommendation?” he said. “You probably had someone else read it and you felt great about it. You hit send, and what do you get back? Just, ‘OK.’ ” ISC West producer Reed Exhibitions announced that attendance to this year’s conference increased 10% over the prior year. Also, more than 10% of the

prognoses, among other goings on. SSI editors were in the thick of it all. See page 14 for more ISC West news. Also, check out securitysales.com/ ISCWest2012 for complete coverage, including podcasts, photos and more. SSI also hosted its annual SAMMY Awards and the SSI Hall of Fame induction ceremony on the eve of ISC. Be sure to see which installing security contractors took home sales & marketing, business and installation honors, with detailed coverage to come in the June and July issues.

MAY 2012 / SECURITYSALES.COM /

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Industry Pulse

ISC WEST ROUNDUP

Axis Introduces ‘Smallest Video Recorder’ at ISC West LAS VEGAS — Axis Communications unveiled several new products at ISC West, including the Axis Companion Camera system, which the company billed as the industry’s smallest video recorder. Despite IP video’s significant market penetration, analog video still represents roughly 70% of the video surveillance market, according to Axis General Manager Fredrik Nilsson. With that statistic in mind, Axis engineers created the Companion system, which allows security dealers to install a four-camera system for less than $1,000. “More than half of the market, such as retail stores like 7-Eleven, uses smaller systems,” Nilsson said. “The reason for that is there is a perceived cost advantage and sometimes it is a real cost advantage. There is also the ease of the install and the ease of use for those systems.” The new camera system is built around edge storage; all recording is done on a SD card in each camera, thereby eliminating the need for a centralized recording unit. “Instead of creating a smaller, cheaper encoder, our engineers actually got rid of the recorder in the system,” Nilsson said.

Biometrics Provider Honored for ‘Best New Product’

A large group of dancers performed during ISC West to promote Mission 500’s new theme song, “One Child At A Time.”

Mission 500 Song Raises Awareness for Children in Crisis

Mission 500, the nonprofit security industry initiative to help children in crisis, premiered its newly created theme song, “One Child at a Time,” in front of thousands of industry professionals at ISC West. To showcase the upbeat song, exhibitors and attendees volunteering for Mission 500 joined Las Vegas dancers to stage choreographed presentations “flash mob”-style on the show floor and elsewhere. The track was donated, written and produced by Boca Raton musician Rick Krive, and performed by Tomey Sellars. “The song is a memorable way to remind people of the importance of giving to this lifesaving organization, and … to expand our reach to the industry and help us ultimately save lives one child at a time,” said George Fletcher, a co-founder of Mission 500.

FIND IT ON THE WEB You can listen to the song at securitysales.com/Mission500song.

MorphoTrak Inc. received top honors at the New Product Showcase (NPS) hosted by the Security Industry Association (SIA) at ISC West, earning the Best New Product Award. The firm won for its MorphoAccess VP product, which is a physical access control reader that integrates multimodal finger vein and fingerprint biometric technology into a single sensor and device. The device is said to reduce installation costs, while increasing security levels. The Siqura BC620WDR from TKH Security Solutions received the Judges’ Choice Award. The network box camera is credited with providing superior performance and wide dynamic range (WDR) under all lighting conditions. More than 70 products and services were entered into this year’s NPS. There were 21 categories represented during the ceremony. The judges also presented five honorable mention awards. To view the entire list of NPS winners, visit securitysales.com/NPS2012.

ADT COMMERCIAL UNIT TO REBRAND AS TYCO INTEGRATED SECURITY Tyco Int’l will retire the ADT brand as part of its North America commercial security business and instead rename it Tyco Integrated Security. The name change will formally begin June 30. Tyco announced the name change on the first day at ISC West as the global conglomerate continues to reorganize into three publicly traded companies. The North American residential security business will continue to operate as ADT. The commercial and residential security

business will also retain the ADT brand in overseas markets. “Commercial enterprises have different, more complex needs from homes and small businesses, and this name change, from ADT North America Commercial Security to Tyco Integrated Security, is representative of our continued focus and commitment to the commercial market,” said Brian McDonald, COO, Tyco Fire & Security. The rebranded company will continue

to invest in solutions and services, leveraging the global resources of the new standalone Fire & Security company that will result from the separation, according to Tyco. The reorganization is expected to be completed by the end of September. Following the split, the three independent companies will include the flow control business; ADT Residential; and the commercial fire and security business.

/ SECURITYSALES.COM / MAY 2012

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Industry Pulse

HOT SEAT

SCHNEIDER ELECTRIC STRATEGIES AND MARKET MANEUVERINGS

[ left ]

SAM BELBINA Vice President, Security & Video Schneider Electric [ right ]

KEVIN McCAUGHEY Vice President, Security Solutions Schneider Electric

SSI caught up with a pair of Schneider Electric executives at ISC West to discuss the firm’s technology offerings, including the Pelco video brand, as well as its topmost objectives in the electronic security marketplace. Joining the conversation is Sam Belbina, who serves as vice president, Security & Video; and Kevin McCaughey, vice president, Security Solutions. What is the status of analog? Is it still growing incrementally or is it tapering off quite a bit? Belbina: We’re seeing it as a tapering, but for us the long-term strategy is really to become an IP company. That’s what we’ve been doing for the last few years. I’m pleased to say that this year we’re probably going to see Pelco shifting more toward IP than analog in terms of percentage. The analog is tapering overall in the marketplace. For us it’s flat. It’s not declining, which is good news for us, but it’s also not growing because that’s part of our strategy. As far as the growth for IP, it’s been pretty phenomenal for us. How are Schneider Electric’s many business units brought together to the

advantage of security integrators? McCaughey: In terms of our system integrator partners in the marketplace, all of those other products that come from the other business units of Schneider Electric are available to those channels today. A couple of years ago Schneider Electric embarked on an aggressive program to throw one roof over the whole house, rather than have a lot of separate business units, and try to establish an identity in our channels as well as in the end-user market. Along with that came sales efforts — sales teams and the different [business units] working together to go out to the marketplace to increase the accessibility to system integrators and to end users to the full breadth of Schneider products.

Belbina: From a systems integrator standpoint or the general contractor, they’re really shifting the way they go to market. You hear about these terms, IPDs, integrated product deliveries, and so forth. Schneider is at the forefront of making sure we get these total integrated solutions that we’re offering to the marketplace to the integrators. If you talk about building performance, for example, people are now looking at security beyond just access control, beyond the card readers. ‘Can I use the motion sensors for something else? Can I use my card reader for controlling the heat and ventilation?’ We’ve seen this especially from end users who are really focused on energy management; they want to link security and energy together. That’s the role Schneider is playing. We are going to systems integrators and offering them what we call end-to-end solutions. They don’t necessarily come to us and buy everything from us, but they also have the flexibility to do these integrations with other third-party systems.

/ SECURITYSALES.COM / MAY 2012

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Industry Pulse

HOT SEAT

Is the company looking to expand its portfolio even further through acquisition? Or is the strategy more organic? McCaughey: At a high level companywide there are efforts, both organic and acquisition, underway. The acquisition of Telvent [a provider of IT software and services] in Q4 really brings into the portfolio for Schneider Electric new capabilities around the area of energy management and information management, as well as information aggregation from lots of different systems, and brings that up into a platform that helps users run their environment more efficiently. We have a lot of solutions in the area of public safety as well. It helps Schneider Electric tack, if you will, to the smart cities environment marketplace. Telvent added onto a lot of the solutions that already existed in Schneider Electric. Those are some of the types of things that we’re doing.

clear — both to the channels and to the market — where the opportunities fit. I think the opportunities that our direct channel is looking at are going to be larger opportunities that require the kind of bonding capacity and financial capacity that a company like Schneider Electric can bring to those opportunities. Those create good opportunities in the marketplace for Schneider direct, and out of those opportunities and that kind of business activity in the market-

industry gets help from the Pelco brand and vice versa because we talk about integration. You asked the question about our other products and services from the rest of Schneider that are available to system integrators or end users in the security space, and the answer is, yes, for sure they are. That’s why it’s important to establish the Schneider brand in the security space as well, because more and more we’re finding end users’ primary concern often is security, but that’s no longer their only concern. They’re recognizing they’re part of an enterprise, whether it’s a manufacturing business, a hospital, a university, a commercial office building. They’re part of that team. When they report to that executive team in that business or enterprise, there are other responsibilities and other opportunities to help that business accomplish whatever is there to accomplish. That’s really what the Schneider brand is all about; looking at security as well as the rest of the business, bringing certain products and services and expertise to sure make those businesses are more efficient and more sustainable.

Schneider’s vision is really clear. We want to be at the forefront of the technology. We want to be the global leaders in energy management and security.

Belbina: Schneider’s vision is really clear. We want to be at the forefront of the technology. We want to be the global leaders in energy management and security. So first and foremost is, like Kevin says, we’re looking at both but we need to make sure we leverage what we have today. So organic growth for us is definitely the highest priority because we have a lot of resources. We have a lot of competencies and many offerings. How do we leverage all these resources that we have in place to meet our end goals? If we see other technology that can complement what we do today, then our CEO is not afraid to go after that. What is the philosophy in terms of going to market, particularly in the security space? Along with distribution, you have other interests that probably lean a little more to the end user. McCaughey: We’ve always had what we call a direct channel and a partner channel through the buildings business to the market. We’ve always had an excellent relationship managing those two channels well so that it’s

place really come name recognition and market acceptance. That plays well for our partner channels because they’re promoting the Schneider line. They’re promoting the Schneider products, so it really helps those guys too when we’re pursuing those types of activities to create awareness and acceptability of solutions and products in the marketplace, so that their path to market is a bit easier as well. The Pelco legacy is one of the best in the industry. How important is it to brand Schneider as a name within the security space? Is that a high priority? McCaughey: I would say branding Schneider in the security space is as important as branding Pelco in the security space. You said that Pelco has a long reputation. It’s a well-known brand in the industry. That brand stays at the top of the tree and we put the Schneider brand right next to it, because what we’re saying to the industry when we do that is we’ve got best-of-breed products and services from Pelco in a name and entity that is well known and well respected. The Schneider brand in the security

Belbina: The Pelco brand is very strong for us. It’s well recognized globally and we want to maintain that. At the same time, we want to better serve the end user. If we want to really give end users what they’re looking for from a total solution, building performance, smart cities or whatever, I think it’s important for us to bring the other entities all under the Schneider brand. That makes not only the Schneider brand name stronger, it’s also creating clarity for the end user so there’s no confusion there. They know this is what Schneider offers. In my opinion, there are benefits in the marketplace there to better serve the end user and the marketplace by having the Schneider brand on top.

FIND IT ON THE WEB For much more from our conversation, visit securitysales.com/hotseat.

/ SECURITYSALES.COM / MAY 2012

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Industry Pulse

NEWS

Each year the NFPA Conference & Expo features hundreds of leading suppliers displaying and demonstrating the latest fire/ life-safety products and technologies.

FDNY Fireman to Share 9/11 Survival Story at NFPA Conference & Expo

LAS VEGAS — Thousands of fire/life-safety professionals from across North America and abroad will convene here June 11-14 for one of the industry’s foremost events, the NFPA Conference & Expo. Held at the Mandalay Bay Convention Center, the National Fire Protection Association’s 2012 conference will offer attendees the opportunity to find answers to code questions and interpretations, discover solutions to technical challenges, identify suppliers actively supporting the NFPA mission, and develop specs for a current project, among other educational activities. Leading suppliers will display their latest products and technologies throughout the event. Via the “Exhibitor Presentation Theater,” attendees can pick and choose from a comprehensive schedule of new product introductions, installation training, product demonstrations and systems testing techniques. Among other event highlights: • More than 130 educational sessions will be divided into a dozen tracks geared toward specific professional needs • The General Session (June 11) includes reports by Thomas Jaeger, chair of NFPA Board of Directors; James Shannon, NFPA President & CEO; and a performance by comedian Gordie Brown • A June 12 presentation, “9/11: Leadership Before and After the Crisis,” will feature FDNY Deputy Chief Jay Jonas sharing his story of survival while highlighting improvements to the fire service and built environment since 9/11 For a complete list of education sessions or to register, visit nfpa.org/conference or call (888) 397-6209. Also, for related fire/ life-safety information, check out SSI’s “Fire Market Report” beginning on page 32.

UTC SELLS FIRE, SECURITY OPS TO PRIVATE EQUITY FIRM

FARMINGTON, Conn. — UTC Climate, Controls & Security has sold its U.S. fire and security operations to private equity fund Comvest Investment Partners. The new business is called Red Hawk Fire & Security. Two familiar industry veterans will lead the company: Mike Snyder, former president of ADT, is CEO; Dean Seavers, former president of GE Security and SimplexGrinnell, is president. The acquired business, with about $250 million in sales, 1,350 employees and 40 locations, was formed as a result of a roll-up of Red Hawk and several other small firms. Snyder tells SSI that his and Seavers’ immediate challenge will be to understand all of the strengths and capabilities in the organization, and determine the best ways to bring them to market. “This is an amalgam of nine acquisitions. Each individual company has really strong competencies that may be specific to its individual market but can be easily [replicated] or built on across the country,” he says. “Their total capabilities have not had that national [reach]. What we intend to do is find those centers of excellence and build them out nationally.” To read more, visit securitysales.com/RedHawk.

Growth Expected for Tri-Ed/Northern Video Following Its Sale

WOODBURY, N.Y. — Audax Group, a private equity firm, completed a deal to acquire Tri-Ed/Northern Video Distribution and stated it would soon look to grow the firm by acquiring more distributors. Audax manages more than $5 billion of capital. While the company holds investments across a range of industries, the Tri-Ed/Northern Video acquisition marks its first foray into the security industry, Audax Group Managing Director Jay Mitchell tells SSI. “We have a number of investments in value-added distribution businesses ... which have common traits, such as good organic market growth in fragmented industries,” he says. “We looked at the security product space where Tri-Northern is the No. 1 independent distributor and we really like the opportunity to continue to build the footprint, both in the U.S. and Canada.” Mitchell says Audax’s expertise in executing “buy and build” growth strategies centers on buying into a leading player with a strong market position and then helping the business acquire competitors. “The [Tri-Ed/Northern Video] team has demonstrated a track record of doing that already, and with our sourcing networks as well as our additional access to capital, we can accelerate that growth,” he says. To read more, visit securitysales.com/Audax.

/ SECURITYSALES.COM / MAY 2012

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THE RATIONALE FOR A NATIONAL PROGRAM Convergence Channel

by Paul Boucherle

Paul Boucherle, Certified Protection Professional (CPP) and Certified Sherpa Coach (CSC), is principal of Canfield, Ohio-based Matterhorn Consulting (www.matterhornconsulting.com). He has more than 30 years of diverse security and safety industry experience and can be contacted at paul@matterhornconsulting.com.

paul@matterhornconsulting.com

Regardless of company size, growing your business with a specific customer can be an exciting and scary experience. Discover the strategies, risks and rewards of engaging in a national accounts program. The lure of growing your business with a specific customer can be an exciting and scary experience if you are a smaller integrator. It can be just as scary for a larger company with a more mature national accounts program. How is that possible? Two words: customer expectations.

anaging existing accounts and future prospects can change as a company grows or migrates into networkcentric solutions. Change means choices. You can choose to be tactical and react to customer and market needs, thus becoming a good dancing partner, or you can choose to be strategic and lead the dance. Strategic selling in a rapidly changing industry might be the right move for your company. What is an example of a strategic selling program? National accounts come to mind. Having spent 17 years of my former corporate life in this arena, I will share some insights that may help you translate to planning and managing your growth as a systems integrator. While the term national accounts may immediately conjure up large corporations with vast resources, smaller companies are finding that strategically growing strong customer relationships is both practical and achievable using a national account strategy. You just have to be more innovative.

DELIVERING ACROSS GEOGRAPHIES Although there is no universal definition, I will define a “national account” as one that is strategic to your company’s growth, has facilities located across the United States, would buy business value, and requires you to realign or add resources to effectively manage and grow the business opportunity. You may have encountered a national account opportunity if your customers have ever said, “We wish you could provide security services at our other locations.”

/ SECURITYSALES.COM / MAY 2012

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The lure of growing your business with a specific customer can be an exciting and scary experience if you are a smaller integrator. It can be just as scary for a larger national company with a more mature national accounts program. How could that be possible? Two words: customer expectations. Meeting customer expectations across geographical boundaries is challenging no matter if you are a large, regional or a small integrator for these very good reasons: • Delivering consistency in solution installations, operations and service after the sale. • Local versus corporate politics cannot be ignored as a significant factor. • The length of your logistical arm. If you need to pat someone on the back or choke him/her, it’s a lot harder to do so from 1,500 miles away. • Time zones. Doesn’t sound like a big deal until you live it with your customer. • Processes and experience doing this type of work from a remote “influencing” position. Larger companies typically have an edge in this area. FIND OUT HOW MANAGEMENT VIEWS IT While these challenges are certainly real from a business, sales, service and installation standpoint, what about the IT department? In my experience, the network connectivity to geographically dispersed facilities and the role IT plays is crucial to implementing business solutions that are technology enabled. This means establishing a good working relationship with corporate IT can make or break how well

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Convergence Channel

you expand your national relationship. The right dialogue can create an important ally in winning the customer market share challenge in the national accounts arena. Ask this question to the right level of IT management: “Does your senior management consider your IT network to be a strategic asset or a tactical expense overhead?” I ask this question often in my consulting work. It is powerful. Carefully watch your customer. Their body language, as well as their words, will help you understand what the real opportunities might be in the future. If the IT response is expansive, positive and points to a strategic view, you may be looking at an opportunity to expand technology-enabled system solutions. You may be talking to a new business partner and advocate. Expanding network capabilities requires legitimate applications that deliver business value in new ways. This aptly describes where we are today with video and many other technologies. You can apply new cutting-edge (but not bleeding) systems that have paid their dues and are ready to deliver real solutions to old problems. Having designed and sold network-centric IP systems for 13 years, I can attest that IP video may be one that delivers measureable business results. APPROACHING NETWORKS PROACTIVELY What do you do if you get a different response from your IT contact who shares the fact that the CEO doesn’t see IT as a company asset? Well for one thing you will need a plan B to implement your national accounts strategy that may include taking on some new business and technical-like network responsibilities, such as building a network! Here is why that makes sense. The opportunity to design, recommend or install simple network equipment is not impossible, can be quite profitable when bundled with your other services, ensures a system will work as advertised and simplifies your customer’s life. Corporate IT departments don’t typically have extra time on their hands, which means if you assume you have their support, that it’s “their job” not ours, can leave serious gaps in your end game, which could be a working technology-enabled business/security solution. Like Tom Hanks’ “There’s no crying in baseball” line in “A League of Their Own,” I say, “There’s no finger-pointing” in national accounts. Your customer will simply find another partner. It may mean that while your technology prowess works well at the corporate headquarters, it may not automatically translate to the locations outside your area of operation. So what are your options? If you already have a mature national accounts program, don’t assume what got you where you are will sustain your customer’s confidence when you wander into the “converged jungle” of new technology. Many national account managers are excellent and strategic, but may lack necessary skills to work with the IT department. There are some fundamental skills that must be acquired to build business value and mutual respect with this new influential buyer. Don’t assume past revenue performance with an account is a future indicator of success. It is not. Find the right training to augment your skill sets.

/ SECURITYSALES.COM / MAY 2012

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Establishing a good working relationship with corporate IT can make or break how well you expand your national relationship. The right dialogue can create an important ally in winning the customer market share challenge in the national accounts arena.

HELP IS OUT THERE, OR GO IT ALONE What do you do if you don’t have a “mature” national accounts program? Quality-orientated, like-minded and smart systems integrator owners have found innovative ways to compete in the national accounts arena quite successfully the past five years. A couple of names that come to mind are PSA Security Network and Security Network of America. These organizations have taken their core beliefs, best practices and strategic growth plans to the next level by developing their own “virtual” national accounts programs, affording member companies and their customers a national footprint while owning their account relationships. The key to this working well is a formulized set of rules, expectations and trust. These networks are outstanding organizations; however, you may have a wildly independent spirit and business nature. So what other options are available? You will need to look in the mirror deeply and honestly. Your independence may prevent you from playing in the national accounts sector or you may need to add significant internal resources to manage your growth in this area. It can be done; it just takes time and money. If you serve a customer base that values your services, and is willing to “fund” your growth and reach with reasonable profit margins while working through growing pains, then go for it! There are several companies that have succeeded in this manner, such as Bass-Security and Roth Brothers, both Ohio-based companies. In conclusion, I have three suggestions to anyone who wishes to grow their business through national accounts: 1. Know thyself and what your company culture can gain from a national accounts strategy. 2. Train thyself to ensure your teams’ skills match their new responsibilities and challenges. 3. Take national accounts seriously; it can be defined as both high risk and high reward.

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MAKING SYSTEMS MORE USER-FRIENDLY TECH

TALK

by Bob Dolph

Bob Dolph has served in various technical management and advisory positions in the security industry for 30+ years. To share tips and installation questions, E-mail Bob at bdolph.ssi@gmail.com. Check out his Tech Shack blog at www.securitysales.com/blog.

bdolph.ssi@gmail.com >10-24 in. max.

255mm

>255-610mm

15-54 in.

380-1,370mm

Height of operable control relative to the vertical plane

ADA Accessibility/Usability Example

While government specifications and standards are many, understanding what is needed to provide access to all types of users is important. Good planning will make for a more user-friendly system for all, regardless whether it is a government or private installation. Diagram courtesy GSA

ecently, I reviewed some government standards designed and implemented with the intent to make systems easier to access and use for disabled people. This got me thinking about something we often take for granted: How user-friendly are the systems we are designing, selling and installing? One of the problems we have always faced in technology industries, including electronic security, is the systems have been designed and built by engineers and technicians only to be turned over to laypeople to operate and understand. This is often apparent in the user’s manuals that are often filled with technical jargon, acronyms and logic that make them difficult to fully understand for nontechnical owners. How often have you, as a manufacturer or dealer, taken the time to conduct focus groups to better help you understand your customers’ needs and perceptions of the products and services you provide? These exercises can be real eye-openers. This month, we will take a look and possibly do a self-examination of the efforts we are taking to make customers comfortable with the systems they interface with on a daily basis. GOVERNMENT STANDARDS SET STAGE While we often find ourselves surrounded by more and more government standards and regulations, as technology implementers it can help us be more sensitive in general to the “userfriendly” nature of our work. When you think about it, nontechnical system users are handicapped in a way as they often do not have, or wish to have, the technical savvy to fully comprehend

Vertical plane

15-54 in.

Vertical plane

380-1,370mm

The latest and greatest security solutions don’t mean squat if they are too complex for end users to operate. Technological innovation is wonderful, but we must incorporate operational simplicity to achieve security’s peace-ofmind objectives.

10 in. max.

sophisticated security systems. So, how can we make these systems accommodate their comfort level? This is your challenge and your government’s suggestions can help. Two government standards I have referenced for this article are the well-known, wide-sweeping American Disabilities Act (ADA; www.ada.gov) and the lesser-known Section 508 of the Rehabilitation Act of 1973 (www.section508.gov). Experienced dealers have often had to apply ADA standards to public areas such as fire annunciation, door and device access. By using the concepts contained within these standards in everyday installations we can make both public and private areas more accessible and user-friendly for all, not just those with physical or mental disabilities. 5 IMPORTANT ELEMENTS OF USABILITY Moving forward we should first clarify use of the terms “accessibility” and “usability.” The dictionary defines accessibility as the capability of being reached, while usability is the capability of being used. Accessibility will often be emphasized in ADA regarding hardware as the disabled must be able to reach products and services. Usability is more applicable to all using a product or service. This will be emphasized in areas such as Section 508 in dealing with electronic and information technology (EIT) such as software and Web sites. The concepts of good usability are not complicated and may even seem simple. However, are you doing your best to comply? In order to make EIT usable as a product or service it should

/ SECURITYSALES.COM / MAY 2012

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have the following five elements: 1. Easy to learn — If your customers cannot learn to use something quickly they will develop a negative attitude of your product, services and company. Simple instructions on mobile apps, Web sites or workstations will make customers happier. 2. Quick to use — Avoid long learning curves. Busy businesspeople do not want their staff going through extra steps and long waits to process a new alarm badge. 3. Simple to remember — Did you know that 50% of all Web sales are lost due to poor design? Similarly, customers operating alarms may only have to disarm a system once in a blue moon. How easy is that process for them to remember? 4. Easy to navigate — Have you configured the systems software, startup and backup process with easy steps, and even diagrams to reference? People will always make errors when operating a system. What have you done to minimize them? 5. Enjoyable ease of use — Often customers do not regularly use their security system because it is not enjoyable to use. If the systems talked to them in a nice voice or operational software had a friendly appearance then it would be more inviting to use. Keep the engineering design in the background. Do your mobile apps address content, design and function? 3 DEALERS’ IDEAS FROM THE FIELD I asked the security community to share some suggestions on how to make systems more user-friendly, including those aimed at disabled users. Below are some replies.

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“I have used LED indicators on door strikes and different colored strobes on alarm outputs for deaf customers. I also implemented installation standards for making alarm keypads wheelchair friendly. I added an ‘Is the system suitable for their user?’ line to our system takeover checklists. I also added a big REX button for arm/disarm for a customer with macular degeneration.” — Jim Sutton, AAA Alarm Systems, Winnipeg, Manitoba, Canada “Our company uses voice keypads and remote controls for arming/disarming. We have a way to add voice control with voice prompts.” — Thomas Callarik, Hitek Security Solutions, Martins Ferry, Ohio

/ SECURITYSALES.COM / MAY 2012

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TECH TALK

An interface relay may not at first be thought of as a tool. It is, however, the perfect and very versatile tool to interface alarm inputs and outputs to a variety of special user devices such as those with audible and visible functionality. That is why I am featuring the old reliable ELK 912 module (elkproducts.com). How about using a relay to trip a bed shaker device to get a deaf person up when smoke detector goes into alarm? The product is a high quality 12VDC relay with SPDT (Form ‘C’) dry contacts. It features low current draw, positive or negative activation and is suitable for general purpose switching of devices or high current loads.

This general purpose compact relay enables control of high current draw devices such as door strikes, sprinkler valves, electric dampers, motors and more from any device producing a low voltage output signal. Photo courtesy Elk Products

TOOL

TIP

“Several of our dealers have used our long-range RFID readers and tags for severely handicapped users, such as for doctor offices, etc., tied into automatic door openers. Some have been programmed to work with their Wiegand access control panels. Others have simply used the onboard relay on our reader.” — Pete Martin, 1st Choice Security Solutions, Atlanta

PUT YOURSELF IN USERS’ SHOES More systems installed today require access to supporting software applications. This can be access or CCTV management software, Web pages and remote mobile apps on smartphones. The Section 508 tenets are interesting in that they were originally designed as performance standards for EIT vendors supplying products to the General Services Administration (GSA). However, if we look at some of these requirements they can give us insight into making software

and PC applications more user-friendly. Let’s take a moment to review what we, as alarm techs, dealers and integrators, can do to make our systems more user-friendly. Do you only specify keypads with a dimple on the ‘5’ key? Do you arrange printers at a workstation so people in wheelchairs can easily get to them? Are your fire alarm pull-stations and alarm keypads not more than 54 inches up on the wall? Do you have a usability and accessibility checklist for new installations and takeovers? I think you get the picture.

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ADAPT TO MARKET CONDITIONS OR SUFFER CONSEQUENCES Monitoring Matters

by Kevin Lehan

Kevin Lehan is Manager of Public Relations for Des Plaines, Ill.-based Emergency24 Inc. He also serves as executive director of the Illinois Electronic Security Association (IESA).

k.lehan@emergency24.com

he sky is NOT falling. That’s your competitor making it rain by going to market in a new manner. Instead of fretting over it, alarm dealers must adapt to the market conditions and work with their central station to position themselves to not only compete, but to thrive. If that means creating a market niche, offering a new service or promoting the private industry’s technical superiorities, you better do it. If you don’t, your business will suffer.

YES, WE CAN DO THAT! Increasingly, alarm components are being integrated with other electronic elements in a building, namely audio/visual entertainment systems. It’s natural then for A/V system installers to branch out to offer security devices in their packages. For example, many building owners now choose to have cameras trained on points of entry so a motion sensor can trigger a video system that displays real-time images on monitors or televisions in a picture-in-picture manner. They may even incorporate access control capabilities to allow entry into the premise. Once this step is taken, it makes sense for A/V installers to offer interior motion sensors, as well as PIRs, glass-breaks and so on. The impact of this integration is that alarm dealers now have a new class of competitors in their marketplace. However, that does not mean you have to cede the territory. Instead, alarm dealers should branch out to A/V systems, market their security expertise and leverage knowledge of working with a central station to incorporate other unique capabilities, such as fire systems, environmental monitoring and two-way voice. Think about it. If you, as a prospect, had to choose only one company with similar offerings to install these two distinct systems, wouldn’t you hire the professional with specific skill set who could help protect your family or employees? Additionally, making the decision to offer A/V installation services may present an opportunity to focus on vertical markets, such as multifamily housing or assisted-living facilities to name a couple. LOOK FOR NEW REVENUE STREAMS In addition to planting your flag in new ground, alarm dealers should examine their core competency to find ways to expand their service offerings to existing customers — and their families. Although personal emergency response service (PERS) is not new, the demand for it is growing as the cost of assisted living and nursing care continues to outpace almost all investment portfolios. That’s why many central stations have begun to offer

it in recent years. PERS presents a great opportunity for alarm dealers to increase their recurring monthly revenue (RMR) stream with minimal service outlay because most installations require only an electrical outlet and a telephone line.

Making the decision to offer A/V installation services may present an opportunity to focus on vertical markets.

COMPETING WITH THE PUBLIC SECTOR In an age during which local government bodies are strapped for cash, alarm dealers may find themselves competing for customers with the public sector. When this happens in a market, alarm dealers are usually handicapped by the local authorities having jurisdiction (AHJ) in multiple ways, including mandates for fire systems to connect to a municipal fire-alarm board and AHJs “influencing” potential customers to use the government’s services. Faced with these conditions, alarm dealers must demonstrate the private sector’s superiority in technology, physical plant requirements, service and price. Fortunately, most potential customers would prefer to work with the private sector — especially after they are informed of the higher central station standards that must be met compared to the local public safety answering point (PSAP), which is not audited by third parties like UL or FM Mutual. To make this point, alarm dealers should use their central station company as a direct comparison to the local PSAP and educate the market about its redundancies, performance standards and physical plant capabilities, which will far surpass those of the PSAP. Also, the end users must understand that private sector central stations provide services the PSAPs cannot, including notification of party lists and implementing false alarm prevention tactics like multicall verification, cross-zoning and video monitoring. (You should also point out that PSAPs actually increase their revenue via fines when there is a false dispatch.) Lastly and most importantly, let your customers know that central stations are constantly competing with each other for business, which raises the performance bar yet keeps costs in check. By simply asking the customer if they believe the government has their best interests in mind, you will have made a very valid point as to why they should choose the private sector over the public sector.

/ SECURITYSALES.COM / MAY 2012

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FIRE ISSUE

2012 FIRE MARKET REPORT

MAKING

HOMES

SAFER HAVENS

FIRE FAST FACTS Average residential fire-only installations costs $954, down about $41 from 2010. Security contractors collect 13% of their total revenues from fire-only installations. Average number of smoke detectors installed in a commercial fire alarm system is 23; residential is 5. Average percentage of installations that include carbon monoxide (CO) detectors is 23%. 3% of security contractors are in involved in sprinkler systems. Source: SSI 2011 Installation Business Report

A probe into residential sprinklers and false alarm activity offers installing system contractors insights on the latest developments driving the fire/ life-safety marketplace. SSIâ&#x20AC;&#x2122;s annual report also provides legislative and code updates for carbon monoxide detection. by Rodney Bosch

he latest fire loss data from the National Fire Protection Association underscore the continuing need for installing contractors and suppliers to steadfastly advance the delivery of life-safety services and equipment to protect lives and property. Firefighters responded to 1,331,500 fires in the United States in 2010, according to data received by NFPA from fire departments answering its annual National Fire Experience Survey. Among all reported fires, 482,000 occurred in structures, a slight uptick

/ SECURITYSALES.COM / MAY 2012

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of .3% compared to the previous year. About 384,000 fires or 80% of all structure fires occurred in residential properties, an increase of 1.9%. Of these blazes, 279,000 happened in one- and two-family homes, accounting for nearly 58% of all structure fires. An additional 90,500 occurred in apartments. Loss of life also crept higher in 2010. Fires claimed the lives of 3,120 civilians, an increase of 3.7%. Notably, home fires caused 2,640 or 85% of all civilian fire deaths. That marked an increase of 2.9% compared to 2009. The statistics reinforce the stark irony PHOTOGRAPHY ÂŠISTOCKPHOTO.COM/PARKERDEEN

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FIRE ISSUE

FIRE/LIFE-SAFETY MARKET OVERVIEW

Civilian Fire Deaths in U.S. Homes that the vast majority of deaths occur in homes, the places where people often feel the safest, says Lorraine Carli, vice president of communications for NFPA. “We have made tremendous progress in reducing the fire problem in the United States since we began looking at these numbers in the late 1970s,” she says. “But this report shows us that more must be done to bring the numbers down even further.” It is in that larger context that SSI publishes its annual Fire Market Report to keep fire/life-safety professional abreast of key trends, technologies, codes and other factors currently affecting the marketplace. This year we’ll delve into residential fire sprinklers, carbon monoxide (CO) detection regulations, false fire alarm activity and more. HOME FIRE SPRINKLER ADVOCACY During the first week in April, fire service professionals and safety advocates from across the nation gathered in Chicago for a one-day summit to promote a singular mission: the installation of fire sprinklers in all new one- and two-family homes. Fire sprinkler supporters are in for a tough, extended battle to achieve their mission; a bevy of deep-pocketed opponents are fighting their efforts vigorously on local, regional and national levels. Yet NFPA President Jim Shannon told the gathering in Chicago its work would be unwaveringly supported through the NFPA’s Fire Sprinkler Initiative, which was launched in 2009. “We knew right from the start that we were going to run into opposition, especially from homebuilders, who have a great deal of influence and seasoned lobbyists working on their behalf,” he told the gathering. “And we knew that they would fiercely oppose our efforts to get states to require sprinklers. But we are not discouraged because the logic of our efforts will ultimately prevail.” Among opponents’ litany of contentions, they maintain the expense for home fire sprinklers will make housing unaffordable, especially for firsttime buyers. Advocates cite a 2008 cost assessment study by the NFPA-sponsored Fire Protection Research Foundation,

3,165

3,110

3,225

3,430 3,005

2,780

2,695

2,590

2,580

2001

2002

2003

2004

2005

2006

2007

2008

2009

2,640

2010

An estimated 2,640 civilians died in residential fires during 2010, an increase of 2.9%. Of these deaths, 440 took place in apartment fires, a 5.4% decline from the previous year. Another 2,200 died in one- and two-family dwellings, an increase of 4.8%. “Homes” include dwellings, duplexes, manufactured homes (mobile homes), apartments, rowhouses, townhouses and condominiums. Other residential properties, such as hotels, motels, dormitories, barracks, and rooming and boarding homes are not included. Source: National Fire Protection Asssociation (NFPA)

which said the price tag of installing home fire sprinklers averages $1.61 per square foot for new construction. The total cost, according to the foundation, is similar to what people are willing to pay for carpet upgrades , a paving-stone driveway or a whirlpool bath. So far in 2012, opponents have lobbied lawmakers in several states to introduce bills that would prohibit jurisdictions from including one- and two-family dwelling fire sprinkler requirements in the adopted codes. Among them are Colorado, Hawaii, Illinois, Minnesota, Oklahoma and Tennessee. All but 17 states have at least one local jurisdiction that has adopted home fire sprinkler requirements. However, advocates have celebrated a few key victories at the state level as well. In 2010, California adopted the International Residential Code (IRC), including its requirements for automatic fire sprinkler systems in new one- and two-family dwellings, effective Jan. 1, 2011. The same 2009 IRC is effective in Maryland, and South Carolina voted to adopt it as well but the requirement was delayed until 2014 by legislative action. While prolonged advocacy and code adoption are expected to spur overall growth in commercial and home fire sprinklers, this particular line of work remains mostly a rarity for traditional

security installing contractors. According to SSI’s 2011 Installation Business Report, about 3% of installing security firms are involved in sprinkler systems. There are recent indications in the marketplace, however, that suggest some traditional security contractors see opportunity in sprinkler systems. Take, for example, acquisitions of fire service companies made in the past couple of years by such firms as Select Security of Lancaster, Pa., and Safeguard Security of Scottsdale, Ariz. The proprietors at each firm say a large part of their focus is on providing test and inspection services, plus certifying that end-user systems meet and comply with NFPA fire code standards — all of which generates recurring revenue. After he acquired Fire Systems Inc. (FSI) in 2010, Select Security President Pat Egan said he became one of the first installing security and monitoring businesses to operate a fire sprinkler division. Pennsylvania would later repeal its residential sprinkler law, dampening Select’s prospects for the time being in that market niche, but Egan says the division continues to evolve and grow. Cases in point: Select just received a sprinkler contract for 14 townhouses, and it continues to reap success in renovation projects, such as restaurants and strip malls.

/ SECURITYSALES.COM / MAY 2012

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FIRE ISSUE

FIRE/LIFE-SAFETY MARKET OVERVIEW

Select Security has also started crosstraining its alarm technicians to perform backflow certifications for sprinkler check valves, along with what Egan refers to as “emergency response” services, such as valve shutdowns and leak stoppages. “We are very big on the business. It has all the elements of recurring revenue. We do the renovations, the emergency repairs and we do the certifications and inspections as required by code,” he says. “That is really where the profit is.” THE RISE OF CO DETECTION According to the Centers for Disease Control and Prevention (CDC), unintentional CO exposure accounts for an estimated 15,000 emergency room visits and 500 deaths in the United States each year. Moreover, because symptoms from exposure to CO are similar to the flu, injuries and deaths are thought to be greatly underreported, and actual deaths may exceed 2,000. In recent years, an increasing emphasis

on legislating CO detection has been pursued by industry stakeholders. Nearly 40 states have adopted requirements, either by statute or code, mandating the installation of CO detection devices in single-family homes, multifamily dwellings or other residential structures and commercial buildings. These initiatives have resulted in the growth in CO alarm and detector use since the mid-1990s, and are credited for helping reduce related injuries and deaths. A principal supporter of CO alarm and detection requirements is the National Electrical Manufacturers Association (NEMA), which advocates at all levels of government. NEMA recently released the first edition of its “SB 7 NEMA Applications Guide for Carbon Monoxide Alarms and Detectors,” geared for systems designers and installers, among other professionals who perform test and inspection services. The guide, developed by NEMA’s Signaling Protection and Communications Section (3-SB), is

intended to meet the rising need to educate a greater number of installing contractors on proper application, installation, location, performance, inspection, testing and maintenance of CO detection devices. During a podcast hosted by NEMA in March, Richard Roberts, industry affairs manager for Honeywell Life Safety and Co-Chair of the NEMA 3SB Smoke/CO Group, said the number of jurisdictions requiring CO detection is projected to increase during the next three to five years. A significant factor in the projected increase is due, in part, to the 2012 edition of the IRC, among other codes, which contain provisions for the installation of CO detection in one- and two-family dwellings and commercial sleeping occupancies. “The application guide explains the operational differences between alarms and detectors and covers their location requirements,” Roberts says. “It also covers some of the specific requirements

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of CO detection systems such as which types of control panels are permissible; specifies when building occupant notification is not required; and reviews the secondary power requirements for CO detection systems.â&#x20AC;? Some of the material contained in the guide was extracted from NFPA 720, â&#x20AC;&#x153;Standard for the Installation of Carbon Monoxide (CO) Detection and Warning Equipment.â&#x20AC;? Along with and NFPA 720, other leading standards for CO devices are ANSI/UL 2034 and ANSI/UL 2075. Despite previous efforts by industry stakeholders, passing a national standard that incentivizes states to promote CO detection remains an elusive goal. However, the Security Industry Association (SIA) says it remains committed to the work. Joined by several other groups, SIA is currently supporting bipartisan legislation reintroduced in Congress to increase the use of CO alarms. The bill (H.R. 4326) is similar to legislation that was approved by the House of Representatives in the previous

23%

Percentage of Residential Sales by Business Type Fire/Life Safety

18%

Intrusion Detection 12%

Video Surveillance Access Control

Alarms, whether intrusion or fire, are the leading residential systems markets for installing security contractors. In fact, both categories grew during the period, fire/life safety by 3 percentage points and intrusion by 1 point. In all categories, small companies (less than $1 million in revenues) rely on residential customers more heavily than other providers with a total of 89%, followed by midsize (35%) and large operators (22%). Note: graph not intended to add up to 100%. Source: 2011 SSI Installation Business Report

session of Congress, which stalled in the Senate. If adopted, the bill would establish a grant program to encourage states to enact a rule or law requiring all dwelling units and apartment buildings to have CO alarms. States with greater than average fatalities from CO poisoning and those serving vulnerable populations, such

as children or seniors, would be given priority. According to the Consumer Product Safety Commission (CPSC), which would administer the grant program, only 35% to 50% of U.S. households have CO alarms. (For more detailed information related to CO and life safety, see â&#x20AC;&#x153;Fire Side Chatâ&#x20AC;? column on page 58.)

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FIRE ISSUE

FIRE/LIFE-SAFETY MARKET OVERVIEW

CELLULAR ADVANCES IN COMMERCIAL FIRE SYSTEMS by Shawn Welsh

CURSE OF FALSE FIRE ALARMS The issue of false alarms always has a prominent place in any discussion about alarm and detection systems, and fire/ life safety is no exception. According to a study conducted by NFPA, U.S. fire departments responded to roughly 2,187,000 false alarms in 2010, which marked a slight decrease of .4% compared to the previous year. That indicates one out of 10 calls responded to by fire departments were false alarms. The aggregate of all false fire alarms included dispatches for 708,500 system malfunctions or 32.4%. “Unintentional” calls accounted for the most false alarms at 45.3%; followed by “other (bomb scares, etc.)” at 14.8%, and “malicious, mischievous” at 7.5%. During a 10-year period beginning in 1988, false alarm calls for system malfunctions increased annually from 550,500 to 901,500 in 1999. The number of calls would eventually reverse course and decrease more than 21% by the end of 2010. Despite the reduction, nuisance alarms continue to be a major concern for industry stakeholders, including the International Association of Fire Chiefs (IAFC). In its work to reduce the amount of nuisance alarms in commercial facilities, IAFC submitted 41 documents during the proposal and comment cycle for the 2013 edition of NFPA 72. On its Web site, IAFC states the proposals “reflect a comprehensive approach to leverage existing and new technologies, current IAFC policies and NFPA code, and the need for local fire departments to gain efficiencies that are safe for the public and responders.” While most of the proposals were rejected by NFPA technical committees, several were pushed through. Despite various territorial boundaries, industry stakeholders have at times showed a willingness to work cooperatively toward combatting the myriad causes of nuisance alarms. For instance in May 2011, IAFC, U.S. Fire Administration and NFPA hosted a summit to discuss the issues surrounding nuisance alarms and the risks associated

Following new revisions adopted into the 2010 edition of NFPA 72, cellular has shifted from simply being the backup communication path for commercial fire systems. This development is a result of the latest edition of the code allowing UL864-Listed cellular communicators to be installed as the sole path of communication for commercial fire systems. Now installing system contractors can offer their customers newfound savings while benefitting from the latest technology. On average, cellular monitoring costs the customer significantly less than a dedicated landline. The updated code allows all of the landlines currently dedicated to the master control unit to be replaced with a single cellular communicator. This eliminates a bill from the telephone company for the customer and affords the dealer to collect a more costeffective monthly monitoring fee. Along with this good news come a few considerations to keep closely in mind when choosing cellular. With the rapid changes in cellular technology, it is important to select the right cellular alarm communicator. Dealers installing 2G or GSM cellular solutions will are expected to have to replace those units in the next five to eight years since 2G is being phased out. What can dealers do to avoid the financial impact of having to purchase new hardware, plus the cost of rolling a truck, to replace these units? They should start installing cellular alarm communicators that work on 2G, 3G and 4G networks to future-proof their installations. An example of a product that meets these requirements and is helping dealers take advantage of the code change is Telguard’s TG-7FS unit. Another consideration to be mindfulness of is that while NFPA 72 is more than a year old, many authorities having jurisdiction (AHJ) are not familiar with it and may oppose the use of cellular as the sole path. To address this issue, ask the manufacturers of cellular communicators to provide an explanation of the code along with a checklist to help the AHJ quickly and easily approve a sole-path installation. It’s this type of collaboration between dealers and manufacturers that will help increase awareness. Shawn Welsh (swelsh@telular.com) is Vice President of Marketing and Business Development for Chicago-based Telular Corp.

With the 2010 edition of NFPA 72, UL864-Listed cellular communicators can be used the sole path of communication for commercial fire systems.

with them. Panel discussions centered on design and manufacturing, installation and maintenance practices, and emergency response models. Following the wide-ranging discourse, the event sponsors drafted several summary consensus points. Among the imperatives is “the need to enhance efficiency of service by lowering the number of calls that need a system response, and determining the appropriate response for those who do require system-wide resources.” Participants agreed that existing commercial alarm systems do function appropriately, but “most of the challenges stem from the physical, operational or response environment in

which current systems exist.” Building owners and managers must be viewed as critical stakeholders, since “success will be much dependent on what [they] will be willing to accept, able to implement and held accountable for,” according to the summary. Complacency created by nuisance alarms is a growing and significant threat, the groups warned. Likewise, education, above all, must improve in order for all stakeholders to galvanize in a unified front against false fire alarms. “We can only find a common solution if we can identify the common problems,” the summary stated. Rodney Bosch is Managing Editor of SECURITY SALES & INTEGRATION. He can be contacted at (310) 533-2426 or rodney.bosch@securitysales.com.

/ SECURITYSALES.COM / MAY 2012

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TECHNOLOGY

FIRE ISSUE

ADVANCES SPARK NEW AGE OF FIRE SAFETY

erhaps no other technology in the past 150 years has contributed more to fire safety than early warning smoke detection systems. Data collected during the past 40 years alone estimates 90,000 lives have been saved by smoke detection and fire protection technologies. In addition, countless other potential tragedies may have been averted by early warning and intervention. From rudimentary heat detectors invented in the late 1800s to sophisticated and integrated electronic systems in place today, smoke detection has been a significant scientific achievement.

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by Ron Ouimette Like many aspects of modern life that we take for granted, progress has been a convergence of need and opportunity. The basic methodology of smoke detection is remarkably simple. Scientists discovered a variety of ways to measure and monitor specific signals such as light intensity or ion currents. Detectors are then calibrated to trigger an alarm when these signals change in a way that suggests a fire might be present. Technological improvements over time made the systems more effective and cost-efficient. A significant advance came in the 1920s when the ion flow chamber (the first true smoke detector)

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was invented in Switzerland. Soon after, scientists began experimenting with other technologies such as projected beam and photoelectric detection methods. Another major breakthrough occurred in the 1940s when scientists at Cerberus (now part of Siemens) adopted more efficient cold cathode (vacuum) tubes in ionization units. This technology was the standard for smoke detection well into the 1960s. In the latter part of the past century, most advances involved making smoke detection units smaller, more sensitive and more efficient. Transistors replaced trigger tubes. Safer and more stable radiation sources improved ionization chambers. Low-power units ushered in low-cost battery-operated devices for home use. Ultraviolet radiation detectors were used to develop the first flame detectors. Recent studies reveal the odds of dying in a house fire are reduced 50% by having a working smoke alarm/detector installed. In commercial buildings, even in the presence of sprinkler systems, the benefits of smoke detection are significant. Sprinkler systems, by design, provide a localized response

as heat (typically above 135° F) triggers the sprinkler directly where the fire is burning. Smoke detection systems integrated across commercial buildings quickly warn occupants of a potential danger before it spreads. Clearly the best life-safety solution is to provide a combination of early warning smoke detection and fire sprinkler systems. Let’s take a look at the impressive variety of fire/life-safety detection technologies and devices currently available to help installing contractors best protect their clients’ persons and properties. ADVANCES ENABLE SMARTER DETECTION Today the focus is on integration of “smart” (multicriteria fire detection) technologies that increase value, simplicity and reliability. For example, one area of development involves advanced signal analysis via software that converts sensor signals into a mathematical formula. In real-time, the software dynamically compares signal data to sophisticated algorithms that differentiate between a fire emergency and harmless smoke (e.g., from a welder,

Electrochemical Gas Detection Technology

Aspirating Smoke Detection System Gas detectors (above) operate on a similar principle to ionization detection. Electrochemical or catalytic circuits are programmed to measure changes in current brought on by the presence of gases with specific molecular structure. Upperend optical systems, such as laser sensors, work well in sophisticated aspirating smoke detection systems (left) that actively monitor air samples and channel them to a centralized detection unit.

steam, dust). In special applications such as data and telecommunication centers, ultrasensitive air sampling smoke detection systems continuously monitor the air and apply a staged alarm sequence to determine if, when and how a response is needed. For example, an active monitoring system may combine multiple air-intake ports to provide more immediate notification and increased efficiency within areas of high airflows. One detector can cover up to 20,000 square feet as compared to passive detectors that generally cover about 900 square feet. Additionally, spot detector technology has evolved to include the capability to provide high sensitivity capabilities for Very Early Warning Fire Detection (VEWFD) suitable for the protection of a telecommunication facility, data center and high value areas. Multicriteria fire detectors are the emerging technology in the 21st century. Technology today provides for two or more different fire sensors (e.g., smoke, heat, CO, ion, etc.) in a single detector that will process the signals with algorithms to determine alarm or monitoring status. Multicriteria detectors can sense danger more quickly, avoid nuisance alarms and provide valuable information for emergency responders. Combined with newer panels and control systems, they can also improve reliability and reduce maintenance costs. As smoke detection advancements continue it is useful to understand the current state of detection technologies to better understand the landscape and make informed choices when specifying system elements, and to mitigate risk within the context of the facility and its intended purpose. INCORPORATING IONIZATION Detectors using ionization technology are based on an “ionization chamber” that includes a small radioactive source and a positively and negatively charged electrical circuit. The radiation “ionizes” the air in the chamber by removing an electron and thus maximizes electrical flow across the circuit. Any smoke particles entering the chamber

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FIRE ISSUE

FIRE SAFETY INNOVATIONS

Multicriteria Detection With Thermal Sensor neutralize the air, which reduces the current flowing across the electrical circuit and triggers the alarm. Generally speaking, ionization technology is low cost, and most common in home detection units and basic commercial systems. Ionization smoke detectors are particularly effective for quick response to fast burning fires (which may produce less smoke than smoldering fires), but these kinds of units are also more prone to false alarms (e.g., from cooking, toaster, cleaning aerosols etc.) Several companies pioneered the early commercialization of ionization smoke detectors. For the most part, ionization sensors are used in residential systems or in some multicriteria detectors. In the latter, combining ionization with other technologies helps detect different smoke signatures more quickly, while also avoiding false alarms.

to measure changes in current brought on by the presence of gases with specific molecular structure. Gas detection is becoming more common and sophisticated to address air quality and safety issues. For example, 35 states have legislation mandating installation of carbon monoxide (CO) detectors for life safety. One important trend is the Ionization Smoke Detection Technology integration of gas detection into smoke detection systems. Combining gas detection with heat and/or smoke sensors can help avoid false alarms and allow multicriteria detection systems to more effectively analyze a given situation. For example, the system may react differently if heat alone is rising rather than if Multicriteria units (top) are often integrated into smart it detects both rising heat and an monitoring systems. Ionization technology (bottom) is based increase in CO or other gases from on an “ionization chamber” that includes a small radioactive combustion. source and a positively and negatively charged electrical circuit. The radiation “ionizes” the air in the chamber by removing an Gas detection sensors are electron and thus maximizes electrical flow across the circuit. commonly used in multicriteria units and in advanced systems that combine smoke detection and commercial units because they are more air quality monitoring. The combined accurate at detecting smoldering fires benefits can be significant. than ionization. These types of detectors OPTICAL SHEDS LIGHT ON SENSING are relatively low cost and have proven In the most common smoke detector reliable across a long period of time. units photoelectric cells register 4 TYPES OF THERMAL DEVICES The upper-end optical systems, changes in light intensity as minute Many different temperature-sensitive such as laser sensors, also work well in smoke particles enter the detector. technologies are used to detect fire, often sophisticated aspirating smoke detection based on an alloy or other material that These units often have the receiver systems that actively monitor air samples will change shape, form, or electrical sensor at a 90° angle to the photo beam and channel them to a centralized — smoke particles “scatter” the light properties as temperature changes. detection unit. beam and cause rays to hit the receiver, Thermal detectors typically fall into Multicriteria units are often which triggers the alarm. Forward one of four categories: integrated into smart monitoring scatter detectors typically are more Fixed temperature — These sensors systems. For example, one accurate sensing light smoke particles, trigger once heat passes a certain point. manufacturer has developed a dual while backscatter technology better They have been used for decades, distinguishes lighter and darker particles. optical multicriteria system that especially in conjunction with autocombines both forward and backward More advanced optical systems extinguishing systems and in very light scattering sensors with thermal operate on a similar principle, but may harsh environments that affect other detection to provide very early warning involve laser beams or more precise and detection technologies. to both smoldering and flaming fires. accurate light sources. Light meters that Rate-of-rise thermal/thermistormeasure ultraviolet rays are also used based — These units are far more in “flame detectors” that help identify sophisticated and apply a type of GAS UNITS WARN OF INVISIBLE when a fire is present in manufacturing computer logic to the situation based on DANGERS environments or other situations that are the dynamics of the speed and degree Gas detectors, which are in common normally smoky or dusty. use today, operate on a similar principle of temperature increase. They are often Photoelectric sensors have long been as ionization detection. Electrochemical combined with other technologies in popular in home smoke detectors and systems operated by algorithms to most or catalytic circuits are programmed

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Major U.S. cellular carriers have made their stance clear:

The 2G Sunset has started. If you install a GSM or GPRS based product you will be forced to replace it with a modern 3G one within a few years. For the average security dealer, this will amount to thousands of dollars of revenue spent on truck rolls and replacement equipment. To avoid the sudden impact of the next sunset, switch to 3G products today.

Learn more at 2GSunset.com.

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FIRE ISSUE

FIRE SAFETY INNOVATIONS

5 STAGES OF FIRE PROGRESSION accurately determine the scope of the threat and desired response. Linear heat detection — This typically consists of a cable with a combination of polymer and/or digital technologies that can detect heat conditions anywhere along the length of the cable. The cable is normally comprised of tri-metallic conductors individually insulated with a heat sensitive outer layer that is designed to break down at various selected fixed temperatures. This technology has historically been used in freezer warehouses and storage facilities where other detection technologies may not be ideal. Multicriteria — These units integrate thermal sensors and can be quite sophisticated. For example, one manufacturer offers a detector that integrates advanced signal technology software with two optical sensors, two thermal sensors and one CO sensor. It allows for the earliest and most reliable detection, with highest immunity against false alarms. It can also be programmed for independent (lifesafety) CO monitoring or cooperative functionality. VIDEO PACES LEADING-EDGE METHODS Specialized surveillance software has been developed that now enables video cameras to be used for fire detection purposes. Using video image detection (VID), the cameras monitor the area and are programmed to detect specific visual signals such as flickering flames or rising plumes of smoke that indicate the presence of fire. In recent years, complex algorithms have been

The exact science, technology and application of smoke detection systems vary. But the one consistent factor is a quick and accurate assessment of the danger, and an effective warning to all occupants in the building. Fires may develop very quickly or somewhat more slowly, depending on the combustible material involved. In any case, there is a relatively small window of opportunity early in the development of the fire to extinguish the flames and/or safely evacuate. Most fire professionals agree that the ultimate protection of lives and property comes from a combination of the early warning of smoke detection and fire suppression. Following is the typical sequence of fire development: 1. Early stage — The small fire can easily be extinguished with water or other means. Little visible smoke occurs, although it is often sufficient to trigger a smoke alarm. 2. Smoldering phase — Visible, partly dense smoke occurs and large amounts of carbon monoxide (CO) may be produced by the incomplete combustion. The fire may still be easily controlled by a fire extinguisher. 3. Flaming phase — The open fire leaves precious little time for evacuation, and must effectively be fought by fire professionals. As combustion becomes more complete, less CO is produced, but relatively large amounts of carbon dioxide ensue. 4. Flashover — This is the transition between an open, flaming fire and a total fire. This explosive fire spread is caused when gases and aerosols produced in earlier phases ignite and spread the fire into all rooms already penetrated by the smoke gases. 5. Total fire — Once the flames reach larger building parts, there is little fire professionals can do and they typically concentrate their efforts on protecting neighboring buildings and fire sectors.

integrated to make the systems highly accurate and effective. Video systems are particularly effective in very large open buildings where smoke or gases are more difficult to detect. They can be very useful for industrial environments where radiant heat and smoke make other detection systems harder to implement. To date, VID systems are listed and approved by Nationally Recognized Testing Laboratory (NRTL) as supplemental fire detection and not primary life-safety systems. In most cases, the monitored area must be illuminated for video imaging technology to work effectively.

Optical Detection Technology (Forward Scatter) Forward scatter detectors typically are more accurate sensing light smoke particles, while backscatter technology better distinguishes lighter and darker particles.

Video is also increasingly popular in commercial settings that combine security needs with fire detection. In such systems, video signals can be transmitted simultaneously to the building security center and fire panel. Automatic flame detection technology can be combined with live video for immediate verification. And, by automatically recording video images for a prescribed period before and after an event, the systems are very valuable for investigation and future legal or security actions. Future smoke and fire detection systems may also be responsible for ongoing monitoring of air quality to direct heating, air conditioning and ventilation (HVAC) systems for utmost energy efficiency. In a fire, such systems could use voice commands and other means to automatically direct occupants away from danger and toward the best escape routes, rather than simply sounding a general alarm. Ron Ouimette is a Business Development Manager for Siemens’ Building Technologies Division. He can be reached at ron.ouimette@siemens.com.

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FIRE ISSUE

SALES TACTICS

FIRE

$ALE Fire and life safety remain important considerations for chief risk officers (CROs). Even so, strained budgets and other security issues on CROs’ minds present significant challenges when it comes to selling fire and life-safety solutions and services. With physical threats and digital attacks capturing headlines, fire safety is often pushed to the back burner as executives focus on more top-of-mind security issues like access control and information security.

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FIRE ISSUE

COMMERCIAL FIRE SALES

Fire security systems salespeople must sell the value of safety for an organization’s people, assets and facilities. Security professionals should be looking to provide assurance that in the event of a fire catastrophe, a customer’s facility is ready to detect and enable rapid reaction to the event.

As with any security equipment or service, selling proactive fire and lifesafety protection means convincing a CRO to invest in the mitigation of a threat he or she may not be able to envision. And if the CRO’s organization already meets the minimum for fire and lifesafety compliance, he or she may ask, “Where’s the fire?” when it comes to implementing holistic solutions. In response, your best retort may be to ask, “But what if there is a fire?” Lack of preparation contributes to fire losses of more than $2.3 billion annually, according to the Occupational Safety and Health Administration (OSHA). Organizations that proactively integrate fire and life-safety programs can mitigate those losses, which is a reality that should capture the attention of any bottomline-conscious CRO. And when the CRO understands that integrated solutions can protect the company’s investments as well as ensure compliance, mitigate risk and provide peace of mind, the solutions should nearly sell themselves. Unfortunately, where many fire

security sales teams fall short is in their approach. They lead with a technology and product sales pitch instead of selling true fire and life-safety solutions. Unable to make the intangibles of mitigated risk and peace of mind “real” for their customers, these parties show off the latest technologies and newest product features. But focusing on the tools isn’t always enough to justify an investment that protects a CRO’s business from a potentially devastating fire event. Adding to the disconnect between customers and their fire security providers, many organizations are focused solely on maintaining compliance with various fire regulations or standards. If a customer’s only goal for implementing a fire and life-safety program is to adhere to regulations, fire security professionals face the challenge of convincing the customer that a simple investment in equipment and maintenance may not truly secure the organization’s assets. Remember, compliance represents minimum

standards, and no one should accept the minimum when it comes to fire and life safety. So what’s the best approach? It’s simple. A fire security sales staff must sell the safety of an organization’s people, assets and facilities. We’re in the life-safety business, after all — not in the business of selling standalone equipment and technology that doesn’t address comprehensive safety. Security professionals should be looking to provide assurance that in the event of a fire catastrophe, a customer’s facility is ready to detect and enable rapid reaction to the event. MORE TO PROTECTION THAN PRODUCTS Establishing a proper fire security program begins with the common goal of creating the safest environment possible, and effective selling strategies follow suit. When sales professionals focus on mitigating risk and providing a safe place to do business, they position their organizations as strategic service partners instead of commodity providers. That’s the difference between providing peace of mind versus a piece of equipment. This approach also positions the security provider to deliver expert counsel about a range of topics, including technology, integration, monitoring, employee training and more. Being a strategic service provider means understanding the customer’s mindset when it comes to fire detection security, and offering solutions that solve problems in a cost-effective manner. Many customers are simply looking to meet compliance codes with the minimum spend possible. The customer wants to know how to make his or her existing equipment fit with the latest regulatory requirements without blowing the budget on a completely new system. These customers can benefit from partnering with a true fire security expert that can look at

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their facilities holistically and integrate old and new equipment from multiple manufacturers. Security integrators are uniquely positioned to function as that strategic expert. Tackling the challenge of fire security integration by purchasing equipment a la carte is not the most efficient use of a security budget, especially if the customer is working with one or more providers who aren’t viewing the system holistically. Customers who buy the bare minimum piece by piece end up with disparate systems installed in different ways. Components may be compliant, but there’s no rhyme or reason to the complete system and it often falls short of offering true protection. Bargain hunting for fire security equipment with multiple providers may present cost savings in the near term, but is more costly longterm because the installation and integration are not being managed strategically. In addition to cost-related issues, an ad-hoc compilation of equipment installed over time by multiple providers may actually increase risk. Fire security professionals from different companies address solutions in different ways. Such variability in standards, technologies and equipment placement represents increased risk. It also places the onus on the customer for maintenance, inspection, monitoring and upkeep — activities that should all be the responsibility of a true fire security expert. If something goes wrong before a fire, the customer doesn’t know who to call. In the event of a failed inspection — or worse, a failed response to a fire event — the customer is ultimately responsible because they are in charge of managing the system. Strategic fire security providers should offer to handle all equipment, installation and maintenance decisions in a manner that allows

customers to maintain compliance without worrying about the finer points of the system. A provider with monitoring capabilities can also look beyond the installation and show the customer how their investment will be supported every minute of every day. Even nonexclusive providers should make sure the security products and services they offer fit within the customer’s overarching fire and lifesafety program. ESTABLISHING UNIFORM STANDARDS As customers consider the gauntlet of compliance fire standards they must meet for detection, suppression, lighting, monitoring and extinguishers, details can quickly become confusing. Introduce the variability of widespread enterprises, including multiple buildings and municipalities, and keeping track of all the regulations can be mindboggling. Even different types of facilities within the same city — such as a warehouse and an office building — may have different fire detection standards and suppression requirements. Relying on National Fire Protection Association (NFPA) standards is a start, but customers looking to make the most of their investments should work with their fire security providers to strategically set proactive organizational standards. For a company with a few dozen or even a few thousand locations, determining how to fulfill the minimum fire standards for each facility can be more costly than treating all facilities the same. A strategic fire security provider should counsel these customers to establish their own set of standards that they can apply to every building in their network. Establishing an enterprise-wide standard that exceeds current regulations accomplishes two significant goals: 1) eliminating variability in the fire security system to provide better protection; 2) reducing complexity in maintenance, inspections and compliance across multiple facilities and local authorities having jurisdiction (AHJs).

Setting a high standard with each customer also builds confidence in the investment. A proactive organizational standard is defendable and gives the customer peace of mind — both key goals of a fire and life-safety sales process. The creation of such forwardthinking standards cannot be achieved by a focus on technology alone. Instead, the fire provider and organization must work to identify business and security needs and assess the customer’s unique environment. Through careful planning, a standardized platform can be created that works throughout the customer’s network of facilities and can be applied systematically everywhere the customer operates. Furthermore, for the security provider, these standards can be replicated within a given vertical and applied to similar organizations. Though setting standards may seem more complex then selling products on the front end, working with a customer to set enterprise-wide fire standards is often a simpler solution. Proactive organizational standards give customers the autonomy to keep their facilities safe and compliant regardless of regulation changes. Standards also act as roadmaps for a fire security service provider to execute everything from equipment installation to regular maintenance and monitoring. Customers that impose their own high standards take control of the critical security decisions instead of allowing a third party (like a local AHJ) to determine fire and life-safety standards for them. Once a provider analyzes a customer’s building environments and has a full picture of the risks and potential hazards a customer faces, it can apply detailed knowledge of technology to determine what level of standards meet or exceed compliance with NFPA and International Building Code (IBC) regulations. Because these overlapping regulations are often what confuse customers most in this highly regulated business, a strategic provider can add the most value by navigating the hierarchical nuances and working with

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FIRE ISSUE

COMMERCIAL FIRE SALES

A BASIC CHECKLIST FOR YOUR CLIENTS a customer to settle on one simplified set of standards that establishes a roadmap for the security program from integration to monitoring. EMPHASIZE THE ROI OF TECHNOLOGY Once a uniform standard is set, the road is paved for security providers to prove return on investment (ROI) for technology and equipment installations. Although leading a sales pitch with the latest and greatest products may be tempting, without a full understanding of a customer’s needs, the conversation is often irrelevant and, at best, misguided. Though technology and equipment will play a part in these early conversations, it’s best to keep the discussions high level and avoid referencing applications specific to the customer. After a set of simplified standards has been established, customers have a better understanding of how technology meets their needs, and these conversations can be applied to a series of instances throughout a customer’s entire building network. Likewise, implementation can be

Security providers should work with their customers to establish proactive organizational standards that meet or exceed regulations for their facility. A basic checklist for the end user to enact as uniform standards should include: Ensure all facilities have fire detection systems Replace old and obsolete systems Ensure all fire detection systems are inspected and tested annually, at a minimum Choose best-in-breed service maintenance and monitoring companies Invest in fire/life-safety emergency preparedness training for employees Conduct periodic emergency preparedness drills

more strategic when examined from a holistic viewpoint. Pairing detection devices with monitoring systems and life-safety notification systems, for example, becomes easier from a big-picture view once all facilities are considered through the lens of proactive organizational standards. Instead of selling security equipment piece by piece, the need for specific technology is dictated by a standard the customer has already adopted. Standards should also include guidelines about utilizing legacy and refurbished technology in a way that comprises a consummate system. Integrating new and legacy equipment into the same fire and life protection system can present risk if not done correctly — a challenge many providers face. A strategic provider can ensure integration of legacy equipment fits within a proactive organizational standard and gives their customer confidence their assets are safe. Leveraging legacy equipment when installing or upgrading a fire/life-safety system highlights another security industry issue: open- versus closed-system Lack of preparation contributes to fire losses of more than $2.3 billion annually, according to the Occupational Safety and Health Administration (OSHA). To help mitigate those losses, the sales process should include establishing a set of simplified standards that gives customers a better understanding of how technology can meet their needs. Those conversations can then be applied to a series of instances throughout a customer’s entire building network.

technology. In an industry fraught with variability, many distributors provide proprietary fire alarm equipment that only works within their own exclusive platforms or closed systems. Businesses can benefit, on the other hand, from open platforms that accommodate technology from multiple providers as well as legacy equipment. Working with open components makes a system more sustainable, as it doesn’t limit an organization to one brand or type of technology. To establish a flexible and scalable fire security program, choosing interoperable components is absolutely essential. Strategic providers must also look beyond the installation when pursuing a fire security sale. For example, alarms deliver limited return if not tied to monitoring. A security provider with its own monitoring capabilities or contracting with a proven and reliable third-party central station ensures a rapid, consistent response to a fire event. Additionally, an integrator that can also provide monitoring is familiar with the system and the customer’s organizational standards, ensuring seamless and strategic system execution.

Mike Dowling is Director, Fire Detection Solutions and Services, for Diebold. He can be contacted at michael.dowling@diebold.com.

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FIRE ISSUE

INSTALLATION CASE STUDY

Protecting Critical Infrastructure From Fire Peril

by the Editors of Security Sales & Integration

he building management team of a 450,000-square-foot Oakton, Va.-based facility housing a critical infrastructure of telecom equipment and data centers was confident that the fire alarm system they had installed in 1994 would provide the needed alerts to protect 2,500 employees in the event of an incident. And for nearly two decades, it had. However, time marches on for everyone … and every fire/life-safety system. As the system neared the end of its lifecycle, building managers for the facility ran into a problem. Many companies in the fire industry had undergone mergers and acquisitions, which resulted in one company owning the fire protection hardware and another company controlling the software of

the facility’s fire protection solution. When the system needed repair, neither company provided the necessary assistance to address the solution’s shortcomings. “There were issues with parts availability and with service,” says Laura Graham, who formerly handled facilities management at the data center. “The manufacturers didn’t have anyone left on staff that had the skills or knowledge required to work on the system.” Additionally, the system went off on a daily basis, and the fire marshal was strongly considering fining the building managers for the constant false alarms. Frustrated, facility owners realized it was time for a change. During that time, they also decided to renovate three wings in the building, which prompted building managers to seek a new fire alarm system.

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“From a property management standpoint, we just wanted a system that was fully operational where if there was a problem, it could be easily and costeffectively addressed,” Graham explains. With that, building managers of the global telecommunications firm’s Oakton site sought the help of Chantilly, Va.-based Haislip Corp., an electrical contractor and fire alarm dealer, to provide an addressable fire alarm solution with integrated voice evacuation with the ability to add mass notification functions. TECHNOLOGY, COST SAVINGS WIN BID Started by Pliny Haislip Jr., Haislip Corp. is a fully licensed, bonded and insured commercial electrical company that has provided high-end electrical and fire alarm services to customers in Maryland, Virginia and Washington, D.C. since 1969. In 1995, Pliny’s son,

James, a NICET Level III-certified technician, took over the company. Haislip’s 30 employees design, test, inspect, retrofit and install fire alarm systems for some 200 clients, including Dulles Int’l Airport, Fannie Mae, Hilton Hotels, Holiday Inn and Sheraton Hotels & Resorts. Regarding the data center project, Haislip Corp. was very familiar with the facility as the company performed the installation of its first fire alarm system. “When we got the job in 1994, it was through a cold call from the facility managers asking us to give them a bid,” says Haislip. “They already had the equipment, and they just needed someone to install it. We met their requirement to work in the facility, and we actually won the project.” After installing the fire alarm system, the building owners also asked Haislip to provide intrusion alarm and public address systems. “After we installed

To protect the critical infrastructure of telecom equipment and data centers inside a 450,000-square-foot Oakton, Va.-based facility, electrical company Haislip Corp. provided a Silent Knight fire alarm system. The solution included gas detectors, five fire alarm control panels and 40 remote modules to support fast data communications along the network’s extensive serial communications line, or S-Bus.

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the fire alarm system, we never left the building. All of a sudden, we were doing service calls for them. Then they had us put in a building automation system and it just kept on going,” he says. Although Haislip Corp. had previously performed installations at the facility, there was no guarantee it would be the provider of choice for the new system. Facility management required the new fire alarm solution have extreme reliability to address the mission-critical aspect of the facility’s operations, as well as ease of use and maintenance. Additionally, building owners needed the system to easily expand to adjust to any changes to the facility’s operational platforms with an option to add mass notification capabilities in the future. In preparing its bid, Haislip considered solutions from four vendors: Notifier by Honeywell, Siemens, Silent Knight by Honeywell and SimplexGrinnell. Realizing that one

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FIRE ISSUE

CRITICAL INFRASTRUCTURE FACILITY PROJECT

of the end user’s main concerns was controlling the software, Haislip Corp. selected Silent Knight’s Farenhyt system to help the company earn the bid to retrofit the facility. “The beauty of Silent Knight is that we would now control the software,” Haislip says. “We brought it all inhouse. Additionally, the Farenhyt line’s networking technology allowed us to win the project because it helped reduce our installation costs by $100,000.” DESIGNING AN EFFECTIVE SYSTEM Haislip designed the facility’s new system around the Farenhyt IFP2000VIP addressable fire alarm control panel with integrated voice evacuation functionality with the goal of satisfying anything the owner might want in the future. The IFP-2000VIP is scalable and capable of networking in a variety of ways, according to Haislip. “The system would give them enough room to grow so it wouldn’t give them any problems,” he says. The Oakton facility is a large, flat structure comprised of four buildings joined with an atrium in the center.

The facility uses beam detectors to conduct an annual fire alarm test.

Located throughout the facility are more atriums, making the intelligence of emergency communications a challenge. As a result, Haislip designed and installed a five-node fire alarm system with 859 initiating and 841 notification devices. Starting from the main panel, the network was able to reach out to four other fire alarm control panels in major areas of the complex. Forty remote modules were deployed to support fast data communications along the network’s extensive serial communications line, or S-Bus. The S-Bus allowed Haislip’s 10-man crew to remotely mount the panel, which reduced voltage on the lines. Haislip also incorporated Silent Knight’s VIP-125 amplifier, designed to simplify fire alarm voice evacuation system layout, to further mitigate the enormous scale of the project. The VIP125 contains its own power supply with battery backup and up to eight speaker circuits. Additionally, the 125 watts of amplification power produced by the amplifier can push audible communications through speakers to achieve mid- to large-scale fire alarm voice evacuation. Another benefit is that the amplifier can be mounted up to 6,000 feet away from the main control panel, which helped reduce speaker circuit wire runs. “The amplifiers were the big cost saving advantage over the competition,” Haislip explains. “We set remote amplifiers as needed throughout the complex and they ran off its independent V-Bus. Instead of bringing all the speaker leads back to a central location, using distributed

Haislip Corp. owner James Haislip designed the facility’s new system around Silent Knight by Honeywell’s Farenhyt IFP-2000VIP addressable fire alarm control panel.

amplification allowed us to send to remote amplifiers. A 1,500-foot run is now only 300 feet, so it saved a boatload in cabling. That’s where we saved the money, and it was all done to their modern V-Bus and S-Bus.” Three preaction suppression systems protect several data center laboratories and one large vault of telephone and data communications equipment within the facility. To coordinate the monitoring and response of all systems, the installation team tied the three individual systems to the Silent Knight network. Additionally, the crew connected two Honeywell infrared (IR) flame detectors, which monitor the building’s main generator and fuel tank, to the fire alarm network. TACKLING SYNCHRONIZATION CONCERNS Of course, a job that took a year to complete was not without its obstacles and glitches. During the renovation, the facility remained open for business. As a result, the installers had to work around employees’ schedules and during the off hours. Additionally, the fire marshal required that the old fire alarm system remained operational until he gave his approval for the new one to go live. “There came a point where we had to pull off the original equipment, such as the tampers, flows and duct detection. That was all carefully coordinated with the fire marshal,” says Haislip. “About

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MONITORING every SITUATION Nationwide, 24/7 Nationwide

At Security Central, we are conﬁdent that our ability to support your evolving needs can contribute to the success of your business. For more than 30 years, we’ve built our reputation as a leader in our industry by listening to our dealers and their customers. Those qualities have helped us grow into one of America’s largest nationwide central stations while remaining family-owned and independent. Simply put, we care about being the very best for you. Get more information on what Security Central can offer your business. You can depend on Security Central to protect your customers

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FIRE ISSUE

CRITICAL INFRASTRUCTURE FACILITY PROJECT

two-thirds of the way through the project, we were able to shut off the old system and everything was transferred to the new system.” As with many large-scale projects, specifications changed after the installation got underway. A number of test labs in the building required underfloor protection, necessitating remote annunciators. That specification was added well into the installation, but it was easy to add the extra equipment into the system. “It’s an affordable expansion — you only buy what you need,” says Haislip. “It was not expensive.” Additionally, standards set by the Americans with Disabilities Act (ADA) typically require all strobes to be seen within an area to be synchronized. However, the local fire marshal required all strobes on all levels of all buildings to be synchronized. With 1,500 strobes, that was quite the hurdle to overcome. Originally, the Haislip crew had the strobes synchronized by floor; however, from the outside of the building, it appeared as if fireworks were going off in the facility. “When you’re looking down the throat of a four-story atrium with four different wings, you’re seeing strobes from angles you would never imagine,” Haislip explains. “The fire marshal said, ‘It looks like the apocalypse in here.’ To synchronize the building, we had to add some wires to guarantee that the strobes pulsed at the same time.” There was also a problem with the beam detectors causing false alarms. Often, when sun hit the detectors, an alarm would set off throughout the entire facility. To counter this with the new system, Haislip put tunnel visors on the new beam detectors to block most of the sun’s rays. However, each year, the sun will hit the beam detectors on the same day and time during the spring. The facility now uses that time to conduct its annual fire alarm test to make sure the system is operating properly. WORKING THROUGH THE STORM Since the installation, the only

The facility is a large, flat structure comprised of four buildings joined with an atrium in the center. More atriums are located throughout the facility, which made the intelligibility of emergency communications a challenge.

subsequent action Haislip Corp. has had to take is replacing system batteries. A thorny issue became apparent due to the facility performing electrical service upgrades on the weekends that constantly shut down the fire alarm system. “They had the N+2 power grid in the building, which has the emergency generators backing up all this equipment, especially the fire alarm,” Haislip says. “But they were required to shut it all down, and the fire alarm system was literally running on its backup battery for the entire weekend. It was only required to be backed up for 24 hours, so they deep cycled these batteries and caused issues.” It’s a good thing that the crew replaced those batteries because a year after the installation was completed the Farenhyt system took center stage to prove its reliability. A heavy snowstorm that included thunder and lightning hit the Oakton area, and as a result the facility suffered a 36-hour power outage — only the second extensive power failure the site experienced in 30 years. Because the IFP-2000VIP has 24 hours of battery backup, the system was able to monitor the power fluctuations. “They had a brownout. The power company thought they were doing them a favor and turned some of the power back on,” according to Haislip. “When the power came back on, the fire alarm was operating on its battery, and because the generator sensed that battery power, it shut off.” As a result, the power fluctuations burned three electrical motors in the facility’s central plant causing them to smoke. Fortunately, the alarm system caught the smoke before the motors broke out into real flames. “It was the advanced acclimated smoke detection that we installed that potentially saved the facility from a lot of property damage,” says Haislip. “The detectors went off and set the building into alarm for about 15 minutes before the fire department go there. The bonus is that the alarm was going off all on battery, so we know that the system was thoroughly tested.”

/ SECURITYSALES.COM / MAY 2012

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FIRE ISSUE

Fire Side Chat

CO: STOPPING A SILENT KILLER

by Shane Clary

Shane Clary, Ph.D., has more than 37 years of security and fire alarm industry experience. He serves on a number of NFPA technical committees, and is Vice President of Codes and Standards Compliance for Pacheco, Calif.-headquartered Bay Alarm Co.

smclary@bayalarm.com

s an adjunct to their usual intrusion detection and fire alarm systems, more and more security and life-safety contractors are installing carbon monoxide (CO) alarms. While there is no current national requirement that these detectors be supervised by a central station, numerous system providers are offering this service. CO is an odorless, colorless and tasteless gas. It is also a very toxic substance that can render a person unconscious or dead, depending on the concentration that may be within a space. With the publication of the 2012 edition of the International Residential Code (IRC) by the International Code Council (ICC), and the requirement for CO alarms within all single and multiple family dwellings, there will be an increase in the number of locations that will request monitored CO detectors be installed. Knowing the requirements for monitoring these detectors, and making certain end users are also familiar with the requirements, will eliminate any confusion regarding the handling of these signals prior to when a signal is received. Let’s take a closer look.

DIFFERENT DEGREES OF CO POISONING CO will produce the following symptoms within a person, depending upon the parts per million (ppm) that have been inhaled and absorbed by the body.

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• 50 ppm — No adverse effects within eight hours of exposure • 200 ppm — Mild headache after two to three hours of exposure • 400 ppm — Headache and nausea after one to two hours of exposure • 800 ppm — Headache, dizziness and nausea after 45 minutes of exposure; unconsciousness after two hours • 1,000 ppm — Unconsciousness after one hour • 3,200 ppm — Unconscious after 30 minutes • 6,400 ppm — Unconscious and/or death after 15 minutes • 12,800 ppm — Unconscious and/or death after one to three minutes Every year there are a number of deaths and injuries from CO exposure. Most occur within residential occupancies. CO is the result of appliances or devices that produce products from combustion, such as natural gas, petroleum and wood. When there is direct injection of CO into a poorly ventilated space or through a leak within a heater or other fuel-burning appliance, the concentrations will begin to rise. When the ppm reach the levels as stated above, individuals within the space will become affected. One concern that has been voiced regarding the monitoring of CO detectors is that a person within premises where the gas is present might be unable to act in response to a call, thus requiring emergency responders to make a forced entry. How then is the monitoring of CO addressed?

4/26/12 3:15 PM

CO STANDARDS FOR MONITORING There are two standards that address the monitoring of CO detectors: • NFPA 720 — Standard for the Installation of Carbon Monoxide (CO) Detection and Warning Equipment, 2012 Edition • CSAA CS-CO-01 — Carbon Monoxide Supervising Station Response Standard, 2008 Edition The 2009 edition of NFPA (National Fire Protection Association) 720 first addressed the supervision and handling of CO signals from a protected premise. The Central Station Alarm Association (CSAA) wished to supplement the requirements within 720 with additional information for central station operators. Chapter 7, Off-Premises Signal Transmission within NFPA 720 details requirements that are to be followed. Section 7.2.1.1 requires that a CO alarm signal shall take precedence over supervisory or trouble signals. Section 7.2.1.2.1 requires that the actuation of a CO detector shall be indicated as a CO alarm signal. The handling of the signal by the supervising station is addressed within the following section: 7.2.2 Supervising Station: Upon receipt of a carbon monoxide alarm signal, supervising station personnel shall perform the following actions in the order listed: (1) Where required by the emergency response agency, immediately retransmit indication of the carbon monoxide alarm signal to the communications center. (2) Contact the responsible party(s) in accordance with the notification plan. The notification plan is covered within the annex to this section: The supervising station should have a notification plan on file, the manufacturer’s published instructions, and multiple points of contact with the subscriber to take action in accordance with the manufacturer’s published instructions. Within the manufacturer’s instructions are guidelines to be followed if a detector should be activated. These instructions typically advise the end user to immediately move to a spot where fresh air is available, preferably outdoors. Opening windows may also be advised. These steps generally eliminate the immediate threat. CSAA desired additional language as to how to query and instruct occupants within a premise than NFPA 720 provided. Section 4.0 covers Supervising Station Procedures. Subsection 4.1 addresses if someone answers the telephone and 4.2 if there is no response. Subsection 4.3 covers if TOP PROSPECTS an answering machine or FOR CO DETECTION voicemail picks up. 4.0 Supervising Single-family dwellings Station Procedure: Hotels and motels Unless otherwise Daycare centers required by the Schools emergency response Nursing homes and hospitals agency, upon receipt at Parking garages

the supervising station of a CO alarm signal, with or without restoral signal, the supervising station shall first call the premises and then proceed as shown below. 4.1 If Someone Answers the Telephone: • 4.1.1 — The occupants shall be instructed to leave the premises and move to fresh air. • 4.1.2 — The supervising station shall ask the following questions to the individual answering the telephone: a) Are all the occupants accounted for and are they out of the premises? b) Is anyone nauseous, ill, have a headache or dizzy? • 4.1.3 — The supervising station shall instruct the occupants not to re-enter the premises until cleared by the responding fire service. • 4.1.4 — The supervising station shall then immediately call the appropriate emergency response agency to inform them of the alarm. The emergency response agency shall be informed that the occupants answered the telephone, were told to leave the premises and of any reported symptoms. 4.2 If No One Answers the Telephone: The supervising station shall then immediately call the appropriate emergency agency and report that a CO alarm was received from a particular premises and were unable to reach an occupant. 4.3 In the case of 4.2, after dispatch the supervising station shall contact the responsible party(s) in accordance with the notification plan. The requirements for answering machines and voicemail are similar to Sections 4.2 and 4.3. AVERT FALSE ALARMS, BASHED DOORS While NFPA 720 has been adopted by most states, CSAA CSCO-01 has not. As both are endorsed by the American National Standards Institute (ANSI), they may be viewed as standards of care. Central station operators should check with each AHJ to verify how they want CO signals handled within their respective jurisdictions. The central station should be prepared to provide a copy of the CSAA standard to the AHJ for review and adoption. While most fire departments respond to CO alarms at this time, a number will refer the call to the local natural gas provider. Where it comes to monitored CO detection systems, particularly residential occupancies, I recommend installing a Knox-Box (knoxbox.com) so responding authorities may gain access to the premise without having to break down a door. These boxes can store keys or access cards for easy emergency entry. While the present generation of CO detectors are immune to false or unwanted alarms they can still occur from time to time. Proper placement of the detector(s) will help keep them from being subject to nuisance activations. See the sidebar box for examples of the types of locations suitable for CO detection. Next month, we’ll take a look at more specifics pertaining to CO detector placement.

Assembly occupancies MAY 2012 / SECURITYSALES.COM /

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FIRE ISSUE

HE ESSENTIALS

FIRE/LIFE-SAFETY PRODUCTS Potter Electric PFC Series Fire Alarm Panels

Potter Electric Signal Co. of St. Louis has expanded its PFC Series line of IP-based addressable fire alarm panels to include advanced technology, such as system-wide synchronization, Ethernet connection and E-mail communication capability. The PFC-6200 is a 127-point panel expandable up to 254 points. The PFC-6800 is expandable up to 1,016 points. LAN and WAN connectivity allow for large-scale network applications. E-mail capability provides users with an immediate and detailed history and detector status report sent directly to a computer or mobile phone. securitysales.com/FREEInfo/15400

Silent Knight Farenhyt ECS System

Silent Knight by Honeywell of Northford, Conn., introduces the Farenhyt emergency communications system (ECS), which integrates mass notification capabilities with fire alarm technology. The system delivers real-time, intelligible communications over a completely supervised system that meets the latest NFPA 72, UL 2572 and Department of Defense (DoD) standards. Additionally, the control panels include customizable switches for as many as 15 prerecorded messages and a microphone for live paging. securitysales.com/FREEInfo/15401

System Sensor 5151 Conventional Heat Detector

System Sensor of St. Charles, Ill., releases the 5151 heat detector, a conventional, two-wire device. The product is a combination fixed and rate-of-rise thermal detector designed to provide open-area protection with 50-foot spacing capability as approved by UL 521. For local alarm indication, it also includes two LEDs on each detector for full 360° visibility. The 5151 replaces the 5451 heat detector and carries the same electrical properties in a newer, more modern package, according to the company. securitysales.com/FREEInfo/15402

DMP 463G Digital Communicator

Digital Monitoring Products (DMP) of Springfield, Mo., announces that its 463G digital cellular communicator is now compatible with the company’s XR100 Series access, burglary and fire panel. The 436G, a plug-in expansion card, contains an onboard GSM/GPRS communications module that transmits alarm messages to DMP central station receivers over the digital GSM/GPRS network. The UL-Listed product can be used as the primary communication path and/or as a standalone communicator without the need for a backup for commercial fire applications when combined with the XR100 Series panels. securitysales.com/FREEInfo/15403

Talk-A-Phone’s New Eco Emergency Phone Tower

Talk-A-Phone of Niles, Ill., presents the ETP-MTE Eco emergency phone tower, which stands nine feet and features an LED blue light that is always lit. Designed with a lightweight aluminum construction for a reduced ecological footprint, the tower also has multilayer powder coating to achieve nearzero waste and volatile organic compound (VOC) emissions. Modular construction allows for easy upgrades of the tower, while the optional internal mounting plates and shelves provide clean mounting solutions for accessories, according to the company. securitysales.com/FREEInfo/15404

For the latest products, sign up for SSI’s Security Equipment E-lert at securitysales.com.

/ SECURITYSALES.COM / MAY 2012

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FIRE ISSUE

THE ESSENTIALS GAI-Tronics Wi-Fi VoIP Emergency Telephone

The ADA-compliant Red Alert Wi-Fi VoIP emergency hands-free telephone by GAI-Tronics Corp., of Mohnton, Pa., provides point-topoint communications between personnel over an existing wireless local area network (WLAN). The product features alarm reporting that enables system supervisors to monitor the telephoneâ&#x20AC;&#x2122;s activity and address caller needs or maintenance issues immediately. It will monitor its own health and report via E-mail, or via Syslog, failures such as stuck buttons, speaker/microphone malfunction, configuration error, or power loss/reset, according to the company. securitysales.com/FREEInfo/15405

Fike Integrated Voice Messaging System

FIRE/LIFE-SAFETY PRODUCTS Edwards Site Monitor Graphical User Interface

Edwards of Bradenton, Fla., a unit of UTC Climate, Controls & Security, introduces the Site Monitor incident status software, which is compatible with VS Series fire alarm control panels. The product captures, prioritizes and directs system events for up to 1,000 VS Series panels, ensuring correct and on-time response from the appropriate authority, according to the company. Site Monitor can be configured to generate E-mail notifications to specific recipient groups. The solution is available in two versions: A graphical version will display location by map or photo, and a text-based version. securitysales.com/FREEInfo/15406

Fike Alarm Systems of Blue Springs, Mo., has expanded its integrated voice messaging system to include an optional local operating console (LOC) or remote microphone. The UL 2572-Listed product includes integrated backup amplifiers for built-in redundancy, virtually unlimited messaging capability and multiple levels of fault protection. The LOC allows users to remotely page and/or initiate prerecorded messages from a remote location. The system can also be used with the companyâ&#x20AC;&#x2122;s CyberCat line of fire alarm products to provide voice capabilities within smaller applications. securitysales.com/FREEInfo/15407

Telguard TG-7FS Commercial Fire Cellular Communicator

The TG-7FS sole path cellular alarm communicator for commercial fire by Telguard of Atlanta, a division of Telular Corp., is available for 3G/4G networks. Compliant with section 26.6.3.1 of NFPA 72, 2010, the product can serve as the primary communications path for commercial fire alarm systems, replacing all of the landlines users dedicate to their master control unit. It provides a signal to central stations within five minutes of an outage, according to the company. Additionally, the product can deliver three layers of redundancy using 3G HSPA-based networks, GPRS network and SMS. securitysales.com/FREEInfo/15408

Gamewell-FCI E3 Series Combo Fire Alarm and ECS System

The E3 Series fire alarm and emergency communications system (ECS) from Gamewell-FCI by Honeywell of Northford, Conn., provides advanced fire protection and autonomous control of building mass notification. The system integrates key emergency communication system (ECS) components, such as local operating consoles (LOC), LED signage, specialized speakers and strobes, giant outside voice systems, and interactive graphic monitoring displays (both stationary and mobile). The networking of all components, including control panels and devices, requires only one pair of unshielded twisted wire or fiber-optic cable, according to the company. securitysales.com/FREEInfo/15409

/ SECURITYSALES.COM / MAY 2012

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Building Your Business

CORPORATION VS. LLC: WHICH IS BEST FOR YOUR SECURITY BUSINESS? by Mitch Reitman Mitch Reitman is managing principal of Fort Worth, Texas-based Security Industry Capital (SIC) Consulting, which provides financial services to security alarm companies in 23 states and Canada.

mreitman@sicc.us

Like all firms, installing security contractors must decide on the legal structure of their business. Until recently, most chose between sole proprietor, partnership and incorporation. Now, more owners are choosing to be a limited liability company. Learn the advantages and disadvantages.

orming a business entity is fairly easy, but each type of entity has its strengths and weaknesses. There is no question that operating as a sole proprietorship is not a good idea. It is important to form an entity that is separate from the owners for legal, tax and other considerations. A corporation is by far the most common form of business entity for installing security companies, but limited liability companies (LLCs) are increasingly receiving attention from business owners. The following is a brief definition of each entity and some advantages and disadvantages for each. Please keep in mind that the information is from a tax and accounting standpoint only and does not consider legal ramifications. For legal advice be sure to consult with an attorney. Every situation is unique. It is also important to consult with a competent tax professional before deciding upon a particular type of entity. CONSIDERING INCORPORATION Corporations are distinct legal entities. They have shareholders and report their income and expense as a separate entity. Corporations that do not elect to become Small Business Corporations (S corporations) are referred to as C corporations, and generally pay tax on their income at the corporate level. This can cause what is referred to as double taxation. A C corporation pays tax on its income. When the residual profits (retained earnings) are distributed to the shareholders, they are taxed to the shareholders as dividends. Consider the following example: The C corporation has earnings of $100,000 and pays tax of $16,750. This leaves $83,250 to be distributed to the shareholders. The shareholders would then pay tax on

/ SECURITYSALES.COM / MAY 2012

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the dividends. With the maximum individual tax rate at 35%, this could mean an additional $29,000 or more in taxes. Such a scenario can result in total tax rates approaching 60% for corporations earning more than $300,000. Many C corporations avoid taxation at the corporate level by paying a “bonus” to the stockholder(s) at year end roughly equivalent to the corporate earnings. The bonus is treated as salary expense, thereby reducing the corporate earnings to zero and the stockholder(s) report the amount as wages. This approach is only a short-term solution for a security company. As alarm company owners know — and, unfortunately, few tax practitioners understand — the recurring monthly revenue (RMR) of a security company may be its greatest asset. When an alarm company sells these assets, the proceeds of the sale are income to the C corporation. For a company with RMR totaling $83,000, the proceeds would probably be around $3 million. The corporate tax on $3 million is approximately $1.02 million. This would leave nearly $1.98 million to be distributed to the owner(s) (shareholders). The tax on dividends of $1.98 million could be as much as

4/26/12 3:15 PM

Since an S corporation is typically not a taxable entity, its taxable income is “passed through” to its shareholders, who report the income on their personal tax returns.

$670,000 for a total of $1.69 million or 56% of the proceeds. One way to avoid the double taxation is for the C corporation to elect S corporation status. By virtue of its S corporation status, a small business corporation is typically not considered a taxable entity. There are some restrictions on S corporations. For example, S corporation stockholders must typically be individuals (no corporations or certain other entities), must have one class of stock (with some exceptions) and may not have more than 100 shareholders (with some exceptions). Since an S corporation is typically not a taxable entity, its taxable income is “passed through” to its shareholders, who report the income on their personal tax returns. Not only does this eliminate the end of year bonus issues discussed above, it presents a huge advantage if RMR is sold. Assuming the same RMR sale discussed above, the S corporation would pay no tax and pass the proceeds to its shareholder(s). The RMR would be considered a capital asset and the gain on its sale would be substantially a long-term capital gain. Currently, long-term capital gains are taxed at 15%, so the tax bill could be as low as $450,000. Another advantage of S corporations is that its net income is not considered “employment income” to shareholders. This means it is not subject to “self-employment” tax (Social Security and Medicare), which is substantial at 15.3%. It is important to remember that an employee/shareholder cannot manipulate this situation by taking a nominal salary so as to avoid any employment taxes. The Internal Revenue Service reviews the wages paid to owners of S Corporations to determine if the salary is reasonable by industry standards. Shareholder(s)/employees must take a reasonable salary to avoid scrutiny by the IRS. The earnings of a S corporation must also be distributed to

the shareholders based upon their percentage of ownership. This is an issue that can usually be overcome by proper tax planning. For the stockholders of a C corporation to elect to be an S corporation is relatively easy, but it is very important to consult with a competent tax advisor before making the plunge. The election generally must be made by the 15th day of the third month of the corporation’s tax year to be effective. S corporations must also typically have calendar years as fiscal years are generally not allowed. Electing to be a S corporation may cause the corporation to lose certain tax breaks, such as the carry forward of net operating losses. So, again, consult with a competent tax advisor before electing S status. ABC’S OF SELECTING LLC STATUS LLCs are the “new thing” in entities. They are easier to form and operate because in most states there are no restrictions on their ownership. An LLC is not subject to the formalities by which corporations must abide. LLCs have members as opposed to shareholders. An LLC may be managed by its members, which means the owners operate the company. In a member-managed LLC, responsibility is delegated to managers who do not have to be owners of the LLC. At present, the IRS does not place any restrictions on the distribution of profits by an LLC; profits do not necessarily have to be distributed based upon percentage of ownership as in a S corporation. The owners of an LLC, especially a sole owner/operator, must report the profits as self-employment income and generally must pay self-employment tax on all of the earnings of the LLC. There is no opportunity to pay a salary and let the excess earnings “pass through.” Also, a single-member LLC is substantially treated as a sole proprietorship for tax purposes, and the member must report the income and expense on his/her individual tax return. LLCs can elect to be treated as corporations, but this makes them subject to the tax issues discussed previously regarding corporations. While LLCs are easier to form and manage, they typically do not provide significant advantages to security companies owned and managed by one to four owners/employees. As LLCs become more prevalent, Congress may place more regulations and other requirements on them, further eroding any advantages they may have. It is important to consult with an informed, competent, tax advisor regarding the best entity for your business, but the S corporation is the best entity for most security businesses.

MAY 2012 / SECURITYSALES.COM /

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THE BIG IDEA Ron Davis is a SSI Hall of Fame inductee and President of Davis Mergers and Acquisitions Group Inc. Also known as The Graybeards, the company is active in acquisitions and mergers exclusively in the alarm business.

rdavis@gratbeardsrus.com

The Art of Learning From the Peers Among You

long with serving as president of Louisiana Life Safety & Security Association (LLSSA), Don Wilkins Jr., is a special systems engineer for Facility Automation Inc. in Baton Rouge, La. As mentioned in last month’s column, I was recently a guest speaker at the LLSSA winter meeting where I spent some time with Wilkins discussing the association, as well as the future of the industry. When I pursued Wilkins’ great idea, he paused for a moment, saying, “Well, it’s not earth-shattering … ” Take a moment to review his idea. He said he became actively involved in LLSSA, not simply to share his own ideas, but mostly because it afforded him the opportunity to hear and learn from the legions of other successful alarm industry pros. I have some news for Wilkins. His great idea really is thought provoking because it comes from someone whose first concept of belonging to an industry association is one of participation, rather than singular leadership. Allow me to explain. Most of the industry executives I speak to tell me they join associations and participate primarily to “give back” to the industry. It’s their way of paying their dues. Wilkins, on the other hand, has taken a different tack. He’s in that role primarily to become “actively involved” in not just the association, but with all of the thinkers and people who he comes in contact with during the time he spends on association business. Wilkins’ approach, and his professionalism, has earned him a great deal of respect. I heard it firsthand from LLSSA members at the meeting, including the State Fire Marshal I sat with during the luncheon. To emphasize Wilkins’ approach, here’s an interesting concept summed up in this simple parable: If I give you a dollar, and you give me a dollar, all we’ve done is exchange dollars. However, if I give you an idea and you give me an idea, we both grow immeasurably! The sharing of ideas and philosophies in a positive environ-

IDEA

OF THE MONTH If you had just one really great idea you could share with the alarm industry, what would it be? This month’s great idea comes from Don Wilkins Jr., who is president of Louisiana Life Safety & Security Association (LLSSA).

Wilkin’s great idea: Keep an open ear, and an open mind, to understand philosophies of the experienced, forward-thinking individuals who contribute to the alarm industry. ment, such as an association meeting, allow members and executives to freely share information about their companies and business management practices. In a unique way, it’s a kind of force multiplier. GIVE AND TAKE Here is an idea you might try at your next association meeting; see if you have some fun with it: Everyone should come to the meeting with an idea that they would like to share. If the group is small enough, have each person spend a minute or two just sharing the idea with no discussion. You’ll all know if the ideas were good by how many people were taking notes. If they’re great, you’ll see people in the audience not only taking notes, but nodding their heads positively and smiling. An association gathering can be a marvelous exchange for not only ideas and theories, but for philosophical expressions of your core beliefs about the industry. Try it at your next meeting, or if you’d like, just try it with a friend at lunch sometime. You might eventually hook up with people who get together for nothing but idea exchanges. The beauty of it is that everyone grows as a result. I think Wilkins knew this when he shared his great idea with me, and frankly, I do find it “earth-shattering.”

/ SECURITYSALES.COM / MAY 2012

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SS0512webnewsanalysis

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||| LEGAL BRIEFING |||

GUARDING AGAINST SUBSCRIBER LAWSUITS

by Ken Kirschenbaum

Ken Kirschenbaum has been a recognized counsel to the alarm industry for 35 years and is principal of Kirschenbaum & Kirschenbaum, P.C. (www.kirschenbaumesq.com). His team of attorneys, which includes daughter Jennifer, specialize in transactional, defense litigation, regulatory compliance and collection matters. The opinions expressed in this column are not necessarily those of SSI, and not intended as legal advice.

larm companies are an identifiable target when a subscriber suffers a loss. When the investigators and damage control people arrive, they see lawn signs, window stickers, stickers on panels, and alarm equipment hanging on windows, doors and walls. The subscriber had a loss; the homeowner’s policy covers the loss, or not, and somebody has to pay. May as well be the alarm company. They figure, what the heck was the alarm for anyway? The trouble with providing alarm services is you might end up being the target for a loss you certainly did not cause, and probably didn’t contribute to either. The loss could be the result of illegal activity, a fire caused intentionally or from an unknown source, breaking pipes, heat, cold, etc. Every cause other than a loss caused by faulty alarm equipment or wiring — that I’ve yet to encounter. So you get sued because your system or service failed to prevent a loss. You could and should have installed it better or responded faster. A lot of alarm companies can go through an entire lifetime without any lawsuits. The problem is that it only takes one. Defending a lawsuit can cost anywhere from a few thousand to a few hundredthousand dollars. If you get tagged with a judgment, the loss can be from a few hundred to a few million dollars. The average alarm company, even if it could afford the defense cost, doesn’t want to have to. That’s why errors and omission insurance is so important. While I am on that kick, please check all of your insurance. Make sure your general liability includes errors and omission coverage and that it’s written by an insurance company that understands the alarm industry. I just received a denial of coverage from a so-called insurance company with an alarm program. This provider had the audacity to deny coverage with a letter from its attorneys that was too complicated for me to understand, just an old country lawyer, but seemed to say that since there was no “bodily injury or property damage” there wasn’t any coverage. Well in alarm defense cases there’s often a burglary loss, and that’s not bodily injury or property damage. And, the alarm company expects coverage when sued for negligence and breach of contract. Check your coverage and make sure your carrier is going to be there when you need it, not dancing around figuring out how to get out of covering the claim. There is little you can do to escape lawsuits other than having the proper alarm contracts and performing your services to the best of your ability. Being responsive

A lot of alarm companies can go through an entire lifetime without any lawsuits. The problem is that it only takes one. That’s why errors and omission insurance is so important. to your subscriber’s requests for assistance, service and information is also helpful. If there is a loss, however, you should immediately report that potential claim to the carrier. Should you hear from the subscriber asking for information about the alarm, you should insist that your carrier engage counsel immediately to assist you with any response. You paid for insurance and you shouldn’t hesitate asking for coverage. If the carrier assigns an attorney who doesn’t know the alarm industry, don’t be shy about demanding another attorney who does. You can ask for specific counsel, though the carrier does have the right to select counsel, but only if competent.

SECURITY SALES & INTEGRATION (ISSN 1539-0071) (USPS 511-590) is published monthly by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. Periodicals postage paid at Torrance, California 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to Security Sales, P.O. Box 1068 Skokie, IL 60076-8068. Please allow 4 to 6 weeks for address changes to take effect. Subscription Prices - United States $96 per year; Canada $96 per year; Foreign $140 per year. Single copy price - $8; Fact Book - $35. Please allow 4 to 6 weeks to receive your first issue. Please address Editorial and Advertising correspondence to the Executive Offices at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission.

ken@kirschenbaumesq.com

/ SECURITYSALES.COM / MAY 2012

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