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The limitation of liability or waiver language in a contract for alarm monitoring might be able to defeat a negligence claim. (Photo: Thinkstock)

This story is reprinted with permission from FC&&S Legal, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

Most businesses and many homeowners have alarm systems that include continuous monitoring. And the customers of the alarm companies rely on the systems to give them warnings of intruders or other problems. But what happens when the alarm system malfunctions, the business owner’s property is stolen, and the insurance doesn’t cover the claim? Can the business owner recover from the alarm company for negligence or does the contract’s limitation of liability language prevail?


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