NBFAA Unveils New Member Benefit - Extended Warranty
Insurance Program For Commercial Alarm Dealers -
With Member-Exclusive Rates
QOMLINQ Provides NBFAA Members with New Warranty Service Profit Center

Silver Spring, MD (December 3, 2004) - The National Burglar & Fire Alarm Association (NBFAA) announces its endorsement of the first insured extended warranty program for commercial alarm systems. The program is designed to provide commercial alarm dealers with the ability to offer their customers five years of extended warranty coverage including parts and labor, on new or existing alarm systems. The program is offered through Security Finance Associate's Warranty Division in conjunction with QOMLINQ, LLC, Client Services Network, Inc. and Heritage Warranty.

The new Extended Warranty Program allows commercial alarm dealers to offer their customers extended warranty coverage without incurring any financial risk. The program is backed by insurance coverage, protecting dealers from financial exposure and contingent liability associated with warranty coverage that some dealers offer on a self-insured basis. The customer pays for the extended warranty coverage and the dealer has no liability if the customer fails to pay for any reason. There is no deductible or out-of-pocket expense to the customer. The monthly payment is collected along with the monitoring service fee and may also be financed with most equipment leases.

NBFAA members receive this special extended warranty coverage at exclusive guaranteed lower rates, which allows dealers to mark up the retail price to provide a new source of monthly recurring revenue. The potential to add to profits from service calls is increased because the insurance company reimburses dealers for hourly labor costs and parts. The warranty covers system failures resulting from equipment failures, defects in installation and failures caused by normal wear and tear. The plan even covers labor during the O.E.M. warranty period. The installation defect coverage is significant because disputes with customers over installation defects are not covered under a dealer's traditional liability coverage when there is no property or bodily injury loss, which is the case in most installation disputes.

The cost of the coverage to dealers is extremely reasonable, which allows the Extended Warranty Plan to be incorporated into an overall maintenance plan many dealers currently offer their customers. Once the warranty is included, the financial risks for parts and labor under the integrated plan are covered by the carrier.

"Extended Warranty coverage on high-tech electronics is very prevalent in every industry," said Tony Smith of Security Finance Associates, who is the plan coordinator for the NBFAA. "Millions of warranties are being sold to consumers nationally each year, due to the fact that customers have no self-help remedies when it comes to repairing electronics, customers don't like the surprises that come with big repair bills, and they would rather amortize their repair cost over the life of their contract, and electronic retailers have discovered that their customers like the protection offered by the coverage - and they like the additional revenue stream.

"Plus, the dealer who sells the system gets to perform the repairs for the warranty company, turning each service call into a profit rather than a liability," he added.

For more information on the Extended Warranty Program or to enroll contact Tony Smith at tsmith@securityfinance.com or call 626-795-9199.

The National Burglar and Fire Alarm Association (NBFAA) is the nation's oldest and largest association dedicated to representing, promoting, and supporting the electronic life safety, security, and systems industry. Member companies specialize in a wide spectrum of services to commercial and residential consumers, including security and fire alarms, monitoring, CCTV, and access control. Working with a federation of state associations, NBFAA provides government advocacy and delivers timely information, professional development tools, products and services to its members. The NBFAA may be reached at 301-585-1855 or on the web at www.alarm.org.

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