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Sample Service Level Agreement Template

Sample Service Level Agreement Template Service Agreement Sample Service Level Agreement Template

Marilyn Ries June 24, 2019 Service Agreement

Insurance clauses are not necessarily standard, but they are not unusual. Customers may wish to specify what insurance is required, and in what amounts, for comfort that the service provider can meet its indemnity obligations. If the agreement requires insurance, make sure the specified coverage and amounts are reasonable ($1-2 million general liability and errors and omissions should be sufficient in most circumstances). Review the insurance provisions carefully, and seek feedback from the insurer.

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Businesses often use MSAs to help make contract negotiations simpler. This agreement lets both companies spend their time discussing the terms of the deal. Then, they can proceed with the work outlined in the agreement. If you don`t have an MSA, the customers and the company can still work through issues, but there are big concerns that might derail the contract. Having an MSA before having a specific contract lets companies focus on what their particular contractual issues are, such as the time frame and the price, for when the contract actually arises.

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The agreement should also indicate how often the client is required to make payments, as well as the acceptable methods of payment (for example, bank wire, money order, credit card, or PayPal). Furthermore, your service contract should make it clear how expenses will be allocated between the parties. Usually, the client will expect you to cover all expenses involved in delivering the services (including costs for parts, labor, and so forth); however, depending on the nature of your business, the client might reasonably agree to be responsible for certain expenses. You can negotiate to have the client pay for these expenses either ahead of time or as a reimbursement to the company.

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It’s customary for service agreements to include provisions with respect to the protection of confidential information. This includes the safeguard of your business strategies, client lists, supplier information, trade secrets, and so forth. Note that a client might request that you adjust the confidentiality provisions so that they’re applied mutually, which is usually acceptable so long as all of your employees, contractors, and everyone else involved in your business handle all client information in compliance with the provision.

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