Are electronic signatures valid?

Yes. Electronic signatures satisfy legal requirements under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes in most U.S. jurisdictions when intent, consent, attribution, and retention are demonstrable.

Do BISAs need notarization or witnesses?

Generally no. Standard BISAs do not require notarization or witnesses; exceptions exist for documents that affect real property or require notarized acknowledgements under state law.

When is a BAA required?

If the agreement covers Protected Health Information, include a HIPAA Business Associate Addendum and ensure compliance with HIPAA privacy and security rules, including 45 CFR §164.530(j) for record retention.

What if the vendor refuses key clauses?

Negotiate measurable alternatives, document compensating controls, and consider limiting scope or requiring periodic third-party attestations if contractual indemnities are not acceptable.

How are breaches reported and tracked?

Define a short notification window (e.g., 72 hours), required information, remediation plan submission timelines, and a process for joint investigation and regulatory reporting.

Can the agreement be revoked or amended?

Yes. Include amendment and termination clauses with clear notice periods, obligations on data return or deletion, and post-termination access restrictions to avoid lingering exposure.

Electronic Signature
Templates
Miscellaneous
Business Information Security Agreement

Business Information Security Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Business Information Security Agreement

Parties and Effective Date

Client Name Client Address Service Provider Name Service Provider Address

Effective Date:

Recitals

WHEREAS, Client Name: engages Service Provider Name: to perform services that involve access to Client's information systems and data; and

WHEREAS, the parties desire to set forth controls, responsibilities and procedures to protect confidentiality, integrity and availability of information and to define obligations in the event of security incidents;

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties agree as follows.

Scope of Work

The Provider shall perform the security-related services and obligations described below. The scope identifies systems, data classifications, and deliverables to which this Agreement applies.

Describe Scope of Work

Payment Terms

In consideration for the services described in the Scope of Work, Client will pay Provider the fees set forth below.

Total Fee or Rate Payment Schedule Late Payment Fee

Provider shall invoice Client in accordance with the Payment Schedule. Unless otherwise agreed, undisputed invoices shall be due and payable within thirty (30) days of receipt. Provider may suspend performance for amounts overdue following ten (10) days' written notice.

Term and Termination

This Agreement commences on the Start Date below and continues until the End Date below unless earlier terminated in accordance with this Section.

Start Date: End Date:

Notice Period for Termination Without Cause

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure within thirty (30) days after receipt of written notice specifying the breach. Termination does not relieve Client of payment obligations for services performed prior to termination.

Confidentiality and Data Protection

"Confidential Information" means any non-public information provided by one party to the other in connection with this Agreement that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information. Confidential Information includes but is not limited to business data, client records, authentication credentials, system architecture, and personal data.

Exceptions to Confidential Information (if any)

The receiving party shall: (a) use Confidential Information only to perform obligations under this Agreement; (b) restrict access to employees and contractors with a need to know and require them to be bound by confidentiality obligations at least as protective as this Agreement; and (c) apply reasonable administrative, physical and technical safeguards to protect Confidential Information.

Confidentiality Duration

In the event of a confirmed security breach affecting Client data, Provider shall notify Client without undue delay and, in any case, within the timeframe set forth below. Notification shall include a description of the nature and scope of the breach, the categories of data affected, and the corrective actions taken.

Breach Notification Timeline

Security Controls

Provider shall implement and maintain reasonable security controls to safeguard Client data. The following minimum controls shall apply:

Encryption of data at rest
Encryption of data in transit
Role-based access controls and least privilege
Audit logging and retention of security-relevant events
Regular employee security awareness training

Additional Controls or Requirements

Audit and Compliance

Client may, upon reasonable prior written notice and during normal business hours, conduct audits or inspections to verify Provider's compliance with the terms of this Agreement. Audit activities shall be conducted in a manner that minimizes disruption to Provider's operations.

Audit Frequency

Indemnification and Liability

Provider shall indemnify and hold harmless Client from and against any third-party claims arising from Provider's negligent acts or willful misconduct in the performance of obligations under this Agreement. Except for breaches of confidentiality and indemnification obligations, neither party's aggregate liability shall exceed the total fees paid by Client under this Agreement during the twelve (12) months preceding the claim.

Governing Law

Choice of Law

The laws of the state specified above govern this Agreement without regard to conflict-of-laws principles.

Entire Agreement; Amendments

This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior understandings. Any amendment or waiver must be in writing and signed by authorized representatives of both parties.

Notices and Contacts

Client Contact Name Client Contact Email / Phone Provider Contact Name Provider Contact Email / Phone

Signatures

Client:

By:

Date:

Service Provider:

By:

Date:

What a Business Information Security Agreement Is and why it matters

A Business Information Security Agreement (BISA) is a written contract that sets expectations between parties about the handling, protection, and permitted use of confidential or regulated business data. Typical BISAs define data types covered, access controls, encryption and transport standards, incident notification timelines, audit rights, and contractual remedies for breaches. For cross-border or interstate transactions, BISAs are executed as electronic or paper contracts and must meet e-signature validity tests under federal ESIGN standards (15 U.S.C. ch. 96) and state UETA rules where applicable to ensure enforceability.

Why include a BISA in vendor and partner relationships

A clear BISA reduces legal exposure by allocating responsibility for data security, documenting controls, and setting notification and remediation steps; it also supports regulatory compliance with frameworks such as HIPAA, GLBA, and federal recordkeeping rules.

Who commonly negotiates and signs a Business Information Security Agreement

Typical participants are internal teams and external partners who exchange or process regulated or sensitive information under contractual arrangements.

Information security teams and CISOs who define technical and monitoring controls for data handling and breach response.
Procurement and vendor managers responsible for contracting third-party service providers and ensuring contractual protections.
Legal counsels and compliance officers who verify regulatory obligations, indemnities, and audit rights are present.

The BISA should be reviewed by legal, security, and the designated business owner before execution to ensure operational feasibility and compliance alignment.

Who signs and who implements the BISA

Chief Information Security Officer

Typically signs or approves the technical control commitments and verifies that encryption, access, and incident response measures match internal standards; also coordinates audits and mitigation responsibilities across IT and security operations.

Vendor Authorized Representative

A named officer or contract signer for the vendor who accepts contractual obligations, confirms implemented controls, and serves as the escalation point for incidents, audits, and compliance inquiries under the agreement.

Core components to include in a professional Business Information Security Agreement

A comprehensive BISA uses clear, operational language so responsibilities can be tested and audited without ambiguity.

Scope of Data

Define categories of data covered (e.g., PHI, PII, financial records) and exclude non-sensitive classes to avoid scope creep.

Security Controls

Specify encryption standards, access controls, logging requirements, and patch/endpoint management expectations for systems processing covered data.

Incident Response

Set notification timelines, required contents of breach notices, remediation steps, and responsibilities for root-cause analysis.

Audit and Reporting

Include audit frequency, allowed auditors, report formats, and requirements for remediation tracking and verification.

Compliance Obligations

Map applicable laws and standards (HIPAA, GLBA, PCI DSS, 21 CFR Part 11) and require evidence of compliance where relevant.

Liability and Remedies

Allocate indemnification, limits on liability, insurance minimums, and termination rights for material security failures.

Essential information fields to capture in the agreement

Party Identifiers: Legal entity name

Contact Details: Security/notice contacts

Data Categories: Types of protected data

Access Rights: Authorized user levels

Encryption Standards: Transport and rest

Retention Periods: Storage timelines

Step-by-step process to complete and execute the agreement

Follow these sequential actions to draft, review, and finalize a BISA with a third party.

01

Draft Terms: Complete scope, controls, and timelines in an editable template.
02

Security Review: Have IT/security validate technical commitments and feasibility.
03

Legal Review: Confirm legal language, indemnities, and governing law.
04

Execution: Obtain authorized signatures and retain signed copy.

How to configure the online signing workflow

Set up a clear signer order, authentication level, and document fields before sending the BISA for signature.

Field	Configuration
Signer Order	Sequential or parallel per approval needs
Authentication	Email link, SMS code, or KBA
Required Fields	Signature, full name, title, date
Audit Trail	Enable IP, timestamp, and event logging

Distribution and technical requirements for eSigning

Choose a signing platform that supports required authentication, audit trails, and secure storage for the executed BISA.

Authentication Options: Email, SMS, KBA, or SSO
Audit Trail: Record IP, timestamps, and actions
Document Formats: PDF and PDF/A recommended

Where to send the signed BISA and post-execution steps

After signatures are collected, route copies to legal, security, and the vendor relationship owner, and archive a locked copy in the records system.

Legal Repository: Store signed agreement as master copy
Security Archive: Add supporting evidence from audit logs
Vendor Portal: Share executed copy with the vendor
Operational Teams: Distribute implementation tasks and timelines

Typical timelines and deadlines to include in the BISA

Include clear, measurable deadlines for key obligations to ensure prompt action and compliance.

Incident Notification Deadline:

Notify within 72 hours of discovery

Remediation Plan Submission:

Provide plan within 10 business days

Audit Response Time:

Deliver required documents within 15 business days

Quarterly Review:

Schedule controls review every 90 days

Annual Certification:

Provide compliance attestation annually

Key milestones from negotiation to operationalization

Use a milestone sequence to track progress from drafting through enforcement and periodic review.

01

Drafting Complete

Agreement language finalized and prepared for review

02

Technical Validation

Security team confirms controls and obligations

03

Legal Approval

Legal signs off on liability and governing law

04

Signed & Archived

Executed agreement stored in records and access controls implemented

Common preparation errors to avoid

Vague scope language that fails to list specific data categories, causing disputes over applicability and remediation obligations.
Leaving technical commitments unspecified (e.g., encryption algorithms), which prevents objective verification during audits or incident investigations.
Not naming a primary security contact or escalation path, resulting in delayed notifications and ineffective incident coordination.
Failing to align retention and deletion clauses with regulatory requirements, which may lead to noncompliance and excessive data retention.

Penalties and risks for an incorrect or incomplete BISA

Regulatory Fines: HIPAA fines and penalties

Contract Liability: Indemnities and damage awards

Data Breach Costs: Notification and remediation expenses

Reputational Harm: Loss of customer trust

Operational Disruption: Service interruptions and recovery costs

Enforceability Risk: Invalid signatures or vague terms

Representative eSignature vendor comparison for executing BISAs

Compare core pricing and capabilities for routine BISA execution; signNow appears first to reflect plan-level pricing and envelope policies.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Real-world examples of BISAs in practice

These short examples show how organizations use BISAs to formalize data handling and security responsibilities.

Optica Ventures LLC

A venture services firm standardized vendor data handling for portfolio companies to reduce ambiguity in audits and incident response

Needed rapid partner onboarding across multiple states
The standardized BISA ensured consistent controls, simplified vendor reviews, and reduced time-to-compliance for security attestations.

Martin Properties

A real estate operator used a BISA to govern third-party management portals that store tenant PII

Required clear breach notice and encryption commitments
The agreement reduced negotiation time, clarified remediation steps during incidents, and improved confidence during external audits.

Practical guidance to make your BISA effective and enforceable

Adopt these drafting and operational practices to reduce ambiguity and improve compliance readiness.

Use precise technical requirements

Specify encryption standards, authentication methods, logging retention, and acceptable use so obligations are measurable and auditable.

Limit scope to necessary data

Narrow the covered data categories to what is required for the service to prevent unnecessary exposure and compliance burden.

Include audit and remediation steps

Require periodic attestation, a right to audit, and a defined remediation timetable to enforce continuous compliance.

Align retention with law

Match retention and deletion clauses to IRS, HIPAA, or industry rules to avoid both premature deletion and over-retention.

Frequently asked questions about Business Information Security Agreements

Answers to common questions when drafting, executing, and managing a BISA, with an emphasis on legal validity and practical implementation.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures satisfy legal requirements under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes in most U.S. jurisdictions when intent, consent, attribution, and retention are demonstrable.
Do BISAs need notarization or witnesses?
Generally no. Standard BISAs do not require notarization or witnesses; exceptions exist for documents that affect real property or require notarized acknowledgements under state law.
When is a BAA required?
If the agreement covers Protected Health Information, include a HIPAA Business Associate Addendum and ensure compliance with HIPAA privacy and security rules, including 45 CFR §164.530(j) for record retention.
What if the vendor refuses key clauses?
Negotiate measurable alternatives, document compensating controls, and consider limiting scope or requiring periodic third-party attestations if contractual indemnities are not acceptable.
How are breaches reported and tracked?
Define a short notification window (e.g., 72 hours), required information, remediation plan submission timelines, and a process for joint investigation and regulatory reporting.
Can the agreement be revoked or amended?
Yes. Include amendment and termination clauses with clear notice periods, obligations on data return or deletion, and post-termination access restrictions to avoid lingering exposure.

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