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Producers Services Agreement

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PRODUCERS SERVICES AGREEMENT

This Producers Services Agreement (the "Agreement") is made and entered into as of by and between Client Name: , a company organized and existing under applicable law, and Producer Name: (each a "Party" and collectively the "Parties").

RECITALS

WHEREAS, Company desires to engage Producer to perform services in connection with the development, pre-production, production, and/or post-production of the audiovisual project currently entitled (the "Project"); and

WHEREAS, Producer represents that Producer has the skill, experience and personnel required to perform the services described in this Agreement and is willing to perform such services on the terms set forth below; and

WHEREAS, the Parties desire to set forth their respective rights and obligations with respect to the services, compensation and ownership of work product.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

1. SERVICES

1.1 Scope. Producer shall provide the services described in Exhibit A attached hereto and incorporated herein (the "Services"), including but not limited to development, procurement of key personnel, supervision of production, coordination of delivery materials and other production services reasonably necessary for the Project.

1.2 Deliverables. Producer shall deliver to Company the deliverables described in Exhibit A in accordance with the delivery schedule set forth therein. Producer will provide a written notice to Company when each deliverable is complete and ready for acceptance.

1.3 Acceptance. Company shall have days from receipt to notify Producer of any non-conformity. Absent timely notice, the deliverable shall be deemed accepted.

2. TERM

2.1 Term. The term of this Agreement shall commence on the Effective Date and shall continue until completion of the Services or termination in accordance with Section 12. The anticipated completion date is .

3. COMPENSATION

3.1 Fees. As full compensation for the Services, Company shall pay Producer the sum of USD, payable in accordance with the payment schedule set forth below.

3.2 Payment Schedule. Company shall pay Producer as follows: . All payments are due within days of invoice.

3.3 Taxes and Withholding. Producer is solely responsible for all federal, state and local taxes, and nothing in this Agreement will be construed to create a relationship of employment. Company may withhold amounts as required by law.

4. EXPENSES

4.1 Reimbursable Expenses. Company shall reimburse Producer for reasonable, pre-approved expenses incurred in connection with the Services upon submission of receipts. The Parties agree that reimbursable expenses shall not exceed USD without prior written approval.

5. OWNERSHIP; WORK PRODUCT

5.1 Work Made for Hire/Assignment. To the extent any Work Product (as defined below) does not qualify as a "work made for hire" under applicable law, Producer hereby irrevocably assigns, transfers and conveys to Company all right, title and interest in and to such Work Product, including all copyrights and other intellectual property rights. "Work Product" means all materials, recordings, scripts, footage, designs and other works created by Producer in connection with the Services.

5.2 Moral Rights. Producer hereby waives and agrees not to assert any moral rights or similar rights in the Work Product against Company, its licensees and assigns. Producer shall execute documents reasonably necessary to effectuate the foregoing assignment.

6. CREDIT; PROMOTION

6.1 Credit. If the Project is distributed or otherwise exploited, Producer shall receive on-screen credit in substantially the form and prominence set forth here: . The exact placement and form of credit shall be subject to reasonable approval by Company.

6.2 Promotional Use. Company shall have the right to use Producer's name, likeness and biographical material in connection with publicity and promotion of the Project, subject to Producer's right of prior review of written materials that materially alter Producer's credit or professional reputation.

7. CONFIDENTIALITY

7.1 Confidential Information. Each Party (the "Receiving Party") shall hold in confidence and not disclose to any third party any confidential or proprietary information of the other Party (the "Disclosing Party") disclosed in connection with this Agreement, except as permitted herein. Confidential Information does not include information which is or becomes publicly known other than by breach of this Agreement, is rightfully received from a third party without obligation of confidentiality, or is independently developed by the Receiving Party.

7.2 Compelled Disclosure. If the Receiving Party is required by law or legal process to disclose Confidential Information, it shall provide prompt notice to the Disclosing Party and reasonably cooperate in any lawful effort to limit disclosure or obtain protective treatment.

8. REPRESENTATIONS & WARRANTIES

Each Party represents and warrants to the other that: (a) it has full right, power and authority to enter into and perform its obligations under this Agreement; (b) the execution and performance will not violate any agreement or obligation to any third party; and (c) it will comply with all applicable laws and regulations in the performance of its obligations hereunder.

9. INDEMNIFICATION

9.1 Producer Indemnity. Producer shall indemnify, defend and hold Company, its officers, directors, employees and agents harmless from and against any and all losses, liabilities, damages, costs and expenses (including reasonable attorneys' fees) arising out of: (a) Producer's breach of any representation, warranty or obligation under this Agreement; (b) claims that the Work Product infringes the intellectual property or other rights of any third party; or (c) Producer's negligence or willful misconduct in performing the Services.

9.2 Company Indemnity. Company shall indemnify, defend and hold Producer harmless from and against any losses arising from Company's distribution, exploitation or alteration of the Work Product in a manner that exceeds the rights granted to Company herein.

10. INSURANCE

10.1 Coverage. Producer shall maintain commercial general liability insurance with limits not less than USD per occurrence and workers' compensation insurance as required by law. Producer shall, upon request, furnish certificates evidencing such coverage.

11. INDEPENDENT CONTRACTOR

Producer is an independent contractor and nothing in this Agreement shall be construed to create an employer-employee relationship, partnership or joint venture between the Parties. Producer shall be responsible for all payroll taxes, benefits and other obligations for its employees and subcontractors.

12. TERMINATION

12.1 For Convenience. Either Party may terminate this Agreement for convenience upon days' prior written notice to the other Party. Upon termination for convenience, Company shall pay Producer for Services performed and approved expenses incurred through the effective date of termination.

12.2 For Cause. Either Party may terminate for material breach if the other Party fails to cure such breach within days after receipt of written notice specifying the breach.

13. NOTICES

Notices shall be given in writing and shall be deemed delivered when personally delivered, sent by nationally recognized overnight courier, or three (3) days after deposit in the U.S. mail, postage prepaid, addressed to the addresses set forth above or such other address as a Party may designate by notice pursuant to this Section.

14. MISCELLANEOUS

14.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state specified by Company and Producer as follows: , without regard to its conflicts of law principles.

14.2 Entire Agreement. This Agreement, together with any exhibits and attachments, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and negotiations, whether written or oral.

14.3 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions shall continue in full force and effect and the Parties shall negotiate in good faith to replace the invalid, illegal or unenforceable provision with a valid provision that achieves, to the extent possible, the Parties' original intent.

14.4 Amendments; Waiver. This Agreement may be amended only by a written instrument signed by both Parties. No waiver of any right will be effective unless in writing and signed by the Party against whom enforcement is sought.

14.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument. Signatures delivered by electronic means shall be valid and binding.

14.6 Force Majeure. Neither Party shall be liable for delays or failures in performance due to causes beyond its reasonable control, including acts of God, strikes, governmental action, epidemics or other similar events; provided, however, that the Party so affected shall give prompt notice and use commercially reasonable efforts to resume performance.

EXHIBIT A — SERVICES

Producer:

By:

Date:

Company:

By:

Date:

Enter text✕

What a Producers Services Agreement Is and when it applies

A Producers Services Agreement is a contract that sets out the relationship between a principal (company, carrier, or broker-dealer) and a producer (independent agent, sales representative, or referral partner). It defines scope of services, compensation and commission structure, term and termination, confidentiality, licensing and compliance responsibilities, indemnification, and dispute resolution. In insurance and financial services the agreement also often incorporates licensing, appointment, errors-and-omissions insurance, and regulatory reporting requirements. Use this document to formalize duties, preserve evidence of consent, and reduce disputes over commissions or client ownership.

Why a clear Producers Services Agreement matters

A well-drafted Producers Services Agreement clarifies responsibilities, protects commission streams, documents regulatory obligations, and reduces litigation risk while preserving operational consistency across producers.

Why a clear Producers Services Agreement matters

Who commonly completes a Producers Services Agreement

Each party should confirm licensing, appointment status, and tax reporting responsibilities before signing to limit regulatory exposure.

  • Insurance carriers and MGAs that appoint and compensate licensed producers and need audit-ready records.
  • Independent insurance producers and brokers who want written commission and territory protections.
  • Financial services firms and broker-dealers using producer agreements for referral fees, compliance, and KYC.

Essential clauses to include in a professional Producers Services Agreement

Key clauses reduce ambiguity and align expectations between the company and the producer. Include specifics on deliverables, payment triggers, compliance, and termination procedures.

Scope of Services

Define permitted activities, sales channels, territory, and whether sub-agents or referrals are allowed; tie duties to measurable outcomes where possible.

Compensation

Describe commission rates, splits, timing of payments, clawback or holdback conditions, advances, and how chargebacks are handled.

Term & Termination

Specify initial term, renewal rules, cause/no-cause termination, notice periods, and post-termination obligations such as transition assistance.

Compliance & Licensing

Obligate producers to maintain licenses, E&O insurance, and comply with state insurance codes, U.S. sanctions, and anti-money laundering rules.

Confidentiality & Data

Define confidential information, permitted use, data protection expectations, and any PHI handling constraints tied to HIPAA where relevant.

Indemnity & Limitations

Allocate liability for breaches, regulatory fines, and negligent conduct; include indemnity mechanics and any caps on damages.

Step-by-step: completing and executing the agreement

Follow these steps to prepare, review, and sign the Producers Services Agreement securely.

  • 01
    Prepare Draft: Assemble company standard clauses and populate producer-specific fields.
  • 02
    Verify Licenses: Confirm producer licensing and E&O coverage before execution.
  • 03
    Internal Review: Have legal and compliance teams review key clauses and compensation terms.
  • 04
    Execute & Archive: Sign with authorized representatives, retain executed copy, and update CRM/commission systems.

Configuring an online signing workflow for this agreement

Set up the digital workflow to match your approval and compliance checkpoints before sending for signature.

Field Configuration
Signing Order Specify company signers first, then producer; require sequential flow for approvals.
Authentication Use email + SMS code or advanced signer authentication for high-risk producers.
Conditional Fields Show commission schedule only if a particular compensation tier is selected.
Record Retention Store executed PDF/A with audit trail and access controls for the retention period.

Where to send and how signed agreements circulate

Understanding routing destinations prevents processing delays and ensures compliance with tax and licensing obligations.

  • Carrier Records: Retain executed agreement in the carrier appointment file for regulatory inspection.
  • Producer Copy: Provide an executed copy to the producer for their records and tax purposes.
  • Payroll/Commissions: Send final signed version to the commissions team to trigger setup and payment.
  • Compliance Archive: File with the compliance unit and any state appointment paperwork as required.

Digital signing and eSubmission considerations

Store the signed agreement, audit trail, and any ID verification artifacts together to simplify audits and tax reporting.

  • File Formats: PDF, DOCX accepted; export signed file as PDF/A for long-term retention.
  • Integrations: Integrate with CRM, NetSuite, or payroll to automate producer onboarding.
  • Authentication: Options include email, SMS OTP, knowledge-based auth, and advanced signer authentication.

Key filing and reporting deadlines tied to producer agreements

Track deadlines for tax reporting, licensing appointments, and renewals to avoid penalties and interruptions in commission payments.

W-9 Collection:

Provide W-9 on request; missing TIN may trigger 24% backup withholding (IRC guidance).

1099-NEC Reporting:

Issue 1099-NEC to qualifying producers by Jan 31 for nonemployee compensation.

License Renewal:

Monitor individual state license renewal dates to prevent unappointed activity.

E&O Insurance:

Verify continuous coverage and collect certificates before commission setup.

Contract Renewal Notice:

Provide required notice per contract before automatic renewal, if applicable.

Typical lifecycle milestones for a producer engagement

Sequential milestones appear from recruitment to post-termination administration.

01

Recruitment & Offer

Candidate evaluation, offer letter, and conditional agreement execution.

02

Licensing & Appointment

Confirm state licenses and process carrier appointment paperwork.

03

Commission Setup

Enter commission plan into payroll/commission engine and schedule first payment.

04

Ongoing Audit

Periodic compliance checks and performance reviews; adjust compensation as needed.

Common mistakes when preparing the agreement

  • Using vague commission language that leaves calculation open to interpretation or dispute.
  • Failing to verify licensing and E&O insurance before paying commissions or allowing producer activity.
  • Omitting termination mechanics and post-termination commission treatment, leading to litigation risk.
  • Not retaining an executed, tamper-evident copy with an audit trail for regulatory review.

Penalties and risks if the agreement is incorrect or incomplete

Tax Withholding: Missing or incorrect TIN on W-9 can trigger 24% backup withholding and reporting liabilities.
Regulatory Fines: Paying unappointed producers or lacking required licensing may lead to state insurance fines and sanctions.
Contract Disputes: Ambiguous compensation clauses can result in costly arbitration or litigation.
Audit Exposure: Insufficient recordkeeping or missing signed copies increases exposure during regulatory audits.
Clawbacks: Improperly drafted clawback provisions can prevent effective recovery of overpayments.
Data Breach: Failure to restrict PHI or PII in the agreement can trigger HIPAA or state data-protection penalties.

Required information and common data fields

Producer Name: Full legal name
Company Name: Principal legal entity
Tax ID: SSN or EIN for tax reporting
Licenses: State license numbers
Compensation: Rates and payment terms
Contact Info: Address, email, phone

Practical examples of how companies use the agreement

Two brief examples show common ways these agreements are implemented across organizations.

Optica Ventures (Brokerage)

A small brokerage used a standardized Producers Services Agreement to centralize commission rules and territory assignments

  • Saved reconciliation time by automating commission setup
  • After adoption, the brokerage reduced commission disputes and improved payment accuracy by standardizing terms and centralizing documentation for audits.

Martin Properties (Real Estate Sales)

A property manager employed the agreement for leasing agents to define referral fees and tenancy responsibilities

  • Integrated with the company CRM to trigger payments
  • The signed, auditable records simplified year-end reporting and ensured agents complied with licensing requirements.

Who can sign on behalf of each party

Company Signer

An authorized officer, corporate counsel, or delegated manager with written signing authority should execute for the principal; verify authority internally to bind the company.

Producer Signer

A licensed producer, sole proprietor, or an authorized officer of the producer entity must sign. If signing on behalf of a business, include title and proof of authority.

Practical tips for accurate and efficient completion

Follow these practices to reduce back-and-forth and ensure enforceability.

Use Precise Numbers
Spell out commission percentages, rounding rules, and thresholds in examples to avoid interpretation disputes; include calculation examples.
Standardize Workflows
Create a single approved template, route through legal/compliance, and automate data entry into commission systems to minimize manual errors.
Verify Identity
Collect ID and license documents ahead of signing; use multi-factor authentication for eSignatures on regulated agreements.
Preserve Audit Trails
Keep tamper-evident signed PDFs, signer IPs, timestamps, and any authentication logs for regulatory and tax inspections.

eSignature vendor comparison for Producers Services Agreement execution

Compare starting prices and key capabilities relevant to producer agreement workflows; signNow is listed first per platform comparison conventions.

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 by plan Varies by plan Varies by plan Varies by plan
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

Frequently asked questions about Producers Services Agreements and eSigning

Common questions about execution, enforceability, notarization, and retention are answered concisely below.


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