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Professional Provider Agreement

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PROFESSIONAL PROVIDER AGREEMENT

This Professional Provider Agreement ("Agreement") is entered into as of the day of , by and between Client Name: , entity type: Individual Corporation/LLC , with principal place of business at ("Client"), and Provider Name: , entity type: Individual Corporation/LLC , with principal place of business at ("Provider").

RECITALS

WHEREAS, Client desires to retain Provider to perform professional services consisting of (the "Services") in accordance with the terms of this Agreement;

WHEREAS, Provider represents that it has the qualifications, experience and ability to perform the Services and is willing to perform such Services under the terms and conditions set forth herein;

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the Services.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the parties agree as follows:

1. DEFINITIONS

1.1 "Deliverables" means the tangible and intangible work product, reports, documentation and other materials to be delivered by Provider to Client as specified in the Scope of Services.

1.2 "Confidential Information" means any nonpublic information disclosed by a party to the other party that is designated as confidential or that, given the nature of the information or circumstances of disclosure, reasonably should be understood to be confidential, including but not limited to business plans, customer information, technical data and pricing.

2. SCOPE OF SERVICES

Provider shall perform the Services in a professional and workmanlike manner consistent with industry standards. Provider will provide qualified personnel, comply with the mutually agreed timeline set forth in the Scope of Services, and obtain Client's written acceptance of Deliverables where acceptance criteria are specified.

3. TERM; TERMINATION

3.1 Term. The term of this Agreement will commence on the Effective Date and continue for a period of months unless earlier terminated in accordance with this Agreement.

3.2 Termination for Convenience. Either party may terminate this Agreement for convenience upon days' prior written notice to the other party.

3.3 Termination for Cause. Either party may terminate this Agreement for material breach if the breaching party fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach. Termination will be without prejudice to any other remedies available at law or in equity.

4. COMPENSATION AND PAYMENT

Provider shall invoice Client in accordance with the billing schedule set forth in the Scope of Services. Unless otherwise agreed, Client shall pay all undisputed invoices within days of receipt. Overdue amounts shall accrue interest at the rate of or the maximum rate permitted by law, whichever is less.

5. EXPENSES

Client will reimburse Provider for all reasonable, pre-approved out-of-pocket expenses incurred in connection with the performance of the Services, subject to submission of receipts and documentation. Reimbursable expenses do not include general overhead, administrative costs, or travel upgrades.

6. INDEPENDENT CONTRACTOR; TAXES

Provider is an independent contractor. Nothing in this Agreement creates an employment, agency, partnership or joint venture relationship between the parties. Provider is solely responsible for payment of all federal, state and local taxes arising from compensation paid to Provider.

7. CONFIDENTIALITY

Each party shall: (a) protect Confidential Information of the other party using at least the same degree of care it uses to protect its own Confidential Information, but no less than reasonable care; (b) use Confidential Information solely for performance under this Agreement; and (c) not disclose Confidential Information except to employees, agents or subcontractors with a need to know who are bound by confidentiality obligations at least as protective as those herein. These obligations survive termination for a period of three (3) years, except that trade secrets shall remain protected for as long as they remain trade secrets under applicable law.

8. INTELLECTUAL PROPERTY

8.1 Pre-existing IP. Each party retains all right, title and interest in and to its pre-existing intellectual property. Nothing in this Agreement transfers ownership of pre-existing IP.

8.2 Work Product. Except as expressly set forth herein, all right, title and interest in any Work Product created by Provider specifically for Client under this Agreement shall be assigned to Client upon full payment of fees. Provider hereby irrevocably assigns to Client all right, title and interest in such Work Product and agrees to execute instruments necessary to effectuate such assignment.

9. REPRESENTATIONS AND WARRANTIES; DISCLAIMER

Provider represents and warrants that: (a) it has the full right and authority to enter into this Agreement; (b) the Services will be performed in a professional manner consistent with industry standards; and (c) the Deliverables, to Provider's knowledge, do not infringe third-party intellectual property rights. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS SECTION, PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

10. INDEMNIFICATION

Provider shall defend, indemnify and hold harmless Client and its officers, directors and employees from and against any claims, liabilities, losses, damages and expenses (including reasonable attorneys' fees) arising out of Provider's breach of this Agreement, negligence, willful misconduct, or infringement of a third party's intellectual property rights caused by Provider's Deliverables, except to the extent such claims arise from Client's breach or misuse.

11. INSURANCE

Provider shall maintain, at its expense, general commercial liability insurance with limits of not less than per occurrence and professional liability/errors and omissions coverage with limits of not less than per claim, or such greater limits as Client may reasonably require. Provider shall provide certificates of insurance upon request.

12. LIMITATION OF LIABILITY

EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES. THE AGGREGATE LIABILITY OF EITHER PARTY ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNTS PAID BY CLIENT TO PROVIDER UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTH PERIOD PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

13. COMPLIANCE WITH LAWS

Each party shall comply with all applicable federal, state and local laws, rules and regulations in the performance of its obligations under this Agreement, including data protection and export control laws where applicable.

14. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered by certified mail, nationally recognized courier, or email (with confirmation) to the addresses below:

15. AMENDMENT; WAIVER

No amendment, modification or waiver of any provision of this Agreement will be effective unless in writing and signed by authorized representatives of both parties. No failure or delay by either party in exercising any right under this Agreement will constitute a waiver of that right.

16. COUNTERPARTS; ELECTRONIC SIGNATURES

This Agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one instrument. Signatures delivered by electronic means (including scanned or digital signatures) will be binding.

17. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

17.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflicts of law.

17.2 Entire Agreement. This Agreement, together with the Scope of Services and any exhibits expressly incorporated herein, constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements, proposals and communications, whether oral or written, relating to the subject matter hereof.

17.3 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions will remain in full force and effect, and the parties will negotiate in good faith to replace the invalid provision with a valid provision that most closely approximates the parties' intent.

18. MISCELLANEOUS

The parties acknowledge that they have read this Agreement, understand it and agree to be bound by its terms. Headings are for convenience only and do not affect interpretation.

Client Printed Name:

By:

Date:

Provider Printed Name:

By:

Date:

Enter text✕

What the Professional Provider Agreement Is

A Professional Provider Agreement is a written contract that sets out the scope, standards, payment terms, and legal responsibilities between a hiring organization and an independent professional or service provider. It commonly covers the services to be delivered, compensation and invoicing, term and termination, confidentiality, data protection, intellectual property allocation, indemnities, and dispute resolution. For healthcare and education contexts it may include HIPAA or FERPA addenda. Electronic execution is generally permitted under federal and state e-signature laws when parties consent.

Why a Clear Agreement Matters

A well-drafted Professional Provider Agreement reduces ambiguity, assigns legal risk, and sets payment and performance expectations. It also documents consent needed for electronic signatures and supports regulatory compliance for industry-specific rules.

Why a Clear Agreement Matters

Who Commonly Uses This Agreement

Use the agreement to document expectations for performance, payment, and compliance across these user groups.

  • Independent consultants and contractors providing specialized services to businesses.
  • Healthcare providers, clinics, and vendors requiring HIPAA-compliant terms.
  • School districts or education vendors managing FERPA-sensitive work.

Core Components to Include

Key sections ensure the agreement is enforceable and operationally useful; include clear language and measurable obligations.

Scope of Work

Describe services, deliverables, milestones, and acceptance criteria with enough detail to avoid disputes and ensure measurable performance.

Compensation

Specify rates, billing intervals, expense reimbursement, invoicing format, and payment terms (for example, Net 30).

Term and Termination

Define start and end dates, renewal mechanics, notice requirements, and termination for breach or convenience.

Confidentiality

List confidential data, permitted disclosures, duration of confidentiality, and remedies for unauthorized disclosure.

Indemnity & Liability

Allocate risk with indemnity clauses, liability caps, and carve-outs for gross negligence or statutory fines.

Compliance

Include clauses for applicable laws (HIPAA, FERPA, export controls), data security standards, and audit rights where required.

Security and Compliance Checklist

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Signed record with timestamp and IP
HIPAA BAA: BAA required for PHI handling
Authentication: Multi-factor options for signer verification
Access Controls: Role-based permissions and logs
Retention: Tamper-evident storage and export

Primary Risks and Potential Penalties

Breach Liability: Damages and indemnity exposure
HIPAA Violations: Civil penalties and corrective actions
Tax Reporting Errors: $60–$330 per form (IRC §6721)
I-9 Noncompliance: $281–$2,789 per violation
Contract Invalidity: Improper signature may affect enforceability
Data Breach Costs: Notification, remediation, and fines

Common Preparation Mistakes to Avoid

  • Using vague scope language that omits deliverable specifications or acceptance criteria, which increases dispute risk and delays.
  • Mismatched party names or TIN information that prevents proper tax reporting or triggers backup withholding obligations.
  • Omitting clear payment timing or invoice requirements, causing billing disputes and cash-flow interruptions.
  • Failing to include necessary regulatory addenda (for example HIPAA or FERPA), exposing parties to compliance violations.

Step-by-Step: Completing the Agreement

Follow a consistent sequence to prepare, review, execute, and store the agreement to minimize errors and speed onboarding.

  • 01
    Prepare Draft: Populate scope, rates, and term with precise language.
  • 02
    Collect Supporting Data: Attach W-9/TIN, licenses, and insurance certificates.
  • 03
    Review and Approve: Obtain legal and compliance sign-off before execution.
  • 04
    Execute Electronically: Use a compliant e-signature method and retain audit trail.

Where the Completed Agreement Should Go

Route the fully executed agreement to key stakeholders and systems to enable billing, service delivery, and recordkeeping.

  • Contract Repository: Store a signed PDF with audit trail for legal access.
  • Finance / AP: Send copy for vendor setup and payment processing.
  • Project / Ops: Provide to project managers for onboarding and delivery.
  • Compliance Team: Retain addenda and evidence for regulatory review.

Digital Workflow Settings for Online Completion

Configure the online signing workflow to match your internal approvals, authentication needs, and storage policies.

Field Configuration
Signature Order Sequential or parallel signer order; choose sequential for approvals.
Authentication Method Email link, SMS code, or KBA for stronger identity assurance.
Reminder Schedule Set automated reminders and expiration for outstanding requests.
Storage Location Select secure repository and retention lifecycle.

Technical Requirements for eSigning and Distribution

Confirm audit trail, export options, and secure storage to meet legal and operational requirements.

  • File Formats: PDF and DOCX supported for field placement
  • Integrations: Connectors to CRM, ERP, and cloud storage
  • Signer Authentication: Email, SMS, or advanced multi-factor options

Typical Timing and Deadline Items to Track

Identify and calendar the agreement's key dates so obligations, payments, and reporting occur on time.

Effective Date:

Enter as MM/DD/YYYY; governs when obligations begin.

Invoice Terms:

Document payment terms (for example, Net 30) and late fee policy.

Tax Reporting:

1099-NEC recipient/IRS deadline: Jan 31 annually.

Insurance Renewal:

Track policy dates aligned with contract term.

Termination Notice:

Specify notice period required for convenience termination.

Contract Lifecycle Milestones

A sequential view highlights core milestones from negotiation through closeout.

01

Negotiation

Finalize scope, deliverables, and pricing with both parties.

02

Internal Approvals

Obtain legal, procurement, and finance sign-off before execution.

03

Execution

Complete signatures and distribute executed copies with audit trail.

04

Onboarding & Delivery

Set up vendor in systems and commence services per schedule.

eSignature Vendor Comparison for This Agreement

Comparison of typical vendor pricing and core capabilities relevant to executing Professional Provider Agreements; signNow appears first by design.

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 Yes, 7-day trial Plan-dependent Plan-dependent Plan-dependent Plan-dependent
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Plan-dependent Plan-dependent Plan-dependent

Frequently Asked Questions and Troubleshooting

Answers to common legal, technical, and process questions about preparing and executing a Professional Provider Agreement.


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