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Web Hosting Service Agreement

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Web Hosting Service Agreement

This Web Hosting Service Agreement (the "Agreement") is entered into as of by and between Service Provider: , located at ; and Client: , located at .

RECITALS

WHEREAS, Provider is engaged in the business of providing web hosting, server management, and related infrastructure services, and represents that it has the technical expertise, personnel and resources necessary to provide such services to Client in accordance with this Agreement;

WHEREAS, Client desires to procure from Provider certain hosting services and related support as more particularly described in this Agreement, and Provider agrees to provide such services on the terms and conditions set forth herein;

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the hosting services to be provided by Provider to Client.

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

1. DEFINITIONS

1.1 "Services" means the web hosting, managed infrastructure, monitoring, backup, support and ancillary services described in Section 2 and in any Service Order attached to or incorporated into this Agreement.

1.2 "Service Order" means a written or electronic order form executed by the parties specifying the Services, Service Levels, Fees and any special terms that supplement this Agreement.

2. SERVICES

2.1 Scope. Provider shall provide the Services specified in the applicable Service Order. The core Services include hosting of Client content on Provider infrastructure, routine monitoring, operating system updates as agreed, and remote technical support as set forth herein.

3. SERVICE LEVELS

3.1 Availability Commitment. Provider shall use commercially reasonable efforts to make the Services available with a monthly uptime percentage no less than %. Credits for downtime, if any, will be calculated as set forth in this Section and are Client's sole and exclusive remedy for failure to meet the uptime commitment.

3.2 Exclusions. Availability calculations exclude scheduled maintenance, force majeure events, and outages caused by Client-provided content, third-party services not managed by Provider, or Client's misuse of the Services.

4. FEES AND PAYMENT

4.1 Fees. Client shall pay Provider the fees set forth in the Service Order. All fees are due in accordance with the invoice terms and are exclusive of taxes. Unless otherwise agreed, recurring fees are payable in advance.

Monthly    Quarterly    Annually

5. TERM AND TERMINATION

5.1 Term. The initial term of this Agreement shall commence on the Effective Date and continue for months, and shall automatically renew for successive terms of the same duration unless either party provides written notice of non-renewal at least 30 days prior to the end of the then-current term.

5.2 Termination for Cause. Either party may terminate this Agreement for material breach by the other party that remains uncured for 30 days following written notice specifying the breach.

5.3 Effect of Termination. Upon termination, Client shall pay all accrued fees through the effective date of termination. Provider shall, at Client's written direction and subject to payment of outstanding fees, provide Client with a copy of Client's hosted data in standard format within 30 days.

6. CLIENT RESPONSIBILITIES

6.1 Client shall be responsible for providing accurate account information, maintaining backups of Client content not explicitly covered by Provider backup services, and ensuring Client's use of the Services complies with applicable law and Provider's acceptable use policies. Client shall not upload harmful code or content that could compromise Provider systems.

7. SECURITY AND DATA PROTECTION

7.1 Provider shall implement reasonable administrative, physical and technical safeguards designed to protect Client data against unauthorized access, disclosure, alteration or destruction. Such measures shall be consistent with industry standards for similarly situated hosting providers.

8. INTELLECTUAL PROPERTY

8.1 Client retains all right, title and interest in and to Client content and intellectual property provided by Client to Provider. Provider retains all right, title and interest in and to Provider's underlying technology, software, tools and methods used to deliver the Services.

8.2 License. Client grants Provider a non-exclusive, worldwide, royalty-free license to host, copy, transmit and otherwise use Client content solely as required to provide the Services.

9. CONFIDENTIALITY

9.1 Definition. "Confidential Information" means non-public business, technical and financial information disclosed by one party to the other that is designated as confidential or that reasonably should be understood to be confidential.

9.2 Obligations. The receiving party shall: (a) limit disclosure of Confidential Information to those employees and contractors with a need to know; (b) protect it using the same degree of care used to protect its own confidential information but no less than reasonable care; and (c) not use Confidential Information for any purpose other than performing obligations under this Agreement.

10. WARRANTIES; DISCLAIMER

10.1 Limited Warranty. Provider warrants that it will perform the Services in a professional and workmanlike manner consistent with generally accepted industry standards. For any breach of this warranty, Provider's sole obligation and Client's exclusive remedy shall be re-performance of the non-conforming Services or, if Provider cannot substantially correct the non-conformity, a proportionate refund of the fees paid for the affected Services.

10.2 Disclaimer. EXCEPT FOR THE LIMITED WARRANTY EXPRESSLY SET FORTH IN SECTION 10.1, PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, OR NON-INFRINGEMENT.

11. LIMITATION OF LIABILITY

11.1 Exclusion of Damages. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

11.2 Liability Cap. EXCEPT FOR LIABILITY ARISING FROM GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, EACH PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL NOT EXCEED THE AMOUNTS PAID BY CLIENT TO PROVIDER UNDER THIS AGREEMENT IN THE PRECEDING PERIOD OR , WHICHEVER IS GREATER.

12. INDEMNIFICATION

12.1 By Provider. Provider shall defend, indemnify and hold Client harmless from third-party claims alleging that Provider's infrastructure or Provider-provided software, as delivered by Provider, infringes a third party's intellectual property rights, provided Client promptly notifies Provider and cooperates in the defense.

12.2 By Client. Client shall defend, indemnify and hold Provider harmless from claims arising out of Client content, Client's breach of this Agreement, or Client's violation of applicable law.

13. NOTICES

13.1 Notices. All notices under this Agreement must be in writing and delivered by hand, nationally recognized overnight courier, or certified mail (return receipt requested) to the parties at their respective notice addresses set forth below or at such other address as a party may designate by notice to the other.

14. AMENDMENTS; WAIVER; COUNTERPARTS

14.1 Amendments. No amendment to this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

14.2 Waiver. The waiver by either party of any breach or default shall not constitute a waiver of any other right or remedy under this Agreement.

14.3 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. Electronic or scanned signatures shall have the same force and effect as original signatures.

15. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

15.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of laws principles.

15.2 Entire Agreement. This Agreement, together with any Service Orders, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, proposals and communications, whether oral or written.

15.3 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect to the maximum extent permitted by law.

16. MISCELLANEOUS

16.1 Relationship of Parties. The parties are independent contractors and nothing in this Agreement creates a partnership, joint venture or agency relationship.

Service Provider (Print Name):

By:

Date:

Client (Print Name):

By:

Date:

Enter text✕

What a Web Hosting Service Agreement Covers

A Web Hosting Service Agreement is a contract between a hosting provider and a customer that defines the hosting services, service levels, fees, data handling, security obligations, and dispute-resolution rules. It specifies the scope of services (shared, VPS, dedicated, cloud), uptime and maintenance windows, backup and restore responsibilities, and intellectual property rights. The agreement also allocates liability, describes termination and renewal mechanics, and sets requirements for regulatory compliance when protected data (for example PHI) is stored or processed.

Why a Clear Hosting Agreement Matters

A well-drafted Web Hosting Service Agreement assigns responsibilities, reduces operational ambiguity, and limits commercial and legal exposure. It clarifies uptime expectations and remedies, data‑security duties, incident response timelines, and ownership of hosted content. For regulated data, the agreement documents compliance measures and required addenda, such as a HIPAA business associate agreement, to reduce regulatory risk and support litigation readiness.

Why a Clear Hosting Agreement Matters

Who Typically Uses This Agreement

Organizations that procure or provide hosting use this agreement to formalize technical, security and commercial terms before services begin.

  • Small and medium businesses procuring managed hosting, SaaS platforms, or e-commerce site hosting with defined uptime and support needs.
  • Software vendors and SaaS providers outsourcing infrastructure or offering co-managed hosting to customers under SLAs.
  • Healthcare, finance, and legal organizations that must document security controls and include regulatory addenda like a HIPAA BAA.

The document is useful for providers, customers, and third parties who need enforceable, auditable terms for hosting relationships.

Essential Clauses in a Professional Hosting Agreement

Include clear, enforceable terms to manage service delivery, security, liability, and commercial expectations.

Services Covered

Define precisely which hosting services and features are included (compute, storage, CDN, backups, administrative access) and list excluded items to avoid scope disputes.

Service Levels

Specify uptime targets, measurement windows, reporting metrics, and the credit or remediation mechanism for SLA failures; include maintenance windows and notification rules.

Security & Compliance

Document technical controls, encryption standards, incident response obligations, and compliance responsibilities — include HIPAA BAA where PHI is involved.

Data Ownership & Backups

State that the customer retains ownership of content, define backup frequency, retention, restore SLAs, and responsibility for backup testing and costs.

Support & Maintenance

Describe support tiers, response and resolution targets, escalation paths, and any premium support fees; note scheduled maintenance procedures.

Fees & Billing

Set pricing, invoicing cadence, payment methods, late fees, and any variable charges (overage, data egress, third-party licenses).

How to Complete a Hosting Agreement — Step by Step

Follow this sequence to prepare, review, and finalize the agreement with minimal rework.

  • 01
    Gather requirements: Identify required capacity, uptime, compliance and backup needs.
  • 02
    Populate the template: Enter parties, service descriptions, fees, and dates accurately.
  • 03
    Review legal and technical: Have legal counsel and the technical lead confirm obligations and SLAs.
  • 04
    Execute and store: Sign with authorized representatives and retain an executed copy.

Typical Agreement Workflow from Draft to Service Activation

A clear workflow reduces delays and ensures the provider can provision services on schedule.

  • Draft: Provider or customer prepares initial agreement text.
  • Negotiate: Parties exchange edits on SLAs, fees, and security.
  • Sign: Authorized signatories execute the agreement electronically or on paper.
  • Provision: Provider provisions resources and confirms activation per agreed timelines.

Common Digital Workflow Settings for Electronic Completion

Configure fields and routing to match review cycles and signature order before sending the document for signature.

Field Configuration
Signature Order Set signer sequence (provider first or customer first) as required.
Authentication Choose email link or SMS code; use stronger verification for sensitive agreements.
Expiry Set signing link expiry (for example, 30 days) to close stale requests.
Notifications Enable reminders and completion notifications for all parties.

Technical and File Requirements for eSigning and Distribution

Ensure the file format and platform settings match signer needs and integration points before sending the agreement.

  • File Formats: PDF, DOCX supported for templates.
  • Integrations: CRM and cloud storage connectors available.
  • Browser Support: Modern browsers and mobile devices supported.

eSignature Vendor Pricing and Feature Comparison

Compare common criteria for eSignature platforms when you need to execute Web Hosting Service Agreements electronically. Vendor columns show starting price and typical availability of core features.

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 vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes Varies by plan Varies by plan
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Practical Tips to Reduce Risk and Disputes

Follow these drafting and operational practices to limit ambiguity and improve enforceability.

Define performance metrics
Use measurable SLA metrics (uptime percentage, mean time to restore) and describe how credits or remedies are calculated and applied to invoices to avoid disputes over performance.
Be explicit on security
List specific security controls (TLS 1.2/1.3, AES-256 at rest, patch windows) and require evidence such as SOC 2 or ISO 27001 reports when compliance is material.
Address data residency
If data location matters, specify permitted data center regions and any cross-border transfer restrictions to meet privacy or regulatory requirements.
Standardize change control
Include a change‑control procedure for scope changes and pricing adjustments to ensure operational changes are mutually approved and documented.

Common Preparation Mistakes to Avoid

  • Using vague SLA terms like 'best effort' without measurable uptime windows, which makes remedies subjective and hard to enforce.
  • Failing to specify backup frequency and restore SLAs, leaving responsibility disputes after data loss or corruption events.
  • Omitting explicit data ownership and export/import procedures, causing uncertainty about customer rights on termination.
  • Not requiring evidence of compliance (SOC 2, ISO 27001) when hosting regulated data, increasing regulatory and reputational risk.

Consequences of an Incomplete or Incorrect Agreement

Service Outage Liability: Provider may face contract damages or credits.
Data Breach Costs: Regulatory fines and remediation expenses.
Regulatory Noncompliance: HIPAA violations can trigger civil penalties.
Intellectual Property Risk: Ambiguous IP terms cause ownership disputes.
Termination Exposure: Early termination fees or loss of data access.
Operational Delays: Unclear provisioning timelines delay go‑live.

Typical Timelines and Notice Periods to Include

Clear timeline clauses prevent misunderstanding about activation, renewal, and termination rights.

Negotiation Window:

Allow a defined period for edits, commonly 14–30 days from initial draft delivery.

Effective Date:

The agreement begins on the specified Effective Date (MM/DD/YYYY).

Initial Term:

Commonly 12 months; longer terms for discounted pricing.

Renewal Notice:

Require written notice to avoid auto-renewal, typically 30–60 days before expiry.

Termination for Convenience:

Specify notice period and any early-termination fees, often 30–90 days.

How Organizations Use Hosting Agreements in Practice

Real-world examples show common priorities: speed of execution, compliance, and integration with operational systems.

Tech Data (enterprise example)

Tech Data standardized hosting terms across business units to reduce negotiation time.

  • They emphasized audit and reporting.
  • As a result, internal teams aligned on remediation expectations and procurement reduced contract cycle time while preserving compliance controls.

Martin Properties (SMB example)

A property-management firm adopted a templated hosting agreement for their website and tenant portal.

  • They prioritized uptime and backup SLAs.
  • The template ensured consistent vendor obligations, faster vendor onboarding, and clearer remedies when outages affected tenant services.

Frequently Asked Questions

Answers to common questions about execution, e-signatures, compliance, and amendments for Web Hosting Service Agreements.


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