How to Evaluate Your MSP Agreements A Comprehensive Checklist

How to Evaluate Your MSP Agreements: A Comprehensive Checklist

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When was the last time you reviewed your MSP agreements? If it’s been a while, you might be exposing your business to unnecessary risks like compliance gaps, unclear terms, and vendor disputes. And each of these can cost you dearly.

So what next? All you have to do is evaluate MSP Agreements properly to ensure that they are working for you and not against you. And how to do that? Before getting to the ‘how’, let’s start with the ‘why’.

Why Evaluating Your Agreements Is Critical

Evaluating MSP Agreements on a regular basis can help you adapt to evolving regulations, mitigate liabilities, and align with your clients’ needs. It’s how your business stays protected and prepared for growth.

Legal and Financial Protection

 

 

The Acronis case in California highlights why MSPs need robust agreements. An MSP was sued when their law firm client’s data couldn’t be recovered after a ransomware attack, despite Acronis backups. Your contracts should clearly limit liability for cyber incidents and protect against vendor failures. Well-crafted indemnification clauses help fairly allocate risks while safeguarding your financial position.

Stay Compliant with Regulations

Colorado, Virginia, Connecticut, Utah, and Texas have introduced new privacy laws, alongside GDPR and HIPAA. Your contracts must address these changes. Include specific terms for data processing and covering all regulated markets that you serve.

Build Better Client Relations

Clear contracts minimize misunderstandings before they arise. Detail what clients can expect in service levels and pricing. To demonstrate accountability, consider fair compensation policies like offering credits for service disruptions or missed deliverables. While the percentage may vary, this shows your commitment to client satisfaction and mutual protection.

Keep Up with New Services

As you expand into offerings like AI or enhanced security, your agreements must adapt. Specify straightforward terms for billing, payments, and intellectual property rights. Include mechanisms for adjusting fees in response to rising costs and establish clear processes for renewals and service terminations that benefit both parties.

Key Areas to Review in Your MSP Agreements

Now that you know the importance of regular customer contract review, let’s tackle the next question. What to look out for? Here’s a checklist:

1. Scope of Services

  • Have you clearly defined what’s included, and more importantly, what’s not?
  • Do your service descriptions match your current offerings?
  • Are response times and service levels explicitly stated?

2. Pricing and Fee Adjustments

  • Does your agreement include provisions for periodic pricing updates?
  • Have you included language allowing for cost adjustments due to vendor price increases?
  • Are payment terms and late payment consequences clearly outlined?

3. Risk Allocation

  • Do you have explicit exclusions for criminal acts like ransomware?
  • Are liability caps in place to protect your MSP from excessive exposure?
  • Have you included indemnification clauses for client-caused issues?

4. Data Processing and Compliance

  • Do your agreements include updated data processing terms for GDPR, HIPAA, and state privacy laws?
  • Are roles and responsibilities clearly defined for data handling?
  • Have you addressed cross-border data transfer requirements?

5. Termination and Renewal

  • Are auto-renewal terms clearly stated?
  • Do you have protection against early termination?
  • Is there a clear process for service transitions?

6. Cybersecurity Responsibilities

  • Have you clearly stated client obligations for security measures?
  • Is there language excluding liability for breaches caused by ignored security recommendations?
  • Are incident response procedures defined?

7. Third-Party Vendor Exclusions

  • Does your agreement include a schedule of third-party services with clear liability exclusions?
  • Have you addressed vendor management responsibilities?
  • Are there provisions for vendor changes or failures?

Download Your Free MSP Agreement Checklist

To help you thoroughly evaluate your MSP customer agreements, we’ve created a comprehensive checklist covering all critical areas. This resource will help you:

  • Identify gaps in your current agreements
  • Assess compliance with the latest regulations
  • Strengthen your legal protections

Download the MSP Agreement Checklist Now

Why Strong Contracts Are a Competitive Advantage

A solid Master Services Agreement (MSA) needs to spell out exactly what you’ll do and how much it costs. No fancy language, just plain facts about your scope of services and prices. Most clients appreciate this straightforward approach, even if they weren’t thrilled about paperwork at first.

Having well-crafted, up-to-date agreements helps your MSP stand out and protects your business.

Here’s how:

1. Building Trust Through Transparency

  • Clear agreements spell out services, pricing, and terms
  • Some clients resist signing MSAs at first
  • Fair compensation terms show clients you value their satisfaction

2. Demonstrating Professionalism and Expertise

  • Well-defined contracts prevent disputes and misunderstandings
  • Set up repeatable processes to help your business scale
  • Make client interactions smoother

3. Supporting Scalable Growth

  • Update contracts as your MSP adds new services
  • Adjust pricing models to match market changes
  • Contracts work with you, not against you, as you grow

4. Reducing Operational Friction

  • Clear terms simplify how you manage client relationships
  • Make billing and service delivery straightforward
  • Integration with sales tools lets you handle contracts and sales in one step
  • Agreements update automatically when included in quotes

Remember: Strong contracts do more than protect your MSP legally, they help you run a better business and stand out from competitors while supporting steady growth.

The Monjur Advantage

Our Contracts-as-a-Service (CaaS) solution simplifies how MSPs handle legal agreements. We keep your contracts up-to-date as the industry changes. Here’s what we offer:

Dynamic Updates for Regulatory Changes

 

 

Your agreements stay current with laws like GDPR, HIPAA, and CMMC. Our data processing updates cover privacy laws across regions, from the EU and UK to U.S. federal rules and state laws in California, New York, Colorado, Connecticut, Virginia, Utah, and Texas. When laws change, your agreements change with them.

Integration with Your Sales Process

We work with tools you already use, QuickBooks, ConnectWise, and Autotask. Smart hyperlinks fit right into your quotes. When clients say yes to a quote, they automatically agree to all legal terms. This makes your sales process smoother and keeps clients on the latest terms.

Customized Terms for Your Specific Needs

We’ve spent 20 years and helped 580+ MSPs with contracts. We take our proven templates and adjust them to fit your business. During setup, we work with you on every detail, from service lists to vendor agreements. This gives you complete legal coverage that matches how you work.

Ongoing Legal Support

Our lawyers are here when you need advice or run into problems. We know the ins and outs of MSP contracts and regulations. This lets you focus on growing your business while we handle the legal details.

Actionable Next Steps

Here are some steps you can follow to evaluate your MSP customer contracts:.

Review Your Current Agreements

Check if your contracts match MSP industry standards. It includes service scope, pricing, and liability for cyber attacks, vendor issues, or criminal acts. Outline what services you’ll provide, your response times, and problem-solving steps. List services you won’t provide to avoid misunderstandings.

Identify and Prioritize Gaps

Make a list of what needs immediate attention. Focus on terms that put your MSP at risk, like outdated privacy rules. Handle major issues before minor updates.

Consider Dynamic Contracts

Your agreements should adapt as your business changes. Regular MSP Customer contract review helps match them to your current tech and industry standards. Dynamic agreements update automatically with new laws and regulations, so you don’t have to do it manually.

Contact Monjur

Our solution keeps your contracts current and matched to your needs. We make client relationships easier with agreements that grow with your business.

Don’t let outdated agreements put your business at risk. Contact us today to discuss how Monjur can help protect your business and enhance your client relationships.