Web hosting agreement template

For businesses that rely on third-party services to host their websites, web hosting agreements are crucial.

In this article, we’ll explore web hosting agreements, their purpose, management and use. We'll also discuss traditional contract management methods, and how Juro can automate this process.

What is a web hosting agreement?

A web hosting agreement is a legally binding contract between a web hosting service provider and a client. It outlines the terms and conditions under which the provider will host the client’s website on its servers. 

Typically, a web hosting agreement covers aspects such as uptime guarantees, security measures, data backups, customer support and payment terms. By setting clear expectations and responsibilities, a web hosting agreement helps both parties understand their obligations and ensures a smooth business relationship.

What is the purpose of a web hosting agreement?

The primary purposes of a web hosting agreement include:

• Service provision: Clearly defines the hosting services provided, including the type of hosting (shared, VPS, dedicated), storage capacity, bandwidth and any additional features – such as email hosting, database support and security measures.
• Uptime guarantees: Specifies the expected uptime percentage, ensuring the website remains accessible to users. This includes any compensation or recourse if the uptime falls below the agreed level.
• Support and maintenance: Outlines the level of technical support provided, including response times, support channels (e.g. email, phone, live chat) and any maintenance schedules that may affect website availability.
• Fees and payment terms: Details the costs associated with the hosting services, including setup fees, monthly or annual charges and payment due dates. It may also cover any additional charges for exceeding usage limits or for optional services.
• Term and termination: Defines the duration of the agreement and the conditions under which either party can terminate the contract. This section typically includes notice periods and any penalties or fees for early termination.
• Responsibilities and obligations: Outlines the responsibilities of both the hosting provider and the client, including data backup, security measures and acceptable use policies. This ensures both parties understand their roles in maintaining the website's performance and security.
• Liability and indemnification: Addresses the limits of liability for both parties, protecting them from potential damages or losses resulting from the hosting services. It may also include indemnification clauses, where one party agrees to compensate the other for any losses or damages arising from specific actions or omissions.
• Dispute resolution: Establishes the procedures for resolving any disputes that may arise during the term of the agreement – including mediation, arbitration or legal action.

By clearly outlining these aspects, a web hosting agreement helps ensure a smooth and reliable hosting experience for the client while protecting the interests of both parties.

Who manages web hosting agreements?

Web hosting agreements are typically managed by various teams within a business, depending on the company’s size and structure.

Legal teams draft and review the agreements to ensure they are legally sound and protect the company’s interests. IT departments oversee the technical aspects of the agreement, ensuring that the hosting services meet the required standards and performance metrics. Procurement teams handle the negotiation and renewal of contracts with hosting providers. And business and operations teams monitor the overall performance and compliance of the hosting services with the terms of the agreement.

When are web hosting agreements used?

Web hosting agreements are used in several scenarios to establish clear terms and responsibilities between a web hosting service provider and a client. Here are the common instances when these agreements are used:

Launching a new website. When an individual or business is setting up a new website and needs a hosting service to make their site accessible on the internet.

Switching hosting providers. If a client is moving their website from one hosting provider to another, a new web hosting agreement will be necessary to outline the terms with the new provider.

Upgrading hosting services. When a client needs to upgrade their hosting services (e.g. from shared hosting to dedicated hosting) due to increased traffic or resource requirements, a new or amended agreement will outline the terms of the upgraded services.

Renewing hosting services. At the end of an existing hosting term, if the client decides to renew their services, a new agreement or renewal clause will specify the terms for the continued service.

Custom hosting solutions. For businesses that require specialized hosting solutions – such as high-security environments, custom configurations or managed services – a tailored hosting agreement will detail these specific requirements.

Reseller hosting arrangements. When a business offers hosting services to its own clients by reselling services from a larger hosting provider, a reseller hosting agreement is used to define the terms between the reseller and the hosting provider.

Corporate or enterprise hosting. Large organizations often require detailed agreements for hosting multiple websites or complex web applications, ensuring that service levels and security measures meet corporate standards.

Compliance requirements. In industries with specific regulatory requirements (e.g. healthcare, finance), web hosting agreements are used to ensure that hosting services comply with relevant laws and standards – such as HIPAA or GDPR.

Disaster recovery and backup services. When hosting services include specific disaster recovery and backup provisions, these terms are outlined in the web hosting agreement to ensure data integrity and availability.

By using web hosting agreements in these scenarios, both the hosting provider and the client can clearly understand their obligations, rights and expectations, leading to a more stable and predictable hosting relationship.

What should a web hosting agreement template include?

A comprehensive web hosting agreement template should cover several essential elements:

Parties involved

Clearly identify the hosting provider and the client, including their legal names and contact information. This section should also state the date the agreement is entered into.

Services provided

Detail the hosting services, including:

• Types of hosting – shared, VPS, dedicated or cloud hosting.
• Resources allocated – disk space, bandwidth, CPU and RAM.
• Software support – operating systems, databases and scripting languages supported.

Uptime guarantees

Specify the minimum uptime percentage the provider guarantees – usually 99.9% or higher. This section should also outline any compensation or credits the client receives if the uptime falls below the guaranteed level.

Support and maintenance

Outline the technical support availability, including:

• Support hours – 24/7, business hours or specific times.
• Response times – how quickly the provider will respond to support requests.
• Maintenance schedules and how these will be communicated to the client.

Security measures

Describe the security protocols, data protection measures and backup procedures, including:

• Data encryption, in transit and at rest.
• Firewall protection policies and configurations.
• Frequency of data backups and retention periods.

Payment terms

Define the pricing, payment schedule, and any penalties for late payments, including:

• Any initial setup costs.
• Recurring fees – monthly, quarterly, or annual payments.
• Additional charges – fees for exceeding resource limits or requesting additional services.

Termination clauses

Include conditions under which either party can terminate the agreement, such as:

• Breach of contract – failure to meet uptime guarantees or other terms.
• Notice period – required notice period for termination.
• Refund policies – any refunds or penalties upon termination.

Dispute resolution

Provide mechanisms for resolving disputes, such as mediation or arbitration, and the jurisdiction under which the contract will be governed.

Confidentiality

Ensure that sensitive information is protected and not disclosed without consent. This section should cover:

• Non-disclosure agreements (NDAs) – to protect proprietary information.
• Data privacy – compliance with data protection regulations like GDPR or CCPA.

Compliance

Ensure compliance with relevant laws and regulations, including data protection laws. This section should specify:

• Regulatory requirements – specific laws the provider must adhere to.
• Audit rights – the client’s right to audit the provider’s compliance with these regulations.

The manual approach to managing web hosting agreement templates

Managing web hosting agreements manually involves several steps, ensuring that all aspects of the contract are properly handled from creation to renewal or termination. Here is a detailed explanation of the manual process:

1. Drafting the agreement

A standard template is prepared, including all necessary sections like scope of services, fees, terms, and conditions. The template is customized for each client, detailing specific requirements, services provided, pricing, and other unique terms. The draft is reviewed by legal experts to ensure compliance with relevant laws and to protect both parties' interests.

2. Negotiation and approval

The draft agreement is sent to the client for review. Any changes or negotiations are conducted via email, phone calls, or meetings until both parties agree on the terms. Once agreed, the final version of the agreement is prepared.

3. Signing the agreement

The final agreement is printed, and both parties sign the document. This can be done in person or via mail. Alternatively, the agreement can be signed electronically using e-Signature software, if both parties agree to this method.

4. Document distribution and storage

Copies of the signed agreement are distributed to both parties. Physical copies are stored in a secure location, such as a filing cabinet. Scanned copies are saved in a secure digital repository, such as a shared drive or a document management system.

5. Implementation and monitoring

The hosting provider sets up the services as per the agreement. Both parties monitor compliance with the terms of the agreement. The hosting provider ensures service quality and uptime, while the client adheres to payment schedules and acceptable use policies.

6. Billing and payments

The hosting provider manually generates invoices according to the agreed payment schedule. Payments are tracked manually through accounting software or ledgers to ensure timely receipts.

7. Support and maintenance

Support requests are managed through a manual ticketing system, emails or phone calls. Maintenance activities and downtimes are logged manually to track service performance and compliance with the agreement.

8. Renewals and termination

Renewal reminders are set manually (e.g. calendar alerts). Any changes for the renewal term are negotiated manually and a new agreement or addendum is prepared and signed. If either party decides to terminate the agreement, a manual process is followed to provide notice, settle accounts and discontinue services.

9. Record-keeping and audits

Periodic audits are conducted manually to ensure all agreements are current and compliance is maintained. Any changes to agreements, such as amendments or renewals, are manually updated in both physical and digital records.

10. Dispute resolution

Any disputes are handled through manual processes, involving communication between the parties, mediation sessions or legal proceedings if necessary.

Automate web hosting agreements with Juro

Managing web hosting agreements manually requires meticulous attention to detail and thorough record-keeping to ensure all aspects of the contract lifecycle are handled efficiently and compliantly.

Thankfully, Juro’s AI-native contract management platform offers a solution to these challenges by automating the creation, execution and management of web hosting agreements.

Automated contract drafting

• Template library. Maintain a library of standardized web hosting agreement templates that can be easily customized for each client.
• Dynamic fields. Use dynamic fields to automatically populate client-specific information, reducing the need for manual entry and minimizing errors.

Efficient negotiation and approval

• Collaborative editing. Enable real-time collaborative editing, allowing both parties to suggest and accept changes directly within the platform.
• Approval workflows. Set up automated approval workflows to streamline the review process, ensuring all necessary stakeholders approve the agreement promptly.

Electronic signing

• Native electronic signature capabilities. Allow parties to sign the agreement digitally, speeding up the signing process and reducing the need for physical paperwork.

Centralized document storage

• Single repository. Store all agreements in a centralized and secure digital repository, making it easy to access and manage documents from anywhere.
• Version control. Maintain version control to track changes and make sure that the most recent agreement is always available.

Implementation and performance monitoring

• Automated reminders. Set up automated reminders for key milestones like service setup, maintenance schedules and compliance checks.
• Real-time dashboards. Use real-time dashboards to monitor service performance and compliance with the terms of the agreement.

Billing and payments

• Automated invoicing. Automate the generation and distribution of invoices based on the terms specified in the agreement.
• Payment tracking. Integrate payment tracking to monitor receipts and send automated reminders for overdue payments.

Support and maintenance

• Integrated ticketing. Integrate a ticketing system within the platform to manage support requests efficiently.
• Maintenance logs. Automate the logging of maintenance activities and downtimes, ensuring accurate and up-to-date records.

Easy renewals and termination

• Automated renewal alerts: Set up automated alerts to notify both parties of upcoming renewal dates well in advance.
• Easy renegotiation. Facilitate easy renegotiation of terms within the platform, enabling quick amendments and renewals.

Record-keeping and audits

• Audit trails. Maintain detailed audit trails of all actions taken within the platform, ensuring transparency and accountability.
• Compliance checks. Automate compliance checks to make sure all agreements meet regulatory and legal requirements.

Dispute resolution

• Centralized communication. Use the platform to centralize communication related to disputes, so that all discussions and resolutions are documented.
• Automated workflows. Implement automated workflows for dispute resolution processes – from initial notification to final settlement.

By leveraging Juro’s capabilities, the manual process of managing web hosting agreements can be transformed into a streamlined, efficient and error-free workflow, providing significant benefits in terms of time savings, accuracy and compliance.

Juro's AI-native contract automation platform empowers all teams to create, agree, execute and manage contracts up to 10x faster than traditional tools. To find out more, hit the button below to book your personalized demo.