First the bad news. There are still a lot of MSPs who are in danger because they have not taken a few simple steps towards protecting their managed services practices. These companies are largely unaware of the peril they face each day by not having basic legal documents that can provide a wide range of protection. Now the good news; help is available and very easy to find. The following are just a few of the ways MSPs have left themselves exposed legally.
I have always been amazed at how some companies can do business on a handshake and still feel safe. I remember one company actually said they never had their clients sign contracts because they wanted the client to trust them. It's good to want people to trust you but not by leaving yourself exposed without a contract.
Template service contracts have been floating around in the channel for a long time. If you use a template in your managed services practice you may not be protected. Think of it this way. Templates are generic documents that only work if they are customized to fit. A template SLA was never written for your company, doesn't take into account your unique business characteristics, and therefore, cannot provide you with adequate legal protection. If you have a template SLA or other legal document, you should have it reviewed by an attorney.
There are a lot of potential threats facing MSPs today and the stakes are very high. Whether you need a contract reviewed or you need some advice about your managed services practice, you can call our legal hotline (www.mspalliance.com//legalhotline) and talk to an attorney who specializes in managed services law. Don't let your practice remain at risk.
