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Does Your SaaS Agreement Cover Downtime?

SaaS subscription agreement software

When you’re selling software-as-a-service (SaaS) subscriptions, it’s important to reduce your liability risk for downtime when your service is unavailable.

Your customers should know that (a) there will be downtime and (b) you’re not liable for most SaaS interruptions (e.g., no refunds).

Common SaaS downtime causes include…

* Routine maintenance

* Software upgrades

* Third-party server downtime (e.g. Amazon’s AWS)

You may want to treat uncommon downtime causes differently (e.g., credit for the downtime or partial refund).

For example, let’s say an “Act of God” event knocks you offline for a few weeks (e.g., a Category 5 hurricane strikes)

No matter how you handle downtime, it should be clearly addressed in your SaaS subscription agreement so your customers can understand and agree to the terms.

If you need help with your SaaS subscription agreement or other software contracts, the first thing to do is set up a phone consultation with Software Lawyer Mike Young.

Mike Young, Esq.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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