Guide

What should my MSP contract include?

By Mike Sullivan, Founder of Sullivan-Solutions LLC. Published November 1, 2026.

A good MSP contract says what's covered and what isn't, how fast they respond, what out-of-scope work costs, who owns your data and accounts, and how you leave. If you can't find those in your agreement, ask before you renew.

A clear contract protects both sides. Most frustration with an MSP comes from something each side assumed the other was handling.

What to look for

SectionWhat it should tell you
ScopeExactly which services, users, devices, locations and hours are covered
ExclusionsWhat isn't covered, such as projects, new hardware or after-hours work
Service levelsResponse and resolution targets for each priority level, and what happens if they're missed
FeesMonthly price, how it changes as you add users, setup fees and the rate for out-of-scope work
SecurityWhich protections are included, who watches the alerts and what reports you'll get
BackupsWhat's backed up, including Microsoft 365, and how often restores are tested
Client dutiesWhat your team has to do, so nobody is surprised later
Data and accessThat you own your data, and who holds your admin credentials and documentation
LiabilityHow responsibility is limited, including after a security incident
Term and exitLength, renewal terms, notice period, early termination costs and how data and access get handed back

Five questions to ask before you renew

  1. If this contract ended tomorrow, how would we get our data, credentials and documentation?
  2. Does it renew automatically, and when is the notice deadline?
  3. What's the most common thing clients assume is covered but isn't?
  4. How will we see whether service levels are being met?
  5. Which of these services would help us answer our cyber insurance application?

Watch the exit terms

Read the termination section closely. An early termination fee equal to the rest of the contract, or a vague promise about handing over your data, is worth raising now, while everyone is on good terms.

This is general information, not legal advice. Have your attorney review any contract before you sign it.