July 6, 2021

Understanding Your Website Hosting Agreement

A website hosting agreement allows your website to get up and running, but do you know what you’re signing? It’s important not to skip over the fine print, in order to understand the hosting relationship that’s being created.

Getting your website up and running is one of the most important things you can do for your business. Once you have your domain name selected, it’s time to find a host, and that also means signing and adhering to a website hosting agreement.

If you’re a novice website owner, the process of getting a website up and running can seem intimidating, but it doesn’t have to be. Generally, web hosting service providers, also called web hosts, provide help for starting your site, which can make the task very much easier. Still, though, you want to be sure you understand the terms of your website hosting agreement, as it is a binding legal contract.


Web Hosting Basics

Before digging into the specifics of a simple website hosting service agreement, it’s important that you understand what your website host does for you.

A web host is an enterprise that offers the technologies and support services necessary for websites to appear on the internet. Your website will be “hosted” by this provider, which connects your website to their server, enabling internet users to find your site by typing in your domain name or clicking on your link through a search engine or on social media.

There are several types of hosting you may consider. Many first-time website owners choose shared hosting, which means you share your server space with other websites. A virtual private server is also shared, but with fewer sites sharing the space, and you generally receive a guaranteed baseline of services. By contrast, a dedicated server is yours alone, while cloud hosting pulls resources from several servers instead of being located on just one.

The pros and cons of each type of hosting is beyond the scope of this article, but rest assured that whether you’re signing a virtual server hosting agreement, a cloud hosting agreement, or even an agreement for both website hosting and maintenance, you should pay careful attention to the terms of your contract.

Typical Website Hosting Agreement Provisions

Although web hosting contracts differ, and you must always pay careful attention to your specific terms, most agreements cover the same basic issues:

  • Timing: the length of the contract (usually yearly, though sometimes monthly) and the date your service begins
  • Cost: the cost of your service, what that service includes, any setup fees, and the types of payments the company accepts
  • Renewal: usually automatic, and often with a notice that fees may change, so pay attention to those come renewal time
  • Dispute resolution: the venue and/or state law that applies to any disputes under the contract as well as what costs the prevailing party may recover, which may include legal fees
  • Intellectual property: your assurance that you have the right to use the copyrights and trademarks associated with your site
  • Termination: the specific steps to take when you want to change providers, such as notifying your current provider within a certain time period to avoid incurring additional fees

On the topic of termination, the provider often reserves the right to terminate the contract under certain conditions—upon written notice from the provider that you are in violation—such as your failure to comply with the terms of the agreement. For instance, if you receive a DMCA (Digital Millennium Copyright Act) Takedown request for content on your site but fail to timely remove it, your website hosting provider may terminate your services.

Website hosting companies generally also include a special statement that they make no warranties regarding their services, including connection speed. They also may expressly limit the damages the client may receive in the case of downtime of the server.

Having a website for your business is no longer an option, it’s essential, and a website hosting agreement is just like any other contract that details the rights and responsibilities of each party. Make sure you read and understand the terms, so you know exactly what you’re getting into the moment you sign one.

Benefits of Having a Terms and Conditions Agreement

There are a number of benefits that a Terms and Conditions agreement provides. Here are a few of the most important ones:

  • Protecting your business – Terms and Conditions are crucial to protecting your business as they create a binding agreement between you and your customers, the terms of which can be legally enforced in court.
  • Setting rules and expectations – Terms and Conditions create certainty and clarity by allowing your business to set user rules and expectations. Customers and business partners should know what to expect and understand what their rights and responsibilities are. This in turn makes them less likely to go back on their word and creates a mutual understanding between you and your end users.
  • Defining acceptable use of your website or app – Your Terms and Conditions informs everyone who uses your website or app what conduct is acceptable and what isn’t. For example, if your website enables visitors to leave comments, your T&C can specify that these must not be abusive in nature. It can also give you the right to ban users that are in breach of these terms.
  • Creating clear payment terms – Your Terms and Conditions advises users when payment is required, what methods of payment are acceptable and what happens if they fail to pay or pay late.
  • Protecting your intellectual property – It’s likely that your business has some intellectual property or trademarks to protect. Your Terms and Conditions can contain clauses that ensure the user understands what is subject to copyright and what this means.
  • Limiting your businesses liability – Your Terms and Conditions can limit your company’s liability and state that your business is not responsible for errors and omissions on your website or in other content you release.