The 10 SaaS Agreement Clauses to Check Before You Subscribe

The vendor grants itself the right to use your data to train models or "improve the service," which can expose confidential information.

What to do: Require that your data is never used to train general-purpose or shared models, and is processed only to provide the service to you.

If a breach or outage costs you dearly, the vendor's total liability is capped at roughly one month of fees, a fraction of the real risk.

What to do: Push for a higher cap (e.g. 12 months of fees) and a carve-out for data breaches and confidentiality violations.

The subscription auto-renews for another year unless you cancel far in advance, miss the window and you are locked in and billed.

What to do: Shorten the notice period, require advance renewal reminders, and calendar the deadline the day you sign.

The vendor can raise prices at renewal by any amount, with little notice.

What to do: Negotiate a cap on annual increases (e.g. no more than 5–7%) and a minimum notice period.

The vendor can change the contract at any time, and simply continuing to use the product counts as your acceptance.

What to do: Require advance written notice of material changes and a right to terminate without penalty if you object.

There is no guaranteed uptime and no compensation if the service goes down and disrupts your business.

What to do: Ask for a defined uptime commitment (e.g. 99.9%) with service credits for missed targets.

When you leave, it is unclear whether you can export your data or whether the vendor deletes it, risking lock-in or lingering copies.

What to do: Require a defined export window in a usable format, and certified deletion of your data after termination.

You grant the vendor a sweeping license to your uploaded content that goes beyond what is needed to run the service.

What to do: Limit the license strictly to hosting and delivering the service to you, and confirm you retain ownership.

You must cover the vendor's legal costs across broadly defined scenarios, some outside your control.

What to do: Narrow your indemnity to your own misuse, and make core indemnities mutual.

Disputes must be arbitrated in the vendor's home jurisdiction under rules that favor them.

What to do: Seek a neutral venue, or at least mutual terms and the right to pursue small claims.