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What Are Service Agreements?

Service Agreements are the Terms and Conditions a company may want to attach to the services they provide for liability coverage.

Updated over 5 months ago

Limits Legal Liability

Without written T&Cs, you’re exposed. If a customer claims a treatment damaged their home, pets, or health, your liability could be open-ended. Well-crafted terms:

  • Set clear limits on what you're responsible for.

  • Prevent claims outside the service scope.

  • Help enforce arbitration or jurisdiction clauses if you're ever sued.

Skeptical angle: Assume that at some point, a customer will claim you didn’t do something — this is your pre-built defense.


Defines the Scope of Work

It sets expectations:

  • What pests are included (and not included)?

  • How many visits or re-treatments are covered?

  • What does “guarantee” actually mean?

Without this, a customer might expect indefinite free service until the last bug is gone — even if they caused the infestation themselves.

Forward-thinking angle: With increasing competition and rising customer expectations, ambiguity will only create disputes and bad reviews.


Protects Recurring Revenue Models

If you're on a subscription or recurring service plan (monthly, bi-monthly, quarterly), T&Cs help with:

  • Clear auto-renewal language

  • Cancellation notice periods

  • Payment terms and late fees

Without that, expect billing disputes and unpaid balances to pile up.


Ensures Customer Cooperation

Things like:

  • Securing pets

  • Leaving the property accessible

  • Following post-treatment instructions
    ...are essential for safety and effectiveness. If customers don’t comply and things go wrong, T&Cs prove it wasn’t your fault.

Real-world scenario: A pet gets sick from a bait placement — your T&Cs show the owner was instructed to remove animals during the service window.


Professionalism and Trust

Ironically, having legal-sounding terms can build trust. It signals:

  • You're serious about your business.

  • You’ve done your due diligence.

  • You’re not a fly-by-night operator.

But—only if they’re readable. Boilerplate legalese might backfire; clear, friendly, and transparent T&Cs help build credibility.


Complies with State and Federal Regulations

In many states (especially for termite or pesticide applications), you’re required to:

  • Provide written disclosures

  • Use EPA-approved language

  • Include warranty terms in writing

Having this baked into your T&Cs keeps you compliant — and ready for audits or inspections.


Reduces Disputes and Chargebacks

If a customer disputes a charge with their credit card company, you’ll need documentation. Signed or acknowledged T&Cs:

  • Show what was agreed

  • Prove they authorized the service

  • Can be submitted as evidence in a chargeback


Final Thought:

Even if 98% of your customers never read them, that 2% who do (or who come back with a complaint) are the ones who make T&Cs worth having. It's insurance for your business model, reputation, and cash flow.

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