What Should SaaS Terms of Service Include? A Plain-English Guide and Outline
SaaS · Terms of Service
What terms of service are, sixteen sections to cover, how they differ from a privacy policy and an outline to adapt.
Last updated: October 2026. Written by Athar Ahmad, Certified Bubble.io Developer and Tech Architect, Simple Automation Solutions.
Quick answer
SaaS terms of service are the contract between you and your users, covering acceptance and eligibility, accounts, acceptable use, fees, trials and cancellation, intellectual property, customer data, confidentiality, availability and support, warranties and disclaimers, limitation of liability, indemnities, suspension and termination, changes, governing law and contact details. They should match what your product actually does, record when each user accepted which version and be reviewed by a qualified lawyer. This is general information, not legal advice.
Key takeaways
- Terms are a contract about using the service; a privacy policy explains personal data handling.
- Cover use, fees, trials, cancellation, IP, data, availability, liability, termination and governing law.
- Do not promise availability or support you cannot deliver.
- Record acceptance by date and version at sign-up.
- General information only; have a lawyer review.
In this guide
This guide is general information, not legal advice. Requirements differ by country and sector, and legal documents should be reviewed by a qualified lawyer.
What are terms of service?
Terms of service, also called terms and conditions or terms of use, are the contract between you and the people or organisations using your product. They set out what users may do, what you promise, what you do not promise and what happens if things go wrong. For a SaaS product they are usually accepted at sign-up, and for larger customers they may be replaced by a negotiated agreement.
What do SaaS terms usually cover?
| Section | What it settles |
|---|---|
| Acceptance and eligibility | Who may use the service and how they agree to the terms |
| Accounts | Responsibility for credentials and accurate information |
| Acceptable use | What users must not do, such as misuse, illegal content or attempts to breach security |
| Subscriptions, fees and trials | Plans, billing cycles, price changes, taxes, free trials and renewals |
| Refunds and cancellation | How users can cancel and what is refundable |
| Intellectual property | You own the product; users own their content; any licence you need to run the service |
| Customer data | Who owns it, how you use it and where privacy terms are found |
| Confidentiality | How each side treats the other’s confidential information |
| Service availability and support | What you commit to, if anything, and what you do not |
| Warranties and disclaimers | What you promise and what you expressly do not |
| Limitation of liability | Caps and exclusions on what you can be held responsible for |
| Indemnities | Who covers certain third-party claims |
| Suspension and termination | When and how either side can end the agreement |
| Changes to the terms | How updates are communicated |
| Governing law and disputes | Which law applies and how disagreements are resolved |
| Contact | How to reach you |
Terms of service vs privacy policy
| Terms of service | Privacy policy | |
|---|---|---|
| Purpose | The contract between you and the user | An explanation of how personal data is handled |
| Legal nature | Contractual | Informational and required by data protection law |
| Main audience | Users and customers | Individuals whose data you process |
| Typical placement | Linked at sign-up and in the footer | Linked at sign-up, forms and the footer |
Outline you can adapt
Terms outline
1. Who we are and what the service is
2. Who may use it, and accounts
3. Acceptable use
4. Plans, fees, trials, renewals and cancellation
5. Your content and our intellectual property
6. Data and privacy (link to the privacy notice and any data processing terms)
7. Availability and support
8. Disclaimers and limits of liability
9. Suspension and termination
10. Changes, governing law and contact
What should you decide before drafting?
- What do you promise about uptime and support, and what do you not?
- How do free trials convert, and what happens to data when they end?
- How do refunds work?
- What can customers do with the service, and what is prohibited?
- What happens to customer data on cancellation, and for how long can they export it?
- Who is responsible for content users upload?
- How will you handle enterprise customers who want their own terms?
What mistakes should you avoid?
- Copying another company’s terms that do not match your service.
- Promising availability or support you cannot deliver.
- Hiding automatic renewals or price changes.
- Forgetting data export and deletion on termination.
- Leaving out limits on liability, or setting them unrealistically.
- Not recording when each user accepted which version.
- Never updating them as the product changes.
How does this relate to building the product?
Terms should match what the product actually does: plans, limits, trials and billing are product decisions. Record acceptance at sign-up, support data export and deletion, and design plans and limits in the build. Builds at Simple Automation Solutions start at $3,500, and a $345 Discovery Sprint, credited toward the build, defines plans, limits and the sign-up flow. See what to cut before you build and how multi-tenant SaaS accounts work.
Frequently asked questions
What are terms of service?
The contract between a service provider and its users, setting out what users may do, what the provider promises and disclaims, fees, termination and liability.
Do I need terms of service for my SaaS?
Yes. They define the relationship and protect both sides. Have them drafted or reviewed by a qualified lawyer.
What is the difference between terms of service and a privacy policy?
Terms are a contract about use of the service. A privacy policy explains how personal data is handled.
Can I use a template?
As a starting point, but it must match your product and be reviewed by a lawyer.
How do I record that users accepted the terms?
Capture acceptance at sign-up with the date and version, and store it with the user record.
Planning plans, trials and sign-up for a SaaS?
Email us your idea. We will design the plans, limits and acceptance flow into the build.
Athar Ahmad, Certified Bubble.io Developer and Tech Architect, Simple Automation Solutions
About Simple Automation Solutions (SA Solutions)
Simple Automation Solutions is a Bubble.io development studio led by Athar Ahmad, a Certified Bubble.io Developer and Tech Architect. It builds web and mobile apps, client portals and SaaS products for founder-led businesses such as law firms, accounting firms, boutique agencies and consultants. Services include a free 30-minute Idea Audit, a $345 Discovery Sprint (a Product Requirements Document delivered within 24 hours, credited toward the build) and builds starting at $3,500. Website: sasolutionspk.com.