A business Associate Contract or Business Associate Agreement is a written arrangement that specifies each party’s responsibilities when it comes to PHI. HIPAA requires Covered Entities to only work with Business Associates who assure complete protection of PHI. These assurances have to be in writing in the form of a contract or other agreement between the Covered Entity and the Business Associate. Business Team Definition: A legal business associate contract between a two or more organizations that will receive access to, transmit, or store Protected Health Information (PHI) as part of its services for the provider.