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Disaster Recovery as a Service Agreement

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DISASTER RECOVERY AS A SERVICE AGREEMENT

This Disaster Recovery as a Service Agreement ("Agreement") is entered into as of Effective Date: by and between Client Name: with principal address Client Address: , and Provider Name: with principal address Provider Address: .

RECITALS

WHEREAS, Client operates critical information systems and desires continuity of operations in the event of system outage, data loss, or other disaster; and

WHEREAS, Provider offers disaster recovery services including replication, failover, restoration, and testing of systems and data; and

WHEREAS, the parties desire to set forth the terms under which Provider will deliver Disaster Recovery as a Service ("DRaaS") to Client.

SCOPE OF WORK

Provider shall furnish DRaaS as described in this Section and in any Statement of Work executed by the parties. Services include but are not limited to replication of designated systems, scheduled backups, failover orchestration, restoration, and failback procedures.

SERVICE LEVELS

Provider will use commercially reasonable efforts to meet the recovery objectives set forth below. Service Levels apply to supported systems listed in the Detailed Scope.

Recovery Time Objective (RTO):    Recovery Point Objective (RPO):

Availability Target: Provider will maintain the replication environment with an annualized uptime target of .

PAYMENT TERMS

Client shall pay Provider the fees set forth below in consideration for the Services. Unless otherwise agreed in a signed Statement of Work, fees are non-refundable.

Monthly    Quarterly    Annual    Per Incident

Overdue amounts shall bear interest at the rate of and Provider may suspend Services after days' written notice of non-payment.

TERM AND TERMINATION

This Agreement commences on Start Date: and, unless earlier terminated in accordance with this Agreement, continues until End Date: .

Either party may terminate this Agreement for convenience upon days' prior written notice to the other party. Either party may terminate immediately for material breach that remains uncured for thirty (30) days after written notice specifying the breach.

CONFIDENTIALITY

Each party shall maintain in confidence all Confidential Information of the other party and shall not disclose such information except to employees, contractors, or agents with a need to know who are bound by confidentiality obligations at least as protective as those set forth herein. "Confidential Information" includes Client data, system architectures, operational plans, and security credentials, but excludes information that is or becomes publicly available other than by breach of this Agreement, or that is independently developed without use of the disclosing party's Confidential Information.

LIMITATION OF LIABILITY AND INDEMNIFICATION

Except for liability arising from gross negligence, willful misconduct, or breaches of confidentiality or data protection obligations, neither party shall be liable to the other for indirect, incidental, consequential, special, or punitive damages. Provider's aggregate liability for all claims arising out of or relating to this Agreement shall not exceed the total fees paid by Client to Provider under this Agreement during the twelve (12) months preceding the claim.

Client shall indemnify and hold harmless Provider from claims arising from Client's negligence, misuse of the Services, or breach of this Agreement, except to the extent caused by Provider's gross negligence or willful misconduct.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its choice of law principles.

ENTIRE AGREEMENT

This Agreement, including all Statements of Work and attachments executed by the parties, constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior or contemporaneous oral or written agreements. No amendment shall be effective unless in writing and signed by authorized representatives of both parties.

NOTICES

All notices under this Agreement shall be in writing and delivered to the contact information below or to such other address as a party designates by written notice in accordance with this Section.

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. The parties are independent contractors; nothing in this Agreement creates a partnership, joint venture, or employment relationship. Neither party may assign this Agreement without the prior written consent of the other, except that Provider may assign to an affiliate or in connection with a merger or sale of substantially all of its assets.

Client

Party Label:

By:

Date:

Provider

Party Label:

By:

Date:

Enter text✕

What the Disaster Recovery as a Service Agreement Covers

A Disaster Recovery as a Service Agreement is a contract that sets the responsibilities, deliverables, and measurable recovery commitments between an organization and a third-party provider. Typical terms include scope of covered systems, recovery time objectives (RTO) and recovery point objectives (RPO), data replication and backup methods, security controls, testing schedules, service-level targets, incident escalation contacts, pricing, remedies for missed SLAs, and termination or transition procedures to protect business continuity and regulatory compliance.

Why a Clear Agreement Protects Your Operations

A written agreement reduces ambiguity, sets measurable expectations, and documents remedies for service failures. It helps meet regulatory obligations where applicable, supports auditability of recovery tests, and provides a single reference for roles, timelines, and costs during and after an incident.

Why a Clear Agreement Protects Your Operations

Who Prepares and Signs This Agreement

Common signers include cloud DR vendors, CIOs, IT directors, compliance officers, and procurement or legal teams responsible for vendor contracts.

  • Real estate and property managers requiring off-site recovery of tenant data and critical systems.
  • Healthcare providers needing HIPAA-compliant continuity and rapid patient data restoration following incidents.
  • Financial services and legal firms requiring auditable recovery plans with strict chain-of-custody controls.

Confirm that listed signers have authority to bind their organization and update contact and escalation details before execution.

Step-by-Step: Prepare and Finalize the Agreement

Follow these steps to prepare, complete, and finalize a Disaster Recovery as a Service Agreement in a clear, auditable way.

  • 01
    Gather Information: Collect system inventory, RTO/RPO targets, and vendor documentation.
  • 02
    Define Scope: Specify covered assets, data types, and geographic limits.
  • 03
    Agree SLAs: Set RTO, RPO, availability targets, and remedies.
  • 04
    Sign & Test: Execute agreement and perform an initial failover exercise.

Core Contract Elements to Include

A robust agreement combines technical detail with legal clarity so both parties have measurable obligations and a repeatable procedure for recovery validation and dispute resolution.

Scope of Services

Define systems, datasets, geographic boundaries, and exclusions in detail so there is no ambiguity about what the vendor will restore and what remains the customer's responsibility.

Recovery Objectives

Specify numerical RTO and RPO targets for each system or workload and describe how compliance will be measured during tests and incidents.

Data Replication

Document replication cadence, retention windows, encryption methods in transit and at rest, and the vendor's processes for data integrity verification.

Testing & Exercises

Specify test frequency, scope, success criteria, reporting format, and remediation steps for failed tests to ensure ongoing readiness.

Security & Compliance

Require specific controls, audit logs, incident reporting timelines, and any needed compliance measures such as HIPAA BAA or SOC 2 obligations.

Fees & Remedies

Include pricing, billing schedules, SLA credits or liquidated damages, termination rights for repeated failures, and migration assistance on contract end.

Security and Compliance Checklist

Encryption Transit: TLS 1.2/1.3 required for data transfers
Encryption Rest: AES-256 encryption applied to stored data
Audit Trail: Timestamps, IP addresses, and action logs retained
Certifications: SOC 2 Type II and ISO 27001 controls
HIPAA Support: BAA available when handling PHI
FDA Records: 21 CFR Part 11–compatible features available

Consequences of an Inadequate Agreement

Data Loss: Permanent data loss or incomplete recovery
SLA Breach: Financial credits or contractual penalties
Regulatory Fines: Fines for noncompliance with sector rules
Business Interruption: Lost revenue and customer impact
Contract Termination: Early contract exit and transition costs
Reputational Harm: Customer trust and market impact

Common Preparation Errors to Avoid

  • Failing to quantify RTO and RPO per system leads to subjective dispute over performance and inadequate recovery prioritization during incidents.
  • Omitting regular test schedules or acceptance criteria results in unverified recoverability and surprises during an actual disaster.
  • Unclear data ownership and access procedures slow recovery and can trigger compliance breaches for regulated data sets.
  • Neglecting to list escalation contacts and responsibilities causes delayed decisions and slows failover or vendor coordination.

Typical Digital Execution Workflow

A streamlined e-submission and signing flow reduces turnaround time and preserves a secure audit trail for the agreement lifecycle.

  • Upload Document: Upload final agreement to the signing platform.
  • Place Fields: Add signature, initials, and date fields where needed.
  • Authenticate Signers: Use email, SMS OTP, or stronger methods as required.
  • Execute & Confirm: Signers complete signing; distribution and audit trail follow.

Digital Workflow Settings for eExecution

Recommended configuration choices streamline signing while meeting authentication and audit requirements.

Field Configuration
Authentication Email with SMS OTP for critical signers
Template Standard DR template with conditional fields
Notifications Sequential routing with escalation alerts
Testing Schedule Quarterly automated reminders and reports

Technical Requirements and Integrations

Choose a signing platform that supports the file formats, integrations, and authentication levels your legal and security teams require.

  • File Formats: PDF, DOCX, HTML supported
  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
  • Authentication: Email, SMS OTP, SSO, advanced auth

Key Dates and Timing Expectations

Set dates for activation, replication completion, initial test, and recurring reviews to keep the DR posture current.

Effective Date:

Date the agreement and obligations begin (MM/DD/YYYY)

Plan Activation:

Vendor to complete onboarding and initial setup within agreed days

Replication Complete:

Initial data replication finished and validated

First Test:

Initial failover test and acceptance criteria execution

Annual Review:

Contract and capability review at least once per year

eSignature Pricing and Feature Snapshot

Compare common pricing and feature considerations for executing agreements electronically; signNow is listed first for direct comparison.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common legal, technical, and execution questions about Disaster Recovery as a Service Agreements and their electronic execution.


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