Clause guide
Business Continuity Clause clause: meaning, risks, and what to negotiate
Requires a party to maintain plans and processes to keep critical services running during disruptions.
What it means
For important services, customers may need assurance that operations can continue during incidents, outages, staffing failures, or external disruption.
Common risks
- • Continuity obligations may be vague or unenforceable.
- • There may be no testing or evidence of real preparedness.
- • The clause may create heavy compliance obligations.
What to check before signing
- • Is there a documented business continuity plan?
- • How often is it tested and updated?
- • What service levels apply during disruption?
Negotiation ideas
- • Require a written and regularly tested continuity plan.
- • Limit obligations to critical services where justified.
- • Request summary evidence rather than overly intrusive audit rights.
Example clause
“Provider shall maintain and periodically test a business continuity plan reasonably designed to support continued delivery of the critical Services during operational disruption.”
Frequently asked questions
What is a business continuity clause?
It is a clause requiring planning and preparedness to keep services running during disruption.
Related clauses
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