Reciprocal Agreement (Definition)

A reciprocal agreement is an agreement made by two or more companies to use each other's resources during a disaster.

Care should be taken with reciprocal agreements to ensure that the businesses concerned are unlikely to be affected by the same disaster. For example, businesses in close proximity may all be affected by the same evacuation order, area power outage, telecommunications loss, flood, etc.

A Reciprocal Agreement may also be known as a Consortium Agreement.