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We have gone live with web application in this account. Can you please advise what should be the approach for Disaster Recovery? Do we need to manage this separately by having a separate Web application or is it already managed by PythonAnywhere Team? Your guidance will be appreciated.

Your approach would depend entirely on your requirements for disaster recovery. We do not provide anything, except that we have DR plans for the entire service, which includes daily backups of user files etc. If you need backups against errors on your part (like deleting files or databases), then you will need to do that yourself. We have a number of articles in our help pages about database backups.