diff --git a/spectrocloud/cluster_common_policies.go b/spectrocloud/cluster_common_policies.go
index fb6004bb..3dfa5fe7 100644
--- a/spectrocloud/cluster_common_policies.go
+++ b/spectrocloud/cluster_common_policies.go
@@ -80,12 +80,19 @@ func flattenBackupPolicy(policy *models.V1ClusterBackupConfig) []interface{} {
 	data["namespaces"] = policy.Namespaces
 	data["expiry_in_hour"] = policy.DurationInHours
 	data["include_disks"] = policy.IncludeAllDisks
-	data["include_cluster_resources"] = policy.IncludeClusterResources
+	data["include_cluster_resources"] = flattenIncludeResourceMode(policy.IncludeClusterResourceMode)
 	data["include_cluster_resources_mode"] = policy.IncludeClusterResourceMode
 	result = append(result, data)
 	return result
 }
 
+func flattenIncludeResourceMode(m models.V1IncludeClusterResourceMode) bool {
+	if m == models.V1IncludeClusterResourceMode("Always") {
+		return true
+	}
+	return false
+}
+
 func updateBackupPolicy(c *client.V1Client, d *schema.ResourceData) error {
 	if policy := toBackupPolicy(d); policy != nil {
 		//clusterContext := d.Get("context").(string)
diff --git a/spectrocloud/cluster_policies_test.go b/spectrocloud/cluster_policies_test.go
index 64d605ef..e4bf4908 100644
--- a/spectrocloud/cluster_policies_test.go
+++ b/spectrocloud/cluster_policies_test.go
@@ -76,13 +76,14 @@ func TestFlattenBackupPolicy(t *testing.T) {
 
 	expected := []interface{}{
 		map[string]interface{}{
-			"schedule":                  "daily",
-			"backup_location_id":        "location-123",
-			"prefix":                    "backup-prefix",
-			"namespaces":                []string{"namespace1", "namespace2"},
-			"expiry_in_hour":            int64(24),
-			"include_disks":             true,
-			"include_cluster_resources": true,
+			"schedule":                       "daily",
+			"backup_location_id":             "location-123",
+			"prefix":                         "backup-prefix",
+			"namespaces":                     []string{"namespace1", "namespace2"},
+			"expiry_in_hour":                 int64(24),
+			"include_disks":                  true,
+			"include_cluster_resources":      false,
+			"include_cluster_resources_mode": models.V1IncludeClusterResourceMode(""),
 		},
 	}
 
@@ -112,12 +113,13 @@ func TestToBackupPolicy(t *testing.T) {
 	result := toBackupPolicy(resourceData)
 
 	expected := &models.V1ClusterBackupConfig{
-		BackupLocationUID:       "location-123",
-		BackupPrefix:            "backup-prefix",
-		DurationInHours:         24,
-		IncludeAllDisks:         true,
-		IncludeClusterResources: true,
-		Namespaces:              []string{"namespace1"},
+		BackupLocationUID:          "location-123",
+		BackupPrefix:               "backup-prefix",
+		DurationInHours:            24,
+		IncludeAllDisks:            true,
+		IncludeClusterResources:    false,
+		IncludeClusterResourceMode: models.V1IncludeClusterResourceMode("Always"),
+		Namespaces:                 []string{"namespace1"},
 		Schedule: &models.V1ClusterFeatureSchedule{
 			ScheduledRunTime: "daily",
 		},
@@ -192,12 +194,13 @@ func TestToPolicies(t *testing.T) {
 
 	expected := &models.V1SpectroClusterPolicies{
 		BackupPolicy: &models.V1ClusterBackupConfig{
-			BackupLocationUID:       "location-123",
-			BackupPrefix:            "backup-prefix",
-			DurationInHours:         24,
-			IncludeAllDisks:         true,
-			IncludeClusterResources: true,
-			Namespaces:              []string{"namespace1"},
+			BackupLocationUID:          "location-123",
+			BackupPrefix:               "backup-prefix",
+			DurationInHours:            24,
+			IncludeAllDisks:            true,
+			IncludeClusterResources:    false,
+			IncludeClusterResourceMode: models.V1IncludeClusterResourceMode("Always"),
+			Namespaces:                 []string{"namespace1"},
 			Schedule: &models.V1ClusterFeatureSchedule{
 				ScheduledRunTime: "daily",
 			},