incrediBILL - 1:00 am on Jan 16, 2013 (gmt 0)

but what does "backups" mean?

It means a copy of the site. Most people would assume it means a copy of the actual deployed working site so you can quickly restore your site to it's functioning state, not a development site or anything else.

When I do a backup it's everything on this path, subdirectories and all:
/var/www/vhosts/example.com/