I back up my whole computer using
http://www.mozy.com it's a few bucks a month and so worth the peace of mind. I also have an external hard drive that has everything that is on my computer as well. So there are always 3 copies of my regular files at all times.
For my photos, I do the above, but I also make 2 DVD copies of all my photos, one stays in a binder by my computer and one goes in my fire proof box. So I have 5 copies of my photos at all times. Photos are irreplaceable to me, so I feel like you can never have enough back up of those.
Sorry this happened to you, be sure to bring the drive to an IT person, they may be able to retrieve everything.
Rachel
PS be very careful about having your only copy of any file on a thumb drive, my understanding is that these drives CANNOT be accessed very easily (if at all) if they die on you, unlike a hard drive which can be. A thumb drive is great to use as a second copy of a file, but never as the sole copy. External hard drives are also notorious for crashing, so I wouldn't put the sole copy of something on there either. Again, it's good as a second copy, but never the only. Really you should try to have 2 copies of any file at all times.