Data loss is a very common thing in the internet world. Things can go from simple staff mistakes, to corrupt backup files. So you must be very careful when your site is large and store your backups at different locations.
Suppose your website server went down and you asked support team to fix it. They come back with "sorry we did all we can do but your data cannot be recovered" answer. Then you cannot blame them for the loss of data because there are some rules for companies which are in this business and they might not guarantee you 100% recovery.
Data loss could be a result of hardware failure. Companies using old hardware is the reason. Some companies mention in their terms and conditions and policies that they are not responsible in case of data loss. Otherwise they charge you for backups or you should do it your self on any other external service.
When choosing backup services you must be careful as companies get out of business overnight without any notice. Never go for host that is offering both webhost and backup service unless if you want to lose both your site and backup. Always test your backups on your local system or some where else so that they are not corrupt.
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