A ToS (and everything else really) should always mention that the user is responsible for backups and they should take them even in case of managed servers, in situations like user sharing credentials with a disgruntled admin or friend, there is no way for the host to know who cancelled the service, there might be a problem with the payment getting through, also, for example. Data loss can occur even for the best, then it is a matter of how recent the backup was, there are some people doing CDP of sorts, but even so, the data can become corrupt by other means, such as hacking and you may never know without expensive audits how far back it went, there can be a lot of scenarios when the user should have own backups at least from time to time.
I am only representing myself :)
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