I saw many new hosting companies appeared but after some years they could not maintain their business and they are off, in that case, what will happen if user data is lost? is there a law to where they have to give you time to make a back up?
Well, we have been in business for almost 2 decades, so I can only tell you what happened to some other companies. Those owners of web hosting providers who have a customer base usually sell the business and exit. Others, who cannot sell, simply disappear, but those a usually very small firms. Companies that have assets usually sell. Other than data backups is not something to me made to protect against a business failure of the web host. they are a must and protect yourself against hardware failure or loss of data.