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Chris6791 said..
What sort of dollars are we actually talking here? Knowing how pricey it is might motivate me to refresh my backups.
Don't think of it that way. Sometimes they can't recover any data at all, so do your backups. Even windows has the ability to decent backups without buying extra software.
External hard drives are cheap, so they can be used as backups, but I wouldn't be using them for critical data if it is the only copy I have.
I don't know how common it is, but a few years ago I removed a hard disk from an external enclosure to use as an internal drive. When I used it, the PC found heaps and heaps of errors on the drive. On the external controller, it effectively hid those, but the PC saw them all. This leads me to believe that external hard drives can use second-rate drives where the error rate is too high to sell it as a first-quality drive.