Is it not the case that one can back up their BC wallet into a locally encrypted file, in the event that their online wallet is compromised? I'm a user of coinb

Is it not the case that one can back up their BC wallet into a locally encrypted file, in the event that their online wallet is compromised? I'm a user of coinbase, and have a local backup. I was advised to do just this: take a backup of my wallet, just in case something bad happened to the server. That way, I have legal recourse if push comes to shove.