With reseller hosting, there is always a difficult question of liability that has to be answered. Clearly, there are no easy answers for it. This becomes even more complicated if the reselling infrastructure is distributed across geographies and different countries bounded by different sets of laws since there are no universal laws for the Internet and hence deciding who should be liable for what folly can be a challenge in this highly interconnected complex world. Clearly, there is a need for laws that all the providers in the chain could follow but in the absence of such a law, there is no easy solution for such problems. A customer should sign a clear contract with the reseller and the contract should include all the information that customer will need in case of a failure. It should also include all situations that a customer cares about and clear division of responsibilities. Although failures cannot be avoided, the customer should have a clear contingency plan in case a failure happens.
