Small companies or people who own their own servers usually don't have anywhere near the security of a large reseller company. Your customers don't need to know your hosting from a reseller account either. All you need to tell them is that your hardware is offsite, or that your datacenter is located in another state. With a small amount of research you can list a number of good reasons why it is better to have your server located at an offsite datacenter. The reason you mentioned about someone going out of business is a good one. With a reseller account, the datacenter would be happy to transfer all of the accounts to another reseller so that customers service would be uninterrupted.