Is it safe to be a hosting reseller?

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This Hostgator support thread was started by thomasfrank09 on 2009-06-29 17:31:18:

Hey guys,

I recently bought a reseller account at Hostgator with the intention of acting as the host for the clients that I design for. However, I was told that it’s a bad idea because I have no control over the servers, and as such I am very liable to be sued by my clients if their site goes down even though it wouldn’t be my fault.

Are any of you resellers? How do you deal with this potential problem?

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