If you are using one of those fancy cloud hosting providers like DigitalOcean, Linode or AWS as well make sure that you have backups of all your files and all your client files.
Quite a worrying tale. I would have assumed prior to this that droplets connect into some SAN equipment with fault tolerance, but I guess that does not align with the price that they want to go to market at. Yes it was $5 per month, but it could just as easily be $100's per month.