Website Hosting - What is my liability?

I am web designer and a "wanna be" hosting provider for my clients. Last week my server got hacked and the sites were down for almost a week. Needless to say I have some clients who really depend on their sites and email. I do NOT have any written contract with these clients, so if their site(s) go down what is my liablity? Tom

No contract? You're both screwed. The side with the taller attorney wins.

I was told if there is not contract there is no liability.

Like I said, how tall is your lawyer? If you aren't sure maybe you should meet with her again and measure (while you're at it inquire about contracts and basic business law and common sense).

Is anyone suing you? If not get some rest but don't expect your clients to hold true to any obligations (like paying you) either.

Since there was no contract you might have a easy get away but still you would be screwed coz those clients who got screwed will sing everywhere that they got screwed by you. The best thing is keep another shared hosting account for times like this it might cost u little bit more but it will save your reputation if you want to grow big.