Answer a) (That I give to everyone) NEVER rely on a host to do your backups. It's your livelyhood, so keep something so critical in your own hands.
Answer b) Very reliable, but like any backup solution, regularly check it's working. There are RAID mirrors on the servers to cope with harddisk failures, and regular backups to cope with issues such as files getting deleted by mistake (which a RAID dutifuly duplicates). Whenever I have asked for an older version of a file I have never once been let down. BUT there was a server that wasn't installed with RAID by mistake last year, and when a hard disk failed they needed to go back serveral hours to the regular backups. Nothing much was lost and it's still an excellent response, but slightly less than we've come to expect from HostNexus. So, just do periodic checks that you can get an old file back - and that's advice for any host.
Answer c) Don't forget your own backups (and to encourage client) to do their own backups. Saves you all time.