Put your helmet on and move forward. It's bound to happen sooner or later...sad but true reality of the IM/affiliate marketing space.

Make sure you have a backup domain registered somewhere outside of godaddy if that's where your main business domain is at (I've heard of nightmares of them shutting people down for fake and spam complaints there)...better safe than sorry.
Get a backup from moniker or namecheap.com

Also ensure you can speak openly and quickly with your host about these matters...communication is key.

Also have a good TOS/AUP on your site.

- S