Not every business can afford to go one month without income. What's the best thing for customers? Have the business go bankrupt and irremediably lose access to the service?
Fastmail gave 1 month free service to about 2/3 of our customers after a major disk failure that led to about a week of downtime for them as we recovered from backups in... 2005ish I think. Long time ago - it was a pretty major hit and the wave in income is still visible all these years later as a lean month where there's no renewals from that batch! Definitely the right thing to do though.
400 clients, but how much of their revenue? Were they all small clients? Not to mention longer tail effects of people moving away to competitors even if they werent directly affected?