I was shocked a few months ago to find that one of the hosting companies that I've used in the past (a big one that shall remain nameless) was hacked (at least one of their "shared" servers was hacked).  It was pretty low level, everyone's index pages were affected.  It's also alarming to note that scripts have been developed to look specifically for popular CMS sites (Joomla, Wordpress, Drupal, etc) and attempt to exploit know vulnerabilities.

Regardless of what security measures you might have implemented on your site's installation, always, always, always backup your files and your database - it's painfully easy to do and will totally save your bacon if someone decides to give you some trouble.  If you have access to your files and DB, it's about a 10 minute process.  If you don't know how to do this, you can easily install a backup extension that can do this for you in one click, or even do it for you behind the scenes and email you the results.  If you have a Joomla site, check here for some of the more popular ones.  Also, most hosting companies will help you restore a backup in the event of an intrusion.

1. (Obvious) Check the developer's porfolio for multiple websites over a span of at least 2 years.  Verify a few of them by requesting the owner's contact information and getting permission for an interview
2. Check at least three references that span at least 2 years
3. Check their tech - what languages/programs/etc do they know?  A good web developer should at least have a basic knowledge of PhP, HTML, CSS, and Javascript.  They should also be functional in Adobe Photoshop - a bonus if they know Adobe Illustrator.
4. Be willing to pay a fair price - "you get what you pay for" applies in web development just as it does everywhere else
5. Be wary of hiring college students that might lack work experience/stability
6. Don't be afraid to hire someone out of state - Telecommuting is fine if you're ok with phone calls, email, and the occasional Skype call
7. Always have a contract for your project - Lay out the details of the job, set benchmark payments, and clearly define what the finished product will look like.  Feel free to contact me if you'd like a sample contract

While TANTOmedia doesn't provide hosting, we highly reccommend the following two companies for their excellent support, low rates, and competetitive "down-time."  They both use the industry-standard C-Panel for a feature rich hosting environment.  Click the links below to learn more, or to sign up for hosting.

Bluehost

HostGator