We have a SQL Server (2008) on a Windows Server (2008) VM that has iSCSI targets on a SAN. When the connection is lost between the VM and its disks the OS is able to reconnect to the targets but SQL does not "find" them again; the service needs to be restarted. Is there something that I'm missing that would make the OS report to the service that the targets have been reacquired and, thus, no longer need to be restarted?
Best option is to fix iscsi so you don't lose your LUN's. Your at risk of corrupting your databases.
My guess is SQL Server is crashing because it's losing it's system databases. move the system databases to a local disk & it will stop sql server crashing. You can leave your user databases on iSCSI at your own risk, but sql server should survive losing the user databases.