Install Windows Service with Recovery action to Restart

You can set the recovery options using sc. The following will set the service to restart after a failure:

sc failure [servicename] reset= 0 actions= restart/60000

This can easily be called from C#:

static void SetRecoveryOptions(string serviceName)
{
    int exitCode;
    using (var process = new Process())
    {
        var startInfo = process.StartInfo;
        startInfo.FileName = "sc";
        startInfo.WindowStyle = ProcessWindowStyle.Hidden;

        // tell Windows that the service should restart if it fails
        startInfo.Arguments = string.Format("failure \"{0}\" reset= 0 actions= restart/60000", serviceName);

        process.Start();
        process.WaitForExit();

        exitCode = process.ExitCode;
    }

    if (exitCode != 0)
        throw new InvalidOperationException();
}