They have a relay (electronically operated switch) that in the case of a failure physically cuts power to the outputs. According to the RBI website the VE line of thermostat now have this too, but I'm not sure exactly how their software deals with it.
At the end of the day the Herpstat 2 and the VE-300 x2 cost the same, but the Herpstat 2 is a much better/versatile unit.