I think you have it flipped. Any clause in a contract is a negotiation. Warranties and insurance coverage are part of it.
Any smart CIO would have said - ill take what you sell but if you fail i can come back and haunt you and you are going to give me endorsement for your product insurance and i'll require upping your coverage + notifications of you being up to date with your insurance policy that has 50XXX M in coverage, minimum.
If the software is sitting on top of your business core IT, you must protect the business in its entirety by demanding a proportional shield, and using IT vendor's own IT insurance shield as if it was your own. And demanding more coverage, if the shield is too small . Then once those elements are in place, you are protected. Its as simple as that.
Any smart CIO would have said - ill take what you sell but if you fail i can come back and haunt you and you are going to give me endorsement for your product insurance and i'll require upping your coverage + notifications of you being up to date with your insurance policy that has 50XXX M in coverage, minimum.
If the software is sitting on top of your business core IT, you must protect the business in its entirety by demanding a proportional shield, and using IT vendor's own IT insurance shield as if it was your own. And demanding more coverage, if the shield is too small . Then once those elements are in place, you are protected. Its as simple as that.