As it seems to be the client and not the provider that is insured, be interesting to understand how they price the risk and whether it's on all providers.
Also I wonder whether they do anything with the providers to reduce the risk, and therefore reduce claims.
Isn't that supposed to be the point of the SLA?
The recourse for breaking SLA is limited to recovering whatever you’re paying for the service. You wouldn’t recover lost revenue, remediation costs, etc.