That said, this should be used sparingly; as it embeds a behavior deep. If that behavior later no longer makes sense it can be extremely costly to change it later.
That said, this should be used sparingly; as it embeds a behavior deep. If that behavior later no longer makes sense it can be extremely costly to change it later.
Practically I think that leaking data is inevitable. A junior developer absolutely WILL vibecode a piece of code with glaring security vulnerabilities. An experienced sysadmin WILL temporarily allow public access to the S3 bucket and then forget.
So if you make sure liabilities are covered by corporate assets and are uninsurable, you will find out a world with no services soon.
I don't know what middle ground is possible to find here.
Too often liabilities exceed assets, or the liabilities are externalised.
Liability doesn't work as an incentive for many risks. For uncommon but extreme risks, it can be better to roll the dice on company failure than regularly pay low amounts for mitigation.
It is especially effective to ignore liabilities when a company has poor profitability anyways.
And then you see major companies sidestep the costs of their liabilities (plenty of examples after security failures, but also companies like Johnson&Johnson).