The manual tells you to "save early, save often" for a reason.
The narrator (Gary Owens) was also amazing in the CD version.
I was sure to have plenty of savegames before I tried anything, of course.
One is a Sierra Spoof complete with a Sierra death dialog. That one lets you continue: https://www.youtube.com/watch?v=A6F55am-rOY
The other has to do with the fact that Guybrush can hold his breath for 10 Minutes. And only ten minutes. https://www.youtube.com/watch?v=Ah5o3aAeZso
If I remember correctly that is the only real game over in any later Lucasfilm/LucasArts adventure game.
EDIT: I just remembered the jumping puzzle in Indy3 where you died all the time when jumping on the wrong tile. Or the Knight Statue that axed either Indy or his father. Or you got shot when you punched Hitler... You could also die in Manic Mansion and Zak McKracken.
Lucasfilm games killed you quite a lot. LucasArts stopped doing that.