Right, the risk structure presumably protects the vendor if just one customer sues, even if the amount of damages claimed is astronomical. Because vendors try to disclaim bet-the-company liability on a single contract.[1] The vendor's game is to make sure the rest of the customer base does not follow this example, because as noted in the linked article while vendors don't accept bet-the-company liability on each contract (or try not to), they do normally have some significant exposure measured in multiples of annual spend.

[1] https://www.gs2law.com/blog/current-trends-in-liability-limi...