The service manual shows the switch as 'NO' or Normally Open. 'Fail' in this case would mean it doesn't work which would mean, it won't show 'closed' when it's supposed to. IF that is the definition of 'fail', the answer to your question might be yes.
The might be part being, if the bike is in gear, it won't crank unless the clutch switch is activated.
All things normal except for the kickstand switch, the bike will crank regardless of that switch's condition or position if the bike is in neutral.