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The Failsafe was a creature kept within the basement of Wolfram & Hart.
When the Angel Investigations team took over Wolfram & Hart, the Senior Partners, unsure if they would be able to keep Angel under their control, created a monstrous creature and stored within it in a tank in the W&H basement in the event that Angel turned against them. According to Eve, the Failsafe was "huge, alive, and specifically designed to destroy [Angel]".
As part of his revenge against Angel, Lindsey sought to "activate" the failsafe after failing to trick Spike into killing Cordelia. While Spike held off the zombie guards protecting the failsafe antechamber, Angel and Cordelia confronted Lindsey, and Cordelia successfully managed to deactivate the failsafe while Angel dealt with Lindsey.