Regarding quality inspection of technologically important nanocomposite hard coatings based on Ti, B, Si, C, and N and bioceramics such as hydroxyapatite that are used in small-scale high-precision devices and bio-implants, it is essential to study the failure mechanisms associated with nanoindentation, such as fracture, delamination, and chipping. The stress imposed by the indenter can affect the fracture morphology and the interfacial fracture energy, depending on indenter shape, substrate type, crystallographic properties, pre-existing flaws, internal micro-cracks, and pre-strain. Reported here are finite-element-based fracture studies that provide insights into the different cracking mechanisms related to the aforementioned failure process, showing that the fracture morphology is affected by the interaction of different cracking events. The interfacial fracture energy, toughness, and residual stress are calculated using existing models with minor adjustments, and it is found that increasing the indenter sharpness improves the shear stress distribution, making the coating more prone to separation. Depending on the prevailing type of stress, the stress distribution beneath the depression results in either crack formation or a dislocation pile-up leading to strain hardening. Different forms of resistances resulting from the indentation process are found to affect the tip–sample conduction, and because of its stronger induced plasticity than that of a Berkovich indenter tip, a sharper cube-corner tip produces more resistance.