In addition, Web Design creates
In addition, Web Design creates a customized order package for Widget World to take orders online. The ordering software assesses tax on orders. Unfortunately, Widget World later learns it is not authorized to collect the tax and must refund the money to customers. The cost to Widget World is $250,000, which they decide to recover by suing Web Design. If that weren?t enough, a Widget World competitor sues Widget World, claiming its website looks too similar to the competitor?s Web site. Widget World then sues Web Design for trademark infringement. This used to be covered under Web Design?s general liability policy but now excludes it. Cyber insurance typically provides this coverage.
2. Fictional retailer decides to offer products to customers online with payment by credit card as an option.
healthcare costs