Web Shop Project Fail: A Real exali Damage Event
Opening a web shop is an obvious choice for self-employed individuals who want to sell their products successfully. Many prefer to leave the job of creating an online shop in the hands of experts and hire freelancers or agencies. However, if the project isn’t a success, not only both parties are disappointed but the financial responsibility for the failed project also has to be determined. This is what happened to a marketing agency insured by exali in this real damage event.
Web Shop Project With Obstacles
You would think that after 20+ years in business, there is not much that can throw a company off track. But mistaken expectations and a lack of communication can turn even well-planned projects with experienced people into a disaster.
A marketing agency insured through exali initially accepted a commission without hesitation from a project agent who was looking for a web designer for their clients. The commission consisted of the implementation of a web shop project worth 8.000 euros - the central component was completely copying the current homepage into a new system. The marketing agency guaranteed the customer that this could be done easily with the Wordpress content management system.
Specifications Not Met - Customer Demands Compensation
As it turned out, migrating the old website to the new system was not possible without problems and the customer’s request couldn’t be implemented one hundred percent. As if that wasn’t enough, the marketing agency also failed to meet the agreed deadlines for the project. After the planned nine weeks had passed without success and the agency still couldn’t promise to deliver the desired functions in a short time, the already unsatisfied customer pulled the cord and claimed compensation for the failed e-commerce project. After all, the customer’s own employees had worked many hours in vain on the relaunch and it had not been possible for them to use the web shop as planned and generate sales. Overall, the customer estimated the financial damage from unsuccessful expenditures and lower income at over 6.000 euros.
Over 6.000 Euros In Damages!
The agency had not succeeded in migrating the web shop as specified nor in making it more sustainable as desired by their customer, so they faced an expensive claim for compensation. But who should pay for it? To clarify the matter, the marketing agency turned to the insurance experts at exali with their case. They checked the facts carefully and then forwarded the case to the insurer’s claims department. It turned out that the compensation demanded was essentially justified, so the Professional Indemnity Insurance provider ultimately paid 6.000 euros in damages.
Professional Indemnity Insurance for Digital Professions through exali also adapts perfectly to your business in other situations. How? We shed some light on this in the article How exali's Professional Indemnity Adapts to Your Business.
Covered In Case Of Claims For Compensation
If freelancers, self-employed and companies make professional mistakes, they can face high claims for compensation. The agency in the present case also joined the ranks of companies that have been confronted with expensive claims for compensation due to poor performance. Professional Indemnity Insurance for Digital Professions from exali steps in for precisely these cases: Even the basic coverage combines Financial Loss Insurance with General Liability Insurance in order to comprehensively protect policyholders against professional risks right from the start. If you cause financial or material damage to third parties, for example your customers, due to a professional error, Professional Indemnity Insurance is at your side - even in the event of poor performance. The insurer examines the claims made against you and (if the claims are justified) covers the costs. The marketing agency also benefited from this in this case.
Mistaken Expectations, Poor Communication - Only Professional Indemnity Insurance Can Help
In addition to the importance of suitable insurance, this damage event also confirms the popular saying: “You are always wiser afterwards”. When the customer decided to say goodbye to the old shop system, the marketing agency would have been well advised to communicate closely with them before implementing the project. Experience has shown that customer expectations sometimes collide with technical possibilities in such projects. When the customer assumes that the old functionalities are going to be available to them one-to-one in the new system, disappointment is almost inevitable. So it’s important for service providers to clearly communicate to customers in advance what is technically feasible and what functionalities they might lose in the transition.
But projects can still fail. The right insurance helps in these cases. With Professional Indemnity Insurance for Digital Professions from exali, you are covered if you cause financial damage to third parties through professional negligence on your part, for example through infringements of rights or implementation or execution errors.
Any questions? Our customer advisors will be happy to advise you from Monday to Friday from 9:00 a.m. to 6:00 p.m. (CET) on +49 (0) 821 80 99 46-0. Or you can contact us using our contact form.
Vivien Gebhardt is an online editor at exali. She creates content on topics that are of interest to self-employed people, freelancers and entrepreneurs. Her specialties are risks in e-commerce, legal topics and claims that have happened to exali insured freelancers.
She has been a freelance copywriter herself since 2021 and therefore knows from experience what the target group is concerned about.