It's pretty disgusting that you knew that this was a gap in policy, had been considering it for some time, and ultimately decided to run with it anyway and even

It's pretty disgusting that you knew that this was a gap in policy, had been considering it for some time, and ultimately decided to run with it anyway and even took measures to obfuscate the truth. What's the point in pretending to be honorable by offering a service one can pay for to prevent your misdeeds? Any reasonable person here can see straight through you and your business. If you want to be ethical going forward, rewrite your user agreement and offer this insurance baked into your product. If it turns out you cannot profit from running your business in an ethical manner, then perhaps you should consider a different line of work. Or, at the very least, don't offer your fake sympathy when a user uses your product and falls victim to your personal shortcomings.