Title III of the Americans with Disabilities Act mandates that organizations make their physical and digital spaces more accessible to customers with disabilities. This includes making web content and technology user-friendly according to the Web Content Accessibility Guidelines (WCAG). Shockingly, nearly 98% of US websites fail to meet these standards.

Moreover, the 2023 Year End Report by UseableNet revealed a significant increase in ADA lawsuits against websites filed federally and at the state level. More than 4,500 cases were recorded, marking an uptick of approximately 500 more lawsuits than the previous year, 2022.

If your business clients operate commercial websites, they’ll likely need ADA Insurance to cover the legal risks of ADA policy violations.

What You Need to Know About ADA Compliance

Title III prohibits discrimination based on disability in “places of public accommodation,” a rule many associate with physical access issues like wheelchair ramps and handicap parking spaces. However, an increasing number of lawsuits are focusing on website accessibility, highlighting an exposure many businesses have not anticipated or addressed.

ADA Title III regulations stipulate that websites must be accessible for people who are hard of hearing, visually impaired, or have any other type of disability. Companies can incorporate several web features to comply with WCAG. A few examples include:

• Adding text captions to images that are compatible with screen readers for visually impaired users
• Giving visually impaired users options to adjust font size and color on the website
• Providing audio descriptions and audio captions for users who are hearing impaired

Businesses specializing in website design and development could face future issues due to any ADA policy compliance oversights made on behalf of their clients. Therefore, these companies must secure Technology E&O Insurance, which offers protection against potential ADA compliance challenges, given that there’s no absolute safeguard against such issues.

ADA Title III Poses Significant Liability Risks

Record numbers of ADA lawsuits against websites highlight the level of exposure that many businesses face. One prominent example is the landmark case against Winn-Dixie stores in 2017.

The Southern District of Florida sided with the plaintiff, a visually impaired man with cerebral palsy who sued Winn-Dixie because its website was incompatible with his adaptive screen reader. The judge ruled that despite investing $7 million in early 2017 to improve its website, Winn-Dixie had not made a concerted effort to make it more accessible to the disabled.

Other cases further illustrate similar liability risks. In January 2019, the 9th Circuit Court overturned the dismissal of a case against the Domino’s Pizza chain from a district court. The district court had initially dismissed a website accessibility lawsuit against Domino’s.

However, the 9th Circuit Court disagreed with this ruling, asserting that ADA website accessibility did indeed apply to Domino’s. This case only adds to the growing body of legal decisions that favor plaintiffs regarding website accessibility litigation.

What Kind of Insurance Covers ADA Accessibility?

Because recent lawsuits focus on websites and cyber-driven accessibility issues, some assume that Cyber Liability coverage would apply here. However, Cyber Liability policies do not cover this particular exposure. Cyber policies cover the first- and third-party exposures associated with a cyber incident, such as a cyber breach. These policies do not include language regarding ADA accessibility.

ADA Insurance falls under Employment Practices Liability Insurance (EPLI). Although EPLI can be a stand-alone product, it is often part of a Management Liability package. ProWriters offers EPLI as part of our comprehensive Directors and Officers (D&O) Insurance packages. These policies protect company officers in the event of a D&O-related claim.

It’s not uncommon for ADA violations to result in tens of thousands to millions of dollars in compensatory damages—a financial burden beyond the reach of many businesses. Consequently, securing ADA Insurance has become a critical safety net against litigation costs.

Protect Your Clients From ADA-Related Lawsuits with ProWriters

Are you a Cyber Insurance broker looking to secure ADA Website Compliance Insurance for your business clients? Look no further than ProWriters. With our finger on the pulse of the latest regulatory liability, we bring unmatched expertise and advice, helping you find the right ADA Website Compliance Insurance solutions.

At ProWriters, exceptional customer support is at the heart of what we do, making the process smooth and straightforward. Don’t miss out on the opportunity to provide your clients with top-tier protection. Schedule an appointment with a ProWriters representative today and take the first step toward comprehensive ADA Insurance coverage for your clients.