The letter came from a law firm notorious for filing thousands of ADA (Americans with Disabilities Act) lawsuits. They claimed the e-commerce site I built was incompatible with screen readers, violating Title III of the ADA. My client is facing a federal lawsuit and is demanding I indemnify them for the legal costs and the site rebuild, citing my contract’s “Compliance with Laws” clause.
Key Takeaways
- ADA is a strict liability: In 2026, web accessibility is no longer optional. Courts view websites as “public accommodations.”
- “Discrimination” Exclusion: Standard E&O policies often exclude claims related to “discrimination.” Some carriers classify ADA lawsuits as discrimination claims. You need a specific endorsement.
- Compliance vs. Design: Did you contractually guarantee WCAG 2.1 or 2.2 AA compliance? If yes, this is a breach of contract claim.
- Mitigation: Insurance often pays for the defense but rarely pays for the work to fix the website.
The “Why”: The Civil Rights Exclusion
Most Professional Liability policies have a clause excluding “Civil Rights Violations” or “Discrimination.”
The Trap: Because the ADA is a civil rights law, budget insurers will use this exclusion to deny your claim. You must check your policy for a “Third Party Discrimination” endorsement or specific language covering “ADA/Accessibility-related errors.”
The Investigation: I Quoted 3 Major Carriers
1. Beazley
- My Analysis: Beazley is a leader in “Media & Tech.” Their policy explicitly addresses ADA claims for websites. They view it as a tech error, not a hate crime. This is the coverage you want.
2. Coalition
- My Analysis: Since accessibility often overlaps with code structure, Coalition’s Tech E&O policy tends to cover this under “failure to perform software services.”
3. State Farm
- My Analysis: I asked a local agent. They were unsure. The standard policy specimen I read contained a broad discrimination exclusion that would worry me in this scenario.
[IMAGE: Graphic showing WCAG 2.2 Checklist failure points]
Comparison Table: ADA Defense Coverage
| Carrier | Covers ADA Claims? | Exclusion Risk | Cost | Best For… |
| Beazley | Yes (Explicit) | Low | | Web Developers |
| Coalition | Yes (Tech E&O) | Low | | Full Stack Devs |
| State Farm | Unclear | High | | General Business |
Step-by-Step Action Plan
- Run an Audit: Immediately use a tool like Axe or Wave to verify the claims.
- Review Contract: Did you promise “ADA Compliance”? Or did you just promise a “Website”?
- Notify Carrier: specifically asking about the “Discrimination Exclusion” applicability.
- Fix it Fast: Often, showing the court that you are actively remediating the site can stay the lawsuit or reduce damages.
FAQ
Is a small business website really required to be accessible?
In 2026? Yes. The Department of Justice has made it clear that web accessibility applies to almost all commercial entities.
Does insurance pay the settlement?
Likely yes, provided it’s not excluded. They prefer to settle these quickly as legal fees rack up fast.
Can I countersue the plugin developer?
If a specific plugin caused the failure, maybe. But your client sues you; you sue the plugin dev. Insurance handles the chain.