Vouch is proud to announce an important new addition to our suite of protections for startups: Digital Accessibility Coverage. 

This industry-first coverage is now a standard feature in Vouch’s General Liability policy*. It is designed to safeguard startups against the growing risk of legal action arising from ADA non-compliance with their websites and provides peace of mind in an area where litigation is rapidly growing.

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Why Digital Accessibility Coverage Matters

Over the past five years, a significant rise in digital accessibility-related lawsuits has left startups particularly vulnerable. With average costs around $30,000, a Digital Accessibility lawsuit could present a significant financial strain. 

These legal actions often center around failures to meet Web Content Accessibility Guidelines (WCAG), which serve as a benchmark for web accessibility. Common complaints include:

• Websites and mobile applications that lack appropriate text alternatives for images.
• The absence of video captions for the hearing impaired.
• A lack of keyboard navigation options for individuals unable to use a mouse.

This rise in litigation highlights a significant gap in standard General Liability policies, which traditionally doesn’t cover Digital Accessibility lawsuits. Recognizing this gap and the potential financial and operational impacts on startups, Vouch has taken a bold step by automatically including the coverage, starting mid-May 2024.

Who is Impacted?

Following a few high-profile cases against companies like Nike, Amazon, and Netflix, there's now been a marked escalation in litigation targeting smaller entities.

Startups, especially those with annual revenues under $25 million, now face the brunt of the litigation. Among Vouch’s clientele of over 4,500 startups, several have already encountered litigation for not meeting digital accessibility standards.

Of startups, consumer startups are especially impacted with 84% of the claims affecting B2C companies. (link)

Challenges in Compliance

The uptick in litigation is largely due to the challenges companies face in complying with Digital Accessibility laws. While the goals of the Americans with Disabilities Act (ADA) are clear—ensuring that digital platforms are accessible to all users, including those with disabilities—the specifics of achieving this compliance often aren't as straightforward.

The main hurdle lies in the ambiguity of the regulations. The ADA, for example, does not explicitly detail what constitutes sufficient web accessibility, leaving companies to interpret the requirements. This lack of clear guidance can lead startups down a confusing path of trying to adhere to standards that seem to be moving targets. This has resulted in a great influx of litigation while businesses struggle to comply. 

Recent Litigation Trends in Digital Accessibility

Here’s a closer look at the recent developments and what they mean for startups:

• Surge in Lawsuits: From 2018 to 2023, the number of lawsuits related to digital accessibility has soared by 74%. This uptick is a clear indicator of the growing legal scrutiny, with plaintiffs firms targeting many companies for similar lawsuits
• Targeted Companies: Startups and small businesses, particularly those with annual revenues under $25 million, have been the primary targets of these lawsuits. With the average lawsuit costing approximately $30,000, the financial impact on these companies can be substantial.
• Predicted Increase: Analysts predict that the trend will continue, with over 4,200 digital accessibility lawsuits expected to be filed this year alone. This projection suggests an escalating risk for startups.
• Vouch’s Client Insights: Among our own client base of 4,500 startups, a number have already faced litigation for failing to meet digital accessibility standards. 
• B2C Companies at Higher Risk: Consumer-facing businesses, especially those offering tangible benefits through their websites (such as offer codes), are at the highest risk, making up 84% of claims. The nature of B2C transactions, which rely heavily on online interactions, increases the exposure to potential lawsuits.
• Open Liability: Importantly, the party filing a lawsuit need not be an existing customer. In the current legal environment, anyone who encounters barriers to accessibility on a website can initiate legal action. This broad potential for litigation emphasizes the risk.

Managing Risk: Strategies to Prevent ADA Lawsuits

To mitigate the risk of ADA lawsuits related to digital accessibility, Vouch offers the following recommendations to ensure your website meets accessibility standards:

• Ensure strong color contrast between content and backgrounds, and use dyslexia-friendly fonts for better readability.
• Provide alt text for all visuals, synchronized captions for videos, and text equivalents for audio content.
• Ensure buttons have accessible names and ARIA labels, and that all website elements are navigable via keyboard.
• Make online forms easy to use with clear labels and keyboard access, and include skip navigation links for fast content access.
• Avoid flashing imagery and enable content zooming.
• Clearly display contact info for accessibility support.
• Use website auditing tools like Google Lighthouse, which include scans for accessibility. 
• In your website’s terms of use, make note of any accessibility features you’ve implemented, including those in progress.

By implementing these strategies, startups can significantly reduce the likelihood of facing digital accessibility-related litigation and demonstrate a commitment to inclusivity.

Conclusion

Given the increasing litigation and the disproportionate impact on startups, the introduction of Digital Accessibility Coverage is a testament to Vouch's forward-thinking approach. It not only highlights our commitment to innovation but also our dedication to developing insurance products that address the specific challenges startups face in an evolving legal landscape. This coverage, unavailable anywhere else, underscores Vouch's role in protecting startups as they grow. 

*Excluding NY