Are Terms of Service and Privacy Policies necessary for your website or app? Yes. Here is Reason #5:
TO LIMIT YOUR LIABILITY.
Your Terms of Service (TOS) policy & your posted Privacy Policy should enable you to limit your liability.
If you are sued by an end user, you want to limit your maximum exposure. End users could try to sue you for large amounts, even if frivolous, under the theory that even if they’re unlikely to win, the potential benefit is worth the cost. You want to put an absolute cap on the most anyone can try to sue you for, to discourage such frivolous suits.
