Yes they should. Because, if they claim you did something wrong, then you can show them your terms of service or privacy policy and they can't do anything about it.
Yeah, I have mine out in the front in a link on one of the top tables. It sure doesn't hurt to put it there. Even if you're just a personal site like mine is. If someone else is using your site and something bad happens it helps you be covered. You really never know.