McDermott said Taylor avoided ligament damage after being injured on the Bills' first offensive play of Sunday's 23-3 loss to the New England Patriots. Taylor played through the injury until he was carted to the locker room while the Patriots offense was on the field in the fourth quarter.
McDermott did not know Monday if Taylor would be able to play this Sunday against the Indianapolis Colts, but said, "when healthy, Tyrod is our quarterback."
Taylor was replaced by rookie Nathan Peterman with about 13 minutes remaining. Peterman completed six of 15 passes for 50 yards.
Before leaving the game, Taylor completed nine of 18 passes for 65 yards with one interception.
While Taylor's status for Sunday's game is uncertain, McDermott said Monday that it looks good for wide receiver Kelvin Benjamin to practice after missing the past two weeks with a torn meniscus in his knee.
When asked if Benjamin is expected to play Sunday, McDermott said, "practice leads to playing."