This design doesn't quite have the solidity of the polycarbonate and frame design used in the Nokia Lumia 920 and 720, but it is very durable. The materials and production costs are also cheaper, which together with lower cost components (e.g. camera and screen), helps explain how Nokia was able to reduce the price point of the Lumia 520.
As is typical for phones with replaceable covers, the back cover isn't really integral to structure of the phone, though it does provide additional protection. However, it is important for protecting the device from shocks when it is dropped. Typically the back cover will break away, in traditional Nokia style, but in doing so will act as a shock absorber.
Via: Windows Phone Daily