BIPA Ruling Marks Critical Win For Silent Cyber Coverage - Insurance mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
The deluge of lawsuits brought under the Illinois Biometric Information Privacy Act (BIPA), 740 ILCS 14 et seq. over the past several years has presented a challenge to companies.
In a highly anticipated case before Illinois' highest court, the justices recently found an insurance carrier’s business liability policy requires it to defend a lawsuit alleging.
Thursday, May 27, 2021
In a highly anticipated case before Illinois highest court, the justices recently found an insurance carrier’s business liability policy requires it to defend a lawsuit alleging violations of the Illinois Biometric Information Privacy Act (“BIPA”).
West Bend Mut. Ins. Co. v. Krishna Schaumburg Tan, Inc., 2021 IL 125978 (Ill., May 20, 2021). While the court’s opinion addresses specific policy language, the decision reinforces key principles and concepts supporting insurance coverage (indemnity and defense) under Illinois law.
Background
In the underlying lawsuit, a tanning salon patron sued alleging the salon violated BIPA by scanning her and other customers’ fingerprints without consent and by disclosing their biometric identifiers and information to a third-party vendor. Upon receipt of the lawsuit, the tanning salon tendered the claim to its insurer requesting a defense. The insurance company issued a reservation of rights letter