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Duty to Defend BIPA Claims Clarified in Tanning Salon Case


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 ....

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