Insights
Publications

Illinois Courts Largely Favor Coverage for BIPA Cases Under CGL Policies

April 29, 2022 Blog
Policyholder Perspective

Since Illinois passed its Biometric Information Privacy Act (BIPA) in 2008, there has been a proliferation of class action lawsuits filed pursuant to the statute. BIPA generally bars private entities from collecting, capturing, purchasing, receiving, or otherwise obtaining a person’s biometric information without obtaining that person’s advance, informed consent (see 740 ILCS 14/15(b)), and grants a private right of action to individuals who are “aggrieved” by a violation of the statute, entitling them to recover liquidated or actual damages as well as attorneys’ fees and costs (see 740 ILCS 14/20).

The Illinois courts are sorting out the question of the availability of insurance coverage for such BIPA suits under Commercial General Liability (CGL) policies. Of course, the standard CGL definition of covered “personal and advertising injury” includes “oral or written publication of material that violates a person’s right of privacy.” In May of 2021, an Illinois Supreme Court case, West Bend Mutual Insurance Co. v. Krishna Schaumburg Tan, Inc., 183 N.E.3d 47 (2021), addressed the threshold question of whether BIPA claims fall within this basic definition. The court agreed that the gravamen of such claims is invasion of privacy, and that the purpose of the statute is to prevent such invasions. Krishna also rejected the insurer’s argument that the policyholder’s alleged conduct did not constitute an “oral or written publication” because biometric data was merely collected and given to a single third party (a service provider for the policyholder). The court ruled that even providing the information to one other party is a “publication”; the dissemination need not be widespread.

Read the full Policyholder Perspective blog post here.

Firm Highlights

Publication

Reporting Dispute Claims Within Closely Held Wineries

Many wineries operate as closely held companies, meaning they’re owned by an individual or small group of shareholders, who are often members of the same family. Disputes regarding ownership interests can arise, particularly when directors...

Read More
Publication

Regulatory Changes Underway To Address Dwindling California Property Insurance Market

We keep hearing about how difficult it is for our clients to get property insurance these days, both for homes and businesses in Northern California’s wildfire-prone areas. Which, of course, is most of Northern...

Read More
News

Who’s Who Legal 2023 Recognizes Farella Lawyers

Six Farella Braun + Martel lawyers have been recommended by Who’s Who Legal 2023 as leading practitioners in their fields. Who’s Who Legal – Environment 2023 James Colopy Robert Hines David Lazerwitz Chris Locke...

Read More
Publication

Disputes Between Shareholders May Not Be Governed by Fiduciary Duties but Could Be Covered by Insurance

(As published in Private Company Director ) Disputes regarding ownership interests often arise in the context of closely held corporations, particularly when directors, officers, or majority shareholders sell or acquire ownership interests in the...

Read More
News

Farella Braun + Martel Attorneys Named to 2023 Northern California Super Lawyers and Rising Stars

Thirty-eight Farella Braun + Martel lawyers were named to the Super Lawyers and Rising Stars lists of top attorneys in Northern California for 2023. 2023 Farella Northern California Super Lawyers: Carly Alameda – Business...

Read More
Publication

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? (Part One)

By Jalen M. Brown, Kristin Davis, Shanti Eagle, PeterJ. Georgiton, and J. Mark Hart When an insurer accepts an insured’s tender and agrees to provide a defense, it is often an afterthought as to...

Read More
News

Farella Lawyers Recognized in The Best Lawyers in America® 2024 Edition

Read More
Publication

BIPA Liability: Existing CGL Coverage May Provide a Lifeline for Policyholders

Developments in the law have increased the potential liability that companies could face under the Illinois Biometric Information Privacy Act (BIPA), but fortunately for policyholders, Illinois case law has also solidified coverage for BIPA...

Read More
News

Farella Braun + Martel Earns 2024 Best Law Firms® Rankings

Read More
Publication

More Stringent California Claim Law Could Benefit Policyholders

To combat a perceived litigation tactic by plaintiffs counsel of using settlement demands within policy limits to set up insurers for bad faith, insurance company associations lobbied for statutory clarification to avoid uncertainty around...

Read More