Insurance May Cover Call Recording Class Actions

Companies often monitor or record conversations between their employees and customers for training or quality control purposes. California law prohibits monitoring or recording unless both parties consent. Class actions have been brought against a number of companies alleging that calls were routinely recorded without customer consent. These claims may be covered by a company’s general liability (CGL)  policy.

CGL policies generally provide coverage for “personal injury” offenses, which are defined to include “oral or written publication of material that violates a person’s right of privacy.” Call recording is prohibited by California’s Invasion of Privacy Act, which was enacted to protect  “the right of privacy of the people of this state.”  Cal. Penal Code § 630. Thus, call recording claims fall within the Personal Injury coverage for “privacy” claims.

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