Face Scan Privacy Ruling Sharpens Biometric Insurance Battle – Peter Halprin Discusses Seventh Circuit Decision with Bloomberg Law

A recent Seventh Circuit ruling in a face scan privacy dispute is the first federal appellate court decision to reinforce the notion that exclusions seeking to bar coverage for violations of the Illinois’ Biometric Information Privacy Act (BIPA) must expressly exclude the risk. In an interview with Bloomberg Law, Partner Peter Halprin discusses implications of the decision and the importance of clear language in insurance policies.

The insurer argued that the catch-all portion of an exclusion clause relieved the insurer of its duty to defend against biometric privacy violations.  But the Seventh Circuit disagreed, finding the catch-all ambiguous and potentially so broad that it could imperil coverage for intellectual property, slander and libel-related suits that the policy expressly covers.

Commenting on this, Halprin explained that, “Unless you see clear exclusions, you’re going to continue to have coverage litigation on BIPA claims.”

Businesses’ general liability policies are drafted entirely by the insurers without input from their policyholders and "when you hold the pen, there’s the power that comes with that,” Halprin added.

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