The Illinois Biometric Information Privacy Act (BIPA) has been making legal waves in recent times, creating new avenues of potential liability for companies. Incremental developments in the law have, seemingly, amplified the risks involved in the management and protection of biometric data. However, it appears that standard Commercial General Liability (CGL) insurance policies may offer policyholders a lifeline.
BIPA has been at the forefront of considerably expanding the range of possible liability under its statutes. This development stems from the surge of BIPA claims making their way through various court levels. However, in what may be seen as a silver lining for entities potentially facing such claims, Illinois case law seems to have cemented coverage for BIPA claims under existing CGL policies.
More information on how BIPA liability and CGL coverage interplay can be accessed here.
Bearing this in mind, it is crucial for legal professionals to stay well versed with the rapid developments in privacy laws like BIPA. Understanding the nuances of these developments, especially in relation to aspects of existing CGL coverage deemed as applicable to BIPA claims, is of paramount importance for corporations and law firms alike.
Ensuring the adequacy of your company’s CGL policy could save you from encountering financial setbacks in the event of a BIPA related claim. Therefore, dedicated attempts should be made towards increasing legal awareness and actively seeking professional legal advice regarding the potential “safety nets” built into CGL policies and the potential to utilize them against incurring significant liability.