Hunton Insurance Recovery Blog

It has been nearly two decades since Illinois introduced the first biometric information privacy law in the country in 2008, the Illinois Biometric Information Privacy Act (“BIPA”). Since then, litigation relating to biometric information privacy laws has mushroomed, and the insurance industry has responded with increasingly broad exclusions for claims stemming from the litigation. A recent Illinois Appellate Court decision in Ohio Security Ins. Co. and the Ohio Cas. Ins. Co. v. Wexford Home Corp., 2024 IL App (1st) 232311-U, demonstrates this ongoing evolution.   

Just two months ago, Illinois Governor J. B. Pritzker signed significant amendments to the Illinois Biometric Information Privacy Act (BIPA). While the amendments limit businesses’ exposure to BIPA-related damages, significant BIPA exposures still persist. Given these continuing exposures, businesses should consider the protections that insurance can offer. The Illinois Appellate Court’s September 2024 decision in Tony’s Finer Foods Enterprises v. Certain Underwriters at Lloyd’s, 2024 IL App (1st) 231712 offers concrete guidance for businesses thinking about doing just that.

On May 20, 2021, the Supreme Court of Illinois upheld the state appellate decision finding that that West Bend Mutual Insurance Company must defend its insured, a tanning salon, against a class-action lawsuit claiming violation of the Biometric Information Privacy Act (BIPA) under two business owners’ liability policies.