Nationwide Insurers on the Hook for Privacy Suit Defense Costs

Nationwide Mutual Insurance Co. units must pay an automotive accessory company’s legal costs in a biometric privacy suit, an Illinois federal judge ruled, just one day after he held that Hanover Insurance Group Inc. units can avoid paying under their policies.

Most policies issued by the Nationwide insurers—Harleysville Insurance Co. and Harleysville Lake States Insurance Co.—obligated them to defend Thermoflex Waukegan LLC, the US District Court for the Northern District of Illinois said in a Tuesday order.

Illinois’ landmark Biometric Insurance Privacy Act has fueled litigation against all kinds of companies in the state and sparked accompanying insurance fights over ...