Face Scan Privacy Ruling Sharpens Biometric Insurance Battle

Hanover Insurance Group Inc.’s recent loss in a face scan privacy dispute provides a roadmap for insurers on how to craft clearer policy language to avoid having to provide coverage for a policyholder’s biometric privacy violations.

The US Court of Appeals for the Seventh Circuit became the first appellate court to pinpoint insurance policy language that’s too vague to exclude coverage for a policyholder that allegedly violated an influential Illinois law on biometric privacy.

Carriers will likely use the ruling as a guide in writing their standard business liability policies to explicitly carve out data privacy ...