Face Scan Privacy Suits Covered by Insurance, Seventh Cir. Says

A Hanover Insurance Group Inc. unit must pay to defend an IT services business over two proposed class actions alleging a violation of Illinois’ Biometric Information Privacy Act (BIPA) for using people’s facial scans without consent, the Seventh Circuit said.

The insurer, Citizens Insurance Co. of America, has to cover Wynndalco Enterprises’ legal bills arising from allegations that the IT company unlawfully helped the Chicago Police Department gain access to Clearview AI’s controversial facial-recognition database, the US Court of Appeals for the Seventh Circuit said on Thursday, upholding a lower court’s decision.

The insurance policy’s “violation-of-statutes” exclusion doesn’t bar Citizens ...