Hanover Insurance Unit Sued Over Face-Scan Settlement Coverage

A Hanover Insurance Group Inc. unit was sued by the plaintiffs of an underlying class action alleging that an IT services business it insured had violated Illinois’ Biometric Information Privacy Act.

A federal appeals court ruled last year in a separate dispute between the insurer and policyholder that Citizens Insurance Co. of America had to cover Wynndalco Enterprises’ legal bills in that case and another BIPA suit. Wynndalco settled with the plaintiffs in the underlying suit.

But Citizens refused to cover the $20 million settlement, the class action plaintiffs alleged in a complaint filed Monday in the US District Court ...