Illinois Auto Dealers Sued by Insurer Over Privacy Litigation

Clear Blue Specialty Insurance Co. sued five auto dealerships and a proposed class action plaintiff to avoid covering a biometric privacy lawsuit that seeks up to $5,000 per employee for alleged violations of Illinois law.

Clear Blue’s policies don’t cover the biometric privacy claims because they don’t involve bodily injury or property damage as defined in the policies, the insurer said in a complaint filed Wednesday in the US District Court for the Northern District of Illinois.

Various policy exclusions also apply, the insurer argued, including those for intentional acts, employment practices, and disclosure of personal information.

The underlying plaintiff ...