Plastics Company Sued by Insurer Over Biometric Privacy Case

Cincinnati Insurance Co. sued Verdeco Plastics Inc. and a former employee to avoid paying for biometric privacy litigation, arguing policy exclusions bar coverage for alleged fingerprint-scanning violations.

In the underlying proposed class action, Vanessa Contreras said Verdeco violated Illinois’ Biometric Information Privacy Act by requiring employees to scan fingerprints for timekeeping without proper consent. The plaintiffs are seeking $5,000 per willful violation and $1,000 per negligent violation under the state’s first-of-its-kind law.

But Cincinnati’s commercial general liability policy contains exclusions that eliminate coverage for claims involving access to or disclosure of personal information, including biometric data, the insurer said in ...