Seventh Circuit Fuels Confusion Around Privacy Insurance Coverage

A federal appeals panel’s ruling on insurance coverage for claims under Illinois’ landmark biometric privacy law is directly at odds with a state appeals court’s interpretation of a common policy exclusion, adding to a confusing landscape for carriers and policyholders.

The US Court of Appeals for the Seventh Circuit held last week that a policy exclusion for claims alleging companies violated certain consumer and privacy statutes doesn’t preclude coverage—for the second time explicitly declining to follow a ruling by the Illinois appeals court that took the opposite position.

The Biometric Information Privacy Act, which allows plaintiffs to seek damages from ...