The Illinois Supreme Court has upheld a ruling that Liberty Mutual insurance subsidiaries are not required to defend or indemnify a home decor company in a biometric privacy lawsuit. The decision affirms a lower court’s finding that Ohio Security Insurance Co. and The Ohio Casualty Insurance Co. have no duty to cover Wexford Home Corp. in litigation alleging violations of Illinois’ Biometric Information Privacy Act (BIPA).
The case stems from allegations that Wexford Home Corp. improperly collected and stored employee fingerprints without obtaining proper consent, a requirement under BIPA. The company sought coverage from its insurers to defend against the resulting class action lawsuit, but both Liberty Mutual units maintained their policies excluded such claims.
The Illinois Supreme Court’s denial of Wexford Home Corp.’s appeal adds to a growing body of case law regarding insurance coverage for BIPA-related claims. While this decision aligns with some previous rulings favoring insurers, the legal landscape remains complex and evolving. Illinois courts have issued varying decisions on BIPA coverage disputes, with some finding in favor of policyholders. This latest ruling contributes to the ongoing debate but does not establish a definitive precedent for all BIPA-related insurance cases. Legal experts continue to monitor these decisions closely, as they shape the interpretation of insurance policies in the context of biometric privacy violations.
The implications of this ruling extend beyond the immediate case, potentially affecting numerous businesses operating in Illinois that collect biometric data. Companies may need to reevaluate their insurance coverage and risk management strategies, as standard commercial liability policies may not protect against BIPA-related claims.
The ruling comes amid an increasing focus on biometric privacy protection across jurisdictions. Recent legislative developments worldwide indicate growing scrutiny of how organizations collect, store, and protect biometric information.
For businesses operating in Illinois, the Supreme Court’s decision underscores the importance of strict compliance with BIPA requirements, as they may not be able to rely on standard insurance coverage in the event of violations.
Sources: Law360, Federal Register
March 27, 2025 – by Cass Kennedy
