Biometrics: No Breach Needed for Liability or Insurance Coverage

Over the past year a number of courts have addressed the question of insurance coverage for alleged violations of biometric statutes.  The insurance coverage decisions are mostly, though not universally, welcome news for businesses that have faced increasing numbers of lawsuits claiming improper collection, use or disclosures regarding biometric information.  No data breach need have taken place for such claims to be made.  As biometric data continues to be used at increasing rates, such claims are expected to increase.  Understanding some of the key provisions in insurance policies can be valuable.