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Articles

Insurance Implications of NYC’s Biometric Information Law

Risk Management Magazine (RMM)

  • Published On: September 27, 2021

New York City’s Biometric Identifier Information Law (BII Law), which went into effect on July 9, 2021, bans the sale of biometric data and imposes notice requirements on covered businesses that use biometric identifying technology in their establishments. While comparisons have been made to the Illinois Biometric Information Privacy Act (BIPA), New York City’s new BII Law—which provides a cure period for certain violations and permitting collection of biometric data without written consent—is far less stringent and is not expected to produce the maelstrom of litigation precipitated by BIPA. That said, policyholders still should be aware of the BII Law’s requirements and consider potential insurance coverage implications.

Background

The new BII Law imposes two main requirements. First, covered businesses may not sell, lease, share for value, or otherwise profit from the transmission of biometric identifier information. Second, covered businesses that collect, retain, convert, store or share biometric identifier information must post conspicuous signage at all customer entrances disclosing that such information is being collected.

Read the full Risk Management Magazine article here.

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