BIPA Ruling Marks Critical Win For Silent Cyber Coverage

The Supreme Court of Illinois recently handed down a monumental decision in  West Bend Mutual Insurance Co. v. Krishna Schaumburg Tan Inc. confirming that commercial general liability, or CGL, policies cover claims brought against policyholders for alleged violations of Illinois' Biometric Information Privacy Act, or BIPA.

The ruling has widespread implications for other policyholders with similar coverage for personal and advertising liability and represents a critical victory under so-called silent cyber coverage, affirming that insuring policies do not have to include magic words to cover BIPA claims.

This article analyzes the effects of the court's decision on the scope of coverage provided by commercial general liability policies and explores future, unresolved issues in the ongoing battles over insurance coverage for BIPA claims.