Seventh Circuit Finds Access Or Disclosure Exclusion Bars Coverage For BIPA Claims

On May 17, 2024, the U.S. Court of Appeals for the Seventh Circuit affirmed an Illinois federal district court's ruling that the policy exclusion titled Access or Disclosure of Confidential or Personal Information (Access or Disclosure exclusion) excludes coverage for claims under the Illinois Biometric Information Privacy Act (BIPA). Specifically, the court found that a person's biometric identifiers, such as handprints, are considered "nonpublic information" within the meaning of the exclusion and thus held that the Access or Disclosure exclusion bars coverage and vitiates an insurer's duty to defend.

Because the Access or Disclosure exclusion is commonplace in most general liability policies, this ruling is a major win for insurers and will likely have a substantial impact on coverage disputes for BIPA claims.