Cincinnati Insurer Sues Plastics Company Over Biometric Privacy Lawsuit

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Cincinnati Insurance Co. has sued Verdeco Plastics Inc. and a former employee, seeking to avoid paying for a proposed class action lawsuit alleging the company violated Illinois' Biometric Information Privacy Act by requiring employees to scan their fingerprints for timekeeping without proper consent. The insurer argues its commercial general liability policy contains exclusions that bar coverage for claims involving access to or disclosure of personal information, including biometric data.

Why it matters

This case highlights the growing legal risks and insurance coverage disputes around the collection and use of biometric data, as Illinois' biometric privacy law is the first of its kind in the U.S. and has led to a wave of lawsuits against companies that fail to properly obtain consent before using fingerprints, facial scans and other biometric identifiers.

The details

In the underlying proposed class action, former Verdeco employee Vanessa Contreras alleges the plastics company violated Illinois' Biometric Information Privacy Act by requiring workers to scan their fingerprints for timekeeping purposes without obtaining the proper written consent and disclosures. The plaintiffs are seeking $5,000 per willful violation and $1,000 per negligent violation under the state's biometric privacy law.

• The proposed class action lawsuit against Verdeco Plastics was filed in 2025.

What they’re saying

What’s next

The judge in the case will decide whether Cincinnati Insurance Co.'s policy exclusions bar coverage for the biometric privacy lawsuit against Verdeco Plastics.