Will Insurance Cover a Biometric Data Lawsuit?

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Modern technology has impacted every aspect of daily living. Biometric data is now used for identification, verification and log-in purposes. Collecting such confidential information can create problems with biometric data claims for companies that use the information of their customers and employees.

What is Biometric Data?

Any measurement or calculation related to unique human characteristics such as fingerprints, retina scans and even hair follicles constitutes biometric data. Such information is commonly used in computer science to identify individuals and allow access to systems and servers. It can also be used to grant access to buildings or rooms. Companies collecting such information from their employees has become controversial and can lead to lawsuits. Companies then file biometric data claims with their insurance companies to cover damages awarded.

Insurance May Not Cover Them

In some states, an employee may sue their company for using this data without their consent. The damages can be expensive so companies turn to their insurance companies with biometric data claims. However many insurance companies are beginning to exclude biometric data lawsuits from their policies, leaving the company to pay damages out of pocket. This is something to consider before going ahead and collecting biometric data.

Technology has had a big impact on the business world. Companies much adapt. Before collecting and using biometric data from your employees, get written consent to protect your company against lawsuits.