Iffy Insurance Coverage For TCPA Claims

Violations of the Telephone Consumer Protection Act are made to order for class actions, and there has been an explosion of them in the past several years, notes this post from the Bryan Cave firm. These cases are good class action fodder because typically the alleged offenses are “blasts” of unwelcome marketing in the form of SMS texts, or in some cases faxes, and with recovery of $500 per violation – $1500 for knowing or willful violations – the potential damages can add up quickly. Any company that is even remotely likely to become a TCPA target is advised to look carefully at the statute, tighten up its compliance profile, and to consider whether its insurance would cover all or part of the cost of a lawsuit. With regard to that question, the authors note, several jurisdictions have said that a CGL policy won’t do it. They survey other types of policies that should be considered, and how they have fared.