Explaining the Impact of 2024 BIPA Amendments for Risk and Compliance Professionals

The recent amendments to the Illinois Biometric Information Privacy Act (BIPA), signed into law on August 2, 2024, impact risk and compliance professionals by introducing changes that mitigate some liabilities but do not eliminate them. An article by Risk Management Magazine says the most significant update limits damages to a single violation per individual, reducing the risk of massive financial exposure for businesses. However, ongoing legal uncertainties, particularly around retroactivity and evolving litigation, mean risk professionals must remain vigilant regarding the new BIPA amendments.

From a compliance perspective, explicitly recognizing electronic signatures as valid consent for biometric data collection simplifies business processes. This change reflects modern technological realities, helping organizations align more easily with regulatory requirements. Despite these improvements, the risk landscape remains complex, with potential BIPA claims still presenting significant challenges.

For risk professionals managing insurance coverage, the amendments do not resolve all uncertainties. Businesses must evaluate their coverage options, as various types of policies—including Commercial General Liability (CGL)—may apply to BIPA claims. The case law surrounding these policies remains divided, especially regarding statutory exclusions, access/disclosure exclusions, and employment practices exclusions. Courts have reached conflicting interpretations on whether these exclusions bar coverage for BIPA claims, with decisions varying based on venue and jurisdiction.

Risk professionals must closely monitor ongoing litigation related to the BIPA amendments and carefully assess their insurance policies to ensure adequate coverage. While offering some relief, the amendments do not eliminate the complexities surrounding BIPA compliance and potential liabilities, requiring ongoing diligence in managing legal and insurance-related risks.