Invasion of privacy Liability Insurance is a type of insurance coverage that provides protection to businesses against lawsuits related to the invasion of an individual’s privacy. This can include claims related to intrusion upon seclusion, public disclosure of private facts, and false light. Invasion of privacy claims can be costly and time-consuming for businesses to defend against, which is why it is important for businesses to consider purchasing Employment Practices Liability Insurance (EPLI) that includes Invasion of Privacy Liability coverage.
One reason for businesses to buy EPLI coverage that includes Invasion of Privacy Liability Insurance is the potential cost of a lawsuit. Invasion of privacy claims can result in significant legal fees, court costs, and damages awarded to the plaintiff. Without adequate insurance coverage, an invasion of privacy claim could financially devastate a business.
One example of a case where Invasion of Privacy Liability Insurance was needed and paid is the case of Shore v. Federal Express Corp., 543 F. Supp. 2d 1048 (E.D. Cal. 2008). In this case, the plaintiff alleged that his employer, Federal Express, invaded his privacy by monitoring his personal email account. The plaintiff was awarded over $200,000 in damages, including compensatory and punitive damages. Federal Express was able to recover a portion of these damages from its insurer, which provided coverage under its EPLI policy that included Invasion of Privacy Liability coverage. Link: https://casetext.com/case/shore-v-fedex-corp
Another example of a case where Invasion of Privacy Liability Insurance was needed and paid is the case of Dowdy v. Metropolitan Life Ins. Co., 199 F. Supp. 2d 991