Last week, the Eleventh Circuit held that an invasion-of-privacy exclusion in an insured’s policy barred coverage and that Liberty Insurance Underwriters Inc.  did not have to cover the $60.4 million settlement of  a class action against the insured, iCan Benefit Group LLC (iCan), for sending robotexts in alleged violation of the Telephone Consumer Protection Act. The exclusion for claims “arising out of” an invasion of privacy applies because the class claim has a connection with the invasion of privacy. The complaint doesn’t have to allege the common law tort of invasion of privacy to trigger the coverage exclusion.

The class action against iCan alleged that class members suffered “actual harm in the form of annoyance, nuisance, invasion of privacy.” After Liberty denied the request for coverage by iCan, iCan and class plaintiffs settled for $60.4 million and payment of that settlement was “not [to] be satisfied from or executed on any assets or property of iCan, [but] shall only be satisfied from Liberty.”

Photo of Kathryn Rattigan Kathryn Rattigan

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security…

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security compliance. Kathryn helps clients review, revise and implement necessary policies and procedures under the Health Insurance Portability and Accountability Act (HIPAA). She also provides clients with the information needed to effectively and efficiently handle potential and confirmed data breaches while providing insight into federal regulations and requirements for notification and an assessment under state breach notification laws. Prior to joining the firm, Kathryn was an associate at Nixon Peabody. She earned her J.D., cum laude, from Roger Williams University School of Law and her B.A., magna cum laude, from Stonehill College. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.