“We are witnessing a marked increase in class action lawsuits alleging technical violations of the Fair Credit Reporting Act (FCRA) by businesses that conduct background checks on prospective employees,” write Jonathan L. Schwartz and Colin B. Willmott, partners in Goldberg Segalla’s Global Insurance Services Practice Group. “If left unchecked, these lawsuits present an unanticipated and significant exposure for insurers.”
In this article for InsideCounsel, Jonathan and Colin explore this unfolding trend in class action suits — and what insurers can do to mitigate for potential exposure.
“Commercial general liability insurers have already established effective defenses against these claims,” they write. “Employment practices liability insurers can likewise protect themselves by including specifically targeted exclusions that should eliminate this exposure altogether.”