climate-related-liability-cover-commercial-insureds.md

title: Climate-Related Liability Cover (Commercial Insureds) excerpt: date: 2024-03-27T14:16:14Z modified: 2025-07-23T11:16:13Z file_type: md permalink: clauses/climate-related-liability-cover-commercial-insureds.html wpid: 2059 status: publish type: clause jurisdiction:

• England & Wales maintenance-status:
• Not maintained practice-area:
• Insurance eleventyComputed: clause_child_name: "Seb and Abby's Clause" clause_summary: This clause provides cover for climate-related injury and/or property damage in commercial insurance policies.  clause_last_updated_date: 2023-04-11 layout: layouts/clause.njk

Climate-Related Liability Cover (Commercial Insureds)

Child’s name

Seb and Abby's Clause

Summary

This clause provides cover for climate-related injury and/or property damage in commercial insurance policies.

What this clause does

Fills a gap in the UK insurance market, where there is currently no specific insurance cover for climate-related liability property damage or personal injury claims – i.e. climate-related injury or property damage caused/ contributed to by the policyholder's business.

Clause Content

[Drafting note: capitalised terms relate to either a defined term in this clause or a defined term in the main policy document that this clause is designed to be inserted into.]

[Drafting note: consider using Seb & Abby’s Clause with the condition in [Connor’s Clause] Condition to Liability Cover for Climate-Related Claims (Commercial Insureds).]

Climate-related claims liability section

1. Cover

1.1 [Subject to the terms and conditions of this policy of insurance] The Insurer will indemnify the Insured against legal liability to pay compensation and claimants’ costs and expenses in respect of Climate-related Injury or Climate-related Damage occurring within the Territorial Limits during the Period of Insurance in connection with the Business.

1.2 In addition the Insurer will pay costs and expenses incurred by the Insured or with the written consent of the Insurer in connection with the defence of any claim which may be the subject of indemnity under this Section.

[Drafting note: consider whether legal costs are to be in addition (as drafted) or included within the damages limit of indemnity. Alternatively, a costs inclusive clause could be restricted to certain jurisdictions – such as the USA.]

2. Limit of Indemnity

[EITHER]

The Insurer’s total liability for all compensation payable in respect of any one occurrence, or all occurrences of a series consequent on or attributable to one source, shall not exceed the [Per-Claim] Limit of Indemnity stated in the Schedule. The Insurer’s total liability for all compensation payable shall not in any event exceed the Total Limit of Indemnity stated in the Schedule.

[OR]

The Insurer’s total liability for all compensation payable shall not in any event exceed the Total Limit of Indemnity stated in the Schedule.

3. Conditions

[Consider using other appropriate policy conditions and/or the following Chancery Lane Project clauses as conditions:

(a) [Connor’s Clause] Condition to Liability Cover for Climate-Related Claims (Commercial Insureds) (as amended to be a condition precedent, not an exclusion)

(b) [Kitty’s Clause] General Condition to Commercial Insurance Policies (Climate Risk Assessment)/ [Lovisa’s Clause] Climate-Related Knowledge Sharing Between Insurer and Insured

4. Exclusions

[Drafting note: consider standard public liability exclusions – not incorporated here for simplicity e.g. exclusion for defective products/ workmanship.]

[Drafting note: consider reviewing the insured’s transition plan prior to inception unless using Connor’s Clause which requires a net zero transition plan (as defined in Connor’s Clause).]