condition-to-liability-cover-for-climate-related-claims-commercial-insureds.md

title: Condition to Liability Cover for Climate-Related Claims (Commercial Insureds) excerpt: date: 2024-03-27T14:16:17Z modified: 2025-07-23T11:16:35Z file_type: md permalink: clauses/condition-to-liability-cover-for-climate-related-claims-commercial-insureds.html wpid: 2065 status: publish type: clause jurisdiction:

• England & Wales maintenance-status:
• Not maintained practice-area:
• Insurance eleventyComputed: clause_child_name: "Connor's Clause" clause_summary: A condition to insurance cover requiring the insured to put in place a robust net zero transition plan prior to the inception of cover for climate-related liability claims.  clause_last_updated_date: 2022-04-06 layout: layouts/clause.njk

Condition to Liability Cover for Climate-Related Claims (Commercial Insureds)

Child’s name

Connor's Clause

Summary

A condition to insurance cover requiring the insured to put in place a robust net zero transition plan prior to the inception of cover for climate-related liability claims.

What this clause does

This clause requires a commercial policyholder to have a robust net zero transition plan in place (including emissions reductions targets) at the inception of an insurance policy, before it can access insurance liability cover for climate-related claims. This will drive good behaviour, put the insured on a path to net zero and reduce the risk of climate-related claims being made against the insured, ensuring that the insurer’s business is sustainable.

Clause Content

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

1. Conditions to Cover

It is a condition precedent to any liability of the Insurer under Section ● of this Policy*, that the Insured has in place a Net Zero Transition Plan.**

* [Drafting note: Consider writing into this section of the policy, the cover in [Seb and Abby’s Clause] Climate-Related Claims Liability Cover (Commercial Insureds).]

** [Drafting note: Consider also including:

• [Kitty’s Clause] General Condition to Commercial Insurance Policies: Climate Change Risk Assessment; or
• [Lovisa’s Clause] Climate-Related Knowledge Sharing Between Insurer and Insured,– not as conditions precedent to liability, to ensure compliance with the Insurance Act 2015.]