general-condition-to-commercial-insurance-policies-climate-change-risk-assessment.md

title: "General Condition to Commercial Insurance Policies: Climate Change Risk Assessment" excerpt: date: 2024-03-27T14:16:43Z modified: 2025-07-23T11:19:28Z file_type: md permalink: clauses/general-condition-to-commercial-insurance-policies-climate-change-risk-assessment.html wpid: 2117 status: publish type: clause jurisdiction:

• England & Wales maintenance-status:
• Not maintained practice-area:
• Corporate, mergers and acquisitions (M&A)
• Insurance eleventyComputed: clause_child_name: "Kitty's Clause" clause_summary: A clause requiring companies to carry out a climate change risk assessment, to be inserted into the General Conditions of corporate insurance policies across all lines of business. clause_last_updated_date: 2021-09-30 layout: layouts/clause.njk

General Condition to Commercial Insurance Policies: Climate Change Risk Assessment

Child’s name

Kitty's Clause

Summary

A clause requiring companies to carry out a climate change risk assessment, to be inserted into the General Conditions of corporate insurance policies across all lines of business.

What this clause does

This clause prompts corporate policyholders and insurers to assess the climate-related risks posed to a policyholder’s business. In doing so, it brings climate-related risks to businesses to the fore for corporate policyholders and their insurers which in turn builds sector familiarity (in identifying and managing climate-related risks), refines market understanding and influences market behavioural norms in relation to managing and mitigating climate-related risks.

Clause Content

General Conditions to the Policy

Climate Change Risk Assessments

You will nominate and instruct an appropriately qualified Climate Professional to carry out a climate change risk assessment using the form* provided to You by Us within six (6) months of the inception of cover under this Policy[, using reasonable endeavours to complete the form accurately and completely in good faith]. [You will present the climate change risk assessment to Your Board of Directors for review.]

* [Drafting note: Pro forma depends on estimated turnover of insured i.e. basic process for a small or medium enterprise (SME) graduating up to an assessment in line with TCFD guidance for larger companies (bands to be confirmed).