--- title: Climate-Related Liability Cover (Commercial Insureds) date: 2024-03-27T14:16:14Z modified: 2025-07-23T11:16:13Z permalink: "https://chancerylaneproject.org/clauses/climate-related-liability-cover-commercial-insureds/" type: clause status: publish excerpt: "" wpid: 2059 jurisdiction: - England & Wales maintenance-status: - Not maintained practice-area: - Insurance 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 related_clauses: false timestamp: 2025-07-23T11:16:13Z tags: - England & Wales - Not maintained - Insurance --- ## 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 \[_[_Connor’s Clause_](https://chancerylaneproject.org/climate-clauses/exclusions-from-insurance-coverage-for-climate-harms/)_\] 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) [\[Connor’s Clause\]](https://chancerylaneproject.org/climate-clauses/exclusions-from-insurance-coverage-for-climate-harms/) Condition to Liability Cover for Climate-Related Claims (Commercial Insureds) (as amended to be a condition precedent, not an exclusion) (b) [\[Kitty’s Clause](https://chancerylaneproject.org/climate-clauses/general-condition-to-commercial-insurance-policies-climate-change-risk-assessment/)\] General Condition to Commercial Insurance Policies (Climate Risk Assessment)/ \[[Lovisa’s Clause](https://chancerylaneproject.org/climate-clauses/climate-related-knowledge-sharing-between-insurer-and-insured-new/)\] Climate-Related Knowledge Sharing Between Insurer and Insured **4.** **Exclusions** \[_Drafting note: consider standard public liability exclusions – not incorporated here for simplicity e.g. exclusion for defective products/ workmanship._\] \[_Drafting note: consider reviewing the insured’s transition plan prior to inception unless using_ [_Connor’s Clause_](https://chancerylaneproject.org/climate-clauses/exclusions-from-insurance-coverage-for-climate-harms/) _which requires a net zero transition plan (as defined in Connor’s Clause)._\] ## Definitions **Business** means the business specified in the Schedule. **Climate Change** means ‘change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods’, as defined in Article 1(2) of the UN Framework Convention on Climate Change 1992. **Climate-related** **Damage** means loss, damage or destruction arising from Climate Change. **Climate-related** **Injury** means bodily injury or death arising from Climate Change. **Period of Insurance** means the period of insurance stated in the Schedule. **Territorial Limits** means the territorial limits stated in the Schedule. ## Topics **Jurisdictions:** [England & Wales](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/jurisdiction/england-wales.md) **Maintenance status:** [Not maintained](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/maintenance-status/not-maintained.md) **Practice Areas:** [Insurance](https://chancerylaneproject.org/wp-content/uploads/wp-mfa-exports/taxonomy/practice-area/insurance.md)