--- title: "Insurance: Disclosure and Mitigation of Pending Climate Change Litigation" date: 2024-03-27T14:17:16Z modified: 2025-07-23T11:24:20Z permalink: "https://chancerylaneproject.org/clauses/insurance-disclosure-and-mitigation-of-pending-climate-change-litigation/" type: clause status: publish excerpt: "" wpid: 2183 jurisdiction: - England & Wales maintenance-status: - Not maintained practice-area: - Insurance clause_child_name: "Cassie's Clause" clause_summary: "

A clause ‘extending’ insurance policies to cover pending climate change litigation, on the condition that the policyholder discloses its net zero targets and climate risk exposure.

" clause_last_updated_date: 2021-09-29 related_clauses: false --- ## Child’s name Cassie’s Clause ## Summary A clause ‘extending’ insurance policies to cover pending climate change litigation, on the condition that the policyholder discloses its net zero targets and climate risk exposure. ## What this clause does This clause gives policyholders certainty over whether (and to what extent) climate change litigation related to past business activity will be covered/excluded from the scope of their policy(ies); reduces (re)insurers’ exposure to protracted involvement in litigation for which there may or may not be express policy cover; and strengthens the commercial relationship between (re)insurers and policyholders through collaborative working despite legal uncertainties impacting their contractual obligations (without necessarily relying on blanket exclusions of cover / risking early coverage denials). ## Clause Content **Pending Climate Change Litigation Extension** Subject to the payment of the Additional Premium as detailed below, this Policy is extended to indemnify the Insured \[and/or any Additional Insureds as specified in this Policy\] for Pending Climate Change Litigation, subject to the terms and conditions listed below (this “**Extension**”). **Indemnification Sum** Under this Extension, the Insurer\[s\] will indemnify the Insured \[and/or Additional Insureds\] for any sums that the Insured may be legally liable to pay as a result of a Pending Climate Change Litigation, up to the maximum amount of GBP \[X\] per claim (the “**Indemnification Sum**”). The Insurer\[s\] may at any time pay to the Insured the full Indemnification Sum in connection with any claim arising from a Pending Climate Change Litigation, at which point the Insurer shall have no further liability in connection with such claim. The Indemnification Sum shall be: (a) subject to the Insured \[and/or Additional Insureds\] providing the Insurer\[s\] with a full and final discharge and release, including from any continued or future involvement in the Pending Climate Change Litigation \[or any claim or matter arising out of or in any way connected or related to the Pending Climate Change Litigation\], upon payment; (b) subject to a deductible of GBP \[x\] per claim; (c) in addition to the overall \[Limit of Indemnity\] under the Policy; and (d) inclusive of any defence costs and expenses, claimants’ costs and expenses and any other damages, costs, expenses or similar that become payable by the Insured \[and/or Additional Insureds\] to the Claimants and/or any Third Party in relation to the Pending Climate Change Litigation \[or any claim or matter arising out of or in any way connected or related to the Pending Climate Change Litigation\]. **Other Insurance** In addition to the General Conditions listed in this Policy, if a Pending Climate Change Litigation is covered under another insurance policy, this Extension shall apply in excess of any other valid and applicable insurance policy held by the Insured \[and/or Additional Insureds\]. **Conditions Applicable To This Extension** This Extension is subject to the following conditions: 1\) The Additional Premium must be paid within \[x\] days of Policy Inception; 2\) The Insured \[and/or Additional Insureds\] fully discloses its contemporaneous assessment of its exposure to litigation arising from Climate Change or a Climate Change Event, and the measures being taken to mitigate the risks of litigation arising from Climate Change or a Climate Change Event, within \[x\] days of Policy Inception; 3\) The Insured \[and/or Additional Insureds\] fully discloses the Net Zero Target(s) and Net Zero Target Plan(s) applicable to all their businesses within \[x\] days of Policy Inception; \[and\] \[4) The Insured shall report \[annually\] on progress towards achieving its Net Zero Target within \[x\] days of \[x\].\] 5\) The Insured shall: _\[Insert net zero-related organisational requirements from_ [_Sebastian’s Clause_](https://chancerylaneproject.org/climate-clauses/entire-business-net-zero-objectives/) _and other TCLP’s published_ [_climate clauses_](https://chancerylaneproject.org/climate-clauses/) _as appropriate. Given that the insurer may have the right to avoid liability in the event that a condition to cover is not satisfied, each of these should be carefully considered and there should be a specified timeframe for compliance. Consider linking the value of the insured limit available / applicable deductible / premium payable or policy renewals to the obligations and targets.\]_ \[6) The Insured \[and/or Additional Insureds\] shall provide the Insurer\[s\] with all requested documentation to verify the existence of Pending Climate Change Litigation within \[x\] days of Policy Inception. Such documentation shall include, but is not restricted to, the formal court pleadings and pre-action correspondence.\] _\[Drafting note: Delete if this is already a separate requirement of underwriters before cover incepts.\]_ This cover overrides incompatible General Conditions of Policy. **Schedule \[x\]: Pending Climate Change Litigation** ## Topics **Jurisdictions:** [England & Wales](https://chancerylaneproject.org/news/jurisdiction/england-wales/) **Maintenance status:** [Not maintained](https://chancerylaneproject.org/news/maintenance-status/not-maintained/) **Practice Areas:** [Insurance](https://chancerylaneproject.org/news/practice-area/insurance/)