Model clause

Exclusions from insurance coverage for climate harms

Connor's Clause

An explicit exclusion from cover for climate liability, costs and losses occasioned because of GHG emissions and where the Insured has failed to meet GHG emissions targets.

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Why use this?

Connor's Clause could be integrated into any and all insurance contracts.

How it promotes a net zero future

With a clear exclusion for any climate liability and liability for GHG emissions, policyholders will understand that they are to be solely responsible for the costs and expenses of their GHG emissions and their failure to meet emissions targets. This will incentivise them to actively manage climate issues and limit their operational impact.

By explicitly excluding cover for such claims insurers and reinsurers will ensure that the risk of liability for such claims remains with the entities that are responsible for the emissions, and encourages more climate-conscious behaviour on the part of those insureds and industries.

Disclaimer - please read

The clauses on this website (and published in our Climate Contract Playbook) have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.

The clauses on this website (and published in our Climate Contract Playbook) are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the clauses will achieve the relevant climate goal or any other outcome.

This website (and the Climate Contract Playbook) does not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and does not contain legal or financial advice. The clauses are precedents for legal professionals to use, amend and negotiate using their professional skill and judgement and at their own risk.

While care has been taken in the drafting of these clauses, neither The Chancery Lane Project nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these clauses or any other person. Users should use their own professional judgement in the application of these clauses to any particular circumstance or jurisdiction or seek independent legal advice.

At present, all the clauses are based on the laws of England and Wales. We encourage the conversion of these precedent clauses for use in other jurisdictions.

The clause

Additional Definitions 

Greenhouse Gas (GHG or GHGs) means the natural and anthropogenic gases which trap thermal radiation in the earth’s atmosphere and as specified in Annex A to the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) or otherwise specified by the UNFCCC and which currently include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3).

Greenhouse Gas Emissions (GHG Emissions) means emissions of Greenhouse Gases over a specified area and period of time, each expressed as a total in units of carbon dioxide equivalent (CO2e) [and calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard or such other equivalent and generally recognised Greenhouse Gas emission calculation methodology].

Claim means written demands, civil or criminal proceedings, extradition proceedings, regulatory or administrative proceedings against the Policyholder for actual or alleged, negligence, misstatements, default, breach of duty or breach of trust.

Climate Change means a change in the state of the climate that can be identified and that persists for [an extended period of time/decades] and where the change is caused directly or indirectly by (i) human activity that alters the composition of the global atmosphere or (ii) natural processes, including volcanic eruptions and changes of solar cycles.

Additional Clause

This Policy does not cover liability in respect of any actual or potential effects of Climate Change, including liability in respect of an actual or alleged failure by the Insured to reduce or limit GHG Emissions in line with emissions-reductions targets.

This Policy does not cover any Claims [defence costs or any other costs, fees or expenses] of any kind whatsoever directly or indirectly relating to, arising out of or in consequence of:

(1) GHG Emissions by the Insured or for which the Insured is responsible.

(2) Any actual or alleged failure to reduce or limit GHG in line with emissions-reductions targets.

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