---
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* [*\[Seb and Abby’s Clause\]*](https://www.chancerylaneproject.org/climate-clauses/climate-related-liability-cover-commercial-insureds/) *Climate-Related Claims Liability Cover (Commercial Insureds).*\]

\*\* \[*Drafting note: Consider also including:*

- [*\[Kitty’s Clause*](https://chancerylaneproject.org/climate-clauses/general-condition-to-commercial-insurance-policies-climate-change-risk-assessment/)*\] General Condition to Commercial Insurance Policies: Climate Change Risk Assessment; or*
- *\[*[*Lovisa’s Clause*](https://chancerylaneproject.org/climate-clauses/climate-related-knowledge-sharing-between-insurer-and-insured-new/)*\] Climate-Related Knowledge Sharing Between Insurer and Insured,– not as conditions precedent to liability, to ensure compliance with the Insurance Act 2015.*\]