---
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*](https://www.tcfdhub.org/) *for larger companies (bands to be confirmed).*