---
title: "Insurance: Disclosure and Mitigation of Pending Climate Change Litigation"
excerpt: 
date: 2024-03-27T14:17:16Z
modified: 2025-07-23T11:24:20Z
file_type: md
permalink: clauses/insurance-disclosure-and-mitigation-of-pending-climate-change-litigation.html
wpid: 2183
status: publish
type: clause
jurisdiction:
  - England & Wales
maintenance-status:
  - Not maintained
practice-area:
  - Insurance
eleventyComputed:
  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
layout: layouts/clause.njk
---

# Insurance: Disclosure and Mitigation of Pending Climate Change Litigation

## 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**