Climate Change Liability Moves Forward: Does Your Insurance Cover Your Risk?

Originally published February 2010

If your company faces risk of exposure to climate change liabilities, you need to be aware that there were two significant decisions that favor plaintiffs seeking to hold companies liable in court for damages allegedly caused by greenhouse gas (GHG) emissions. There are also recent regulatory developments advancing these issues. This alert addresses these new developments and how companies should assess their insurance to mitigate litigation expenses and potential liability. "

Summary: Climate change liability exposure is advancing and insurance coverage with respect to this potential exposure has not been tested. A company can increase the probability that its CGL, D&O and/or Pollution Legal Liability insurance covers costs associated with these claims by ensuring the broadest possible coverage terms in these policies. Given the complex coverage issues, companies should work closely with their risk manager, broker, and