---
title: Climate-Related Liability Cover (Commercial Insureds)
excerpt: 
date: 2024-03-27T14:16:14Z
modified: 2025-07-23T11:16:13Z
file_type: md
permalink: clauses/climate-related-liability-cover-commercial-insureds.html
wpid: 2059
status: publish
type: clause
jurisdiction:
  - England &amp; Wales
maintenance-status:
  - Not maintained
practice-area:
  - Insurance
eleventyComputed:
  clause_child_name: "Seb and Abby's Clause"
  clause_summary: This clause provides cover for climate-related injury and/or property damage in commercial insurance policies. 
  clause_last_updated_date: 2023-04-11
layout: layouts/clause.njk
---

# Climate-Related Liability Cover (Commercial Insureds)

## Child’s name

Seb and Abby's Clause

## Summary

This clause provides cover for climate-related injury and/or property damage in commercial insurance policies.

## What this clause does

Fills a gap in the UK insurance market, where there is currently no specific insurance cover for climate-related liability property damage or personal injury claims – i.e. climate-related injury or property damage caused/ contributed to by the policyholder's business.

## Clause Content

*\[Drafting note: capitalised terms relate to either a defined term in this clause or a defined term in the main policy document that this clause is designed to be inserted into.\]*

\[*Drafting note: consider using Seb &amp; Abby’s Clause with the condition in \[*[*Connor’s Clause*](https://chancerylaneproject.org/climate-clauses/exclusions-from-insurance-coverage-for-climate-harms/)*\] Condition to Liability Cover for Climate-Related Claims (Commercial Insureds).*\]

**Climate-related claims liability section**

 **1.** **Cover**

1.1 \[Subject to the terms and conditions of this policy of insurance\] The **Insurer** will indemnify the **Insured** against legal liability to pay compensation and claimants’ costs and expenses in respect of Climate-related Injury or Climate-related Damage occurring within the **Territorial Limits** during the **Period of Insurance** in connection with the **Business**.

1.2 In addition the **Insurer** will pay costs and expenses incurred by the **Insured** or with the written consent of the **Insurer** in connection with the defence of any claim which may be the subject of indemnity under this Section.

\[*Drafting note: consider whether legal costs are to be in addition (as drafted) or included within the damages limit of indemnity. Alternatively, a costs inclusive clause could be restricted to certain jurisdictions – such as the USA.*\]

**2.**  **Limit of Indemnity**

\[EITHER\]

The **Insurer’s** total liability for all compensation payable in respect of any one occurrence, or all occurrences of a series consequent on or attributable to one source, shall not exceed the \[Per-Claim\] Limit of Indemnity stated in the Schedule. The **Insurer’s** total liability for all compensation payable shall not in any event exceed the Total Limit of Indemnity stated in the Schedule.

\[OR\]

The **Insurer’s** total liability for all compensation payable shall not in any event exceed the Total Limit of Indemnity stated in the Schedule.

 **3.** **Conditions**

\[Consider using other appropriate policy conditions and/or the following Chancery Lane Project clauses as conditions:

(a) [\[Connor’s Clause\]](https://chancerylaneproject.org/climate-clauses/exclusions-from-insurance-coverage-for-climate-harms/) Condition to Liability Cover for Climate-Related Claims (Commercial Insureds) (as amended to be a condition precedent, not an exclusion)

(b) [\[Kitty’s Clause](https://chancerylaneproject.org/climate-clauses/general-condition-to-commercial-insurance-policies-climate-change-risk-assessment/)\] General Condition to Commercial Insurance Policies (Climate Risk Assessment)/ \[[Lovisa’s Clause](https://chancerylaneproject.org/climate-clauses/climate-related-knowledge-sharing-between-insurer-and-insured-new/)\] Climate-Related Knowledge Sharing Between Insurer and Insured

**4.** **Exclusions**

\[*Drafting note: consider standard public liability exclusions – not incorporated here for simplicity e.g. exclusion for defective products/ workmanship.*\]

\[*Drafting note: consider reviewing the insured’s transition plan prior to inception unless using* [*Connor’s Clause*](https://chancerylaneproject.org/climate-clauses/exclusions-from-insurance-coverage-for-climate-harms/) *which requires a net zero transition plan (as defined in Connor’s Clause).*\]
