Insurers may need to exclude climate change related claims from their policies to protect themselves against politically motivated lawsuits being launched against their insureds says Reynolds Porter Chamberlain LLP (RPC).
The insurance law firm said at its Climate Change and the Insurance Industry Seminar, that a number of cases have recently been launched against companies for their alleged role in contributing towards global warning.
The costs of defending such legal cases would normally be paid by a company's general liability insurance.
Alex Hamer, Partner, of RPC said that insurers' exposure would not necessarily be the result of judgments against their insured client but simply from the huge legal defence costs that would be incurred.
Hamer added: “Personally I am very doubtful as to whether under current laws and using current scientific techniques the specific damage caused by a climate change event could ever be attributed to a particular defendant. Unfortunately, however, you can't ignore a claim against you no matter how frivolous you think it is.”
On 20 September the Attorney General of California launched a claim against the big car manufacturers for causing damage to the State of California via their contribution to green house gases.
Previously in 2004 an action was brought by seven US states against 174 power companies. Climate Change cases have also been launched in Australia, Germany and Argentina.
