After Climate Rulings, Insurers May Go On Coverage Offense

Two recently filed lawsuits, Aloha Petroleum Ltd. v. National Union Fire Insurance Co. and Everest Premier Insurance Co. v. Gulf Oil Ltd. Partnership, signal the beginning of litigation over liability insurance coverage for climate change-related lawsuits and damages.

In this article, we discuss these two lawsuits and their implications for the industry.

Since 2017, state and local governments around the U.S. have been filing lawsuits against oil and gas companies for their contribution to climate change.

The government entities allege that production and use of defendants’ fossil fuel products has created greenhouse gas pollution, which is causing global warming, sea level rise, and increased frequency and severity of extreme weather events, resulting in climate change-related injuries to the plaintiffs.

In addition, the government entities claim that the energy companies were aware for decades of the climate effects of the use of their fossil fuel products, but failed to disclose those dangers to consumers and regulators.