Claims from U.S. Climate Lawsuits Could Be on the Rise

Aug 31, 2023

Climate-related extreme weather events continue to be a “hot topic.” Scorching heat, unusually heavy rainfalls, raging floods, and wildfires have all left their mark on North America this summer, while the world reaches record land temperatures

Things aren’t just heating up outside, though. They’re heating up in the courtroom as well. The total number of climate-related cases around the world has doubled in the past eight years. No surprise, given our litigious society, the U.S. leads the way, accounting for 70% of documented cases since 1986. 

The payouts from climate-related cases can be significant, as Keurig recently learned. This past February, the single-serve coffee company was ordered to pay a $10 million settlement as a part of a lawsuit brought against them accusing them of dishonestly marketing their disposable K-Cups as recyclable. 

More Lawsuits on the Horizon?

Thanks in part to a recent move by the Supreme Court this year, we could be seeing a lot more lawsuits in the future. In April, the Supreme Court rejected several oil company appeals, as part of efforts to hold businesses accountable for their effects on climate change.

This decision removed barriers for almost two dozen stalled climate lawsuits, allowing them to move forward at the state level with a jury. It also may pave the way for countless more lawsuits against the oil industry. 

Impacts of Climate-Related Lawsuits on Insurance

What does this have to do with insurance? A lot, in fact. 

According to Deloitte, a swell in costly litigations and payouts related to the current climate crisis could have a significant impact on insurers who underwrite liability insurance lines of business, like Directors’ and Officers’ (D&O), Errors and Omissions (E&O), and Professional Indemnity (PI) insurance. Insureds with climate risk litigation exposures could find themselves in a position of sustaining costly losses, if a number of their policyholders find themselves on the losing side of a court case and look to their insurer for financial recourse. 

As carriers take action to protect themselves against these risks and associated losses, we could see more policy exclusions, rate or pricing changes, or tightening of terms related to climate litigation. 

Interested in learning more? Here are a few resources: 

When it comes to environmental insurance, the rules of the game are always changing. It’s important to work with a reputable wholesaler, like Jencap, who has expertise in environmental insurance and keeps a close eye on how current environmental trends are impacting the industry and insureds. Contact Jencap today to speak to one of our specialists.

The Jencap Environmental Insurance Team

The Jencap Environmental Insurance Team

Jencap’s team of environmental underwriters have dedicated their entire careers to the environmental sector — they are environmental professionals that happen to sell insurance. Our brokers have backgrounds as environmental consultants and geologists, which gives you and your clients a significant advantage. When it comes to environmental coverage, you don’t want a generalist broker. With the Jencap team, you can trust our brokers have worked every angle of the environmental industry and can customize our exclusive program capabilities for any environmental coverage need.
climate crisis | environmental liability | lawsuits



Jencap Cannabis Insurance Insights

The Jencap Weather Report: How Climate Change is Shifting the Insurance Industry

From wildfires to hurricanes, weather-related disasters are tallying unprecedented losses. Here’s how climate change is impacting insurance coverage.





Whether they realize it or not, most every business has some sort of environmental exposure. It’s more important than ever for companies to evaluate their environmental risk profile and secure appropriate insurance coverage. At Jencap, we don’t have generalist brokers; our dedicated team of environmental brokers has worked every angle of the environmental industry and knows it inside and out. By partnering with Jencap, you’ll have an industry-leading wholesaler on your side, working with you and your clients to secure the coverage — and peace of mind — your clients need.

Stay Informed

Want to receive information from Jencap on timely marketplace trends, hot new product and program launches, and valuable product expertise that will set you up to win? Sign up below to receive email communications from Jencap.

This field is for validation purposes and should be left unchanged.