Rex Heinke & Warren J. Biro

Abstract

This article discusses whether commercial liability insurers have a duty to provide coverage to policyholders who are sued because their activities contribute to global warming. It focuses on a decision by the Virginia Supreme Court in AES Corp. v. Steadfast Insurance Co., in which the plaintiff insurer argued that emitting carbon dioxide into the atmosphere was not an “occurrence” as defined in the insurance policy and therefore did not trigger coverage. The Virginia Supreme Court agreed, holding that the insurer was not required to provide coverage for any period in which the policyholder knew, or should have known, that the emission of carbon dioxide had a substantial probability of causing harm.

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