Natural Resource Damages for Climate Change—An Idea Whose Time Is Not Yet Come, Part II: Climate Change NRD Claims—Get Coverage

Climate change litigation is in its infancy. As it matures, one type of suit that may emerge is a climate change-based natural resource damages (NRD) claim under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). While it is unlikely that climate change-based NRD claims could succeed under current law, a policyholder sued for such claims should be entitled to a defense under its liability insurance policies. Against the backdrop of some recent climate change lawsuits, this article anticipates insurance industry arguments against coverage for climate change NRD claims, and examines counter arguments in favor of coverage for such claims.