Virginia Supreme Court Limits Insurer’s Duty to Defend in Climate Change Lawsuits
AES Corp. v. Steadfast Insurance Co.,1 was a closely watched Virginia Supreme Court case that, as the New York Times put it, basically asked whether an insurance company has to “foot the bill for a company facing damages over climate change.”2 The case was significant for the insurance industry and others interested in climate change litigation, because it was the first of its kind to reach an appellate court. The court ultimately held that an insurer has no duty to defend or indemnify against climate change-related injuries under the terms of its general commercial liability (GCL) insurance policy.