Offers defense and indemnity coverage on a claims-made basis
Lexington Insurance Company, a Chartis company, has launched CarbonCover Registry, a professional liability coverage for carbon registries.
CarbonCover Registry is the first offering in Lexington’s new CarbonCover suite of products designed for companies operating in the developing climate change and greenhouse gas emissions sector. CarbonCover Registry provides defense and indemnity coverage on a claims-made basis, and offers worldwide protection for claims brought in the US.
According to Lexington Insurance, the new offering provides professional liability coverage for carbon registries that issue and track carbon offset credits; train, accredit and oversee third party verifiers; and establish standards for the development, quantification and verification of greenhouse gas emissions reduction projects.
David Bresnahan, executive vice president of Lexington, said: “The challenge of the North American carbon market is to help ensure the integrity of various offset credits to preserve value and enable linkage across markets.
“Carbon offset credits issued by a registry could be called into question during a subsequent verification process. If a registry has issued carbon offset credits in error, CarbonCover Registry provides liability protection against claims from purchasers of those credits. By providing registries this unique coverage, CarbonCover Registry helps to promote market confidence in the value of carbon offset credits.”