1. Insurer Files Climate Change Class
Actions
Farmers Insurance filed nine class
action lawsuits against almost 200
communities in the Chicago area for
failing to adequately prepare for flooding
and damage from severe rains,
Insurance Journal reports. The lawsuits
could be the first of many to determine
who can be held liable for the costs
incurred due to the effects of climate
change.

2. Farmers is arguing that local
governments should have been aware
that there would be consequences
stemming from the rising of global
temperatures. By their argument,
municipalities should have known that
climate change had the potential to
increase rainfall, and that sewers and
stormwater drains ought to have been
fortified in preparation. These cases
have potential to redefine what can
reasonably defined as an “act of god.” If
successful, these lawsuits could have
serious consequences for how
communities will have to budget for
potential future emergencies.

3. The City of Chicago claims that it has in
place a comprehensive Climate Action
Plan and that it is already investing
heavily on infrastructure to guard
against disasters from changing weather
patterns. Ironically, this foresight on the
part of the city may work against them in
these suits, as Farmers cites the
Climate Action Plan as evidence that the
government was aware of the potential
risks and failed to respond properly.
Flooding occurred in Illinois in April of
2013 resulting in over 64,000 Illinois
households being awarded more than
$218 million in aid and loans from the
federal government. Farmers has not
specified how much they paid in claims
due to last year’s flooding.

4. “It’s a long shot for the insurance
companies,” said Robert Verchick, who
previously served on the Obama
administration’s Climate Change
Adaptation Task Force, “but it’s not
completely implausible, and if you have
enough cases like this going forward it
might build some helpful precedent.”
To read more, head over to Insurance
Journal.