Scott Seaman Discusses Prospect of Insurance Coverage Disputes over ESG 'Greenwashing' Claims

Scott Seaman, the Chicago-based co-chair of Hinshaw's global Insurance Services Practice Group, discussed with Law360 Insurance Authority the prospect of future insurance coverage disputes in connection with increased scrutiny of company statements regarding environmental, social, and governance (ESG) issues.

Acknowledging that allegations of greenwashing—where companies falsely suggest their products are more environmentally friendly than they really are—can have severe reputational, financial, and legal consequences, Seaman noted, "there is an important distinction - and often a large delta - between allegations and proof of greenwashing."

With regard to climate change lawsuits filed by state and local governments that involve greenwashing claims, Seaman said government entities will face many more challenges than in the opioid instance.

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"'Greenwashing' Claims Likely to Kick-Start Coverage Battles" was published by Law360 Insurance Authority on March 14, 2022.