You may have seen the term ‘forever chemicals’ in the news in recent months, as health studies linking PFAS (per- and polyfluoroalkyl substances) to health issues like immune suppression and increased cancer risk circulate in the news. But what exactly are PFAS and how do they affect us and your businesses?
PFAS, short for per- and polyfluoroalkyl substances, are man-made chemicals that are resistant to heat, water, and oil. They are found in everyday items like non-stick cookware, waterproof fabrics, and scuff-resistant paint. There are over 11,000 types of PFAS, and not all of them have been regulated by the Environmental Protection Agency (EPA). Some people even compare PFAS to asbestos because of their potential dangers. In industries such as senior living and healthcare, the impact to resident or patient immune systems could lead to health risks especially for those with pre-existing health conditions.
In April 2024, the EPA took steps to regulate PFAS contamination. Two widely used variations were designated as hazardous substances; drinking water standards were established; and guidance on destruction and disposal was provided. However, cleaning up PFAS contamination is difficult and expensive, and regulation is an ongoing process.
Despite this, litigation and coverage changes related to PFAS are on the rise. Over 79 industries, including manufacturers and distributors, have been implicated in PFAS contamination.
Insurance policies that are typically affected by PFAS-related claims are general liability or products liability. Most claims are related to bodily injury. Insurance carriers have started to change their approach due to the increase in cases. In fact, ISO published CGL endorsements in the summer of 2023 that explicitly exclude PFAS-related claims. Illinois is particularly impacted by PFAS contamination: in 2021 the state EPA tested for 18 PFAS at over 1400 sites, and 149 confirmed detections. Clients based in Illinois may have noticed the application of a PFAS exclusion in their policies and should discuss potential implications and alternative solutions with their insurance broker.
To manage the risks associated with PFAS, businesses should review their operations and assess their exposure. This can include conducting a self-assessment to identify potential sources of PFAS exposure, such as surface-treated products or firefighting systems. Efforts should be made to minimize or eliminate the use of PFAS-containing chemicals in products or processes.
Insurance coverage for PFAS-related risks is available, and it’s important to evaluate both current and past policies with the help of an insurance broker.
