PFAS can be found in products as diverse as firefighting foam, food packaging and furniture. They've been incorporated into so many products because PFAS are virtually indestructible. Unfortunately, this indestructibility means that PFAS either slowly or never break down in the environment and so accumulate in water or soil — they can even be airborne. It's not uncommon for people to ingest or consume PFAS in drinking water. Indeed, the Environmental Working Group has estimated that more than 200 million Americans are drinking PFAS-contaminated water.*
The majority of PFAS lawsuits to date have been against the manufacturers of these chemicals and have involved drinking water contamination.
Insurance companies are not consistent in how they approach PFAS exposures. Some are starting to add PFAS exclusions to environmental policy forms or quotes, even when it isn't clear that there's a present or potential risk. Others are asking questions about PFAS as part of the underwriting process to see if they can get comfortable with offering coverage.
Studies have linked PFAS to various health concerns, leading many to see these chemicals as the next asbestos. Sarah Wirtz, National Environmental Liability Practice Leader at RPS, doesn't necessarily agree.
"Plaintiffs' attorneys are trying to link PFAS to various health issues," Wirtz observed. "But because PFAS appear in many everyday products — everything from cookware to clothing — it makes it hard to prove a link between a specific product or company and bodily injury."
A recent Biden administration move may shift more attention onto PFAS and water contamination. In June 2022, the EPA announced the availability of $1 billion in grant funding to help communities address PFAS and other containments in their drinking water supply.
Learn more about what's next for the Casualty market in the RPS 2022 U.S. Casualty Market Outlook.
Sources
*Andrews, David Q. and Olga V. Naidenko. "Population-Wide Exposure to Per- and Polyfluoroalkyl Substances from Drinking Water in the United States," Environmental Science & Technology Letters, 14 Oct 2020.
