Let’s Talk About PFAS
The discussion of PFAS chemicals can be a complicated one in the environmental insurance world. Many insurance companies have blanket exclusions for PFAS in their policies and some underwriters are very reluctant to take on accounts where this exposure may be present. Others are open to discussing it on an account-by-account basis. Here’s what we know:
What are PFAS chemicals?
Perfluoroalkyl and polyfluoroalkyl (PFAS) chemicals are human-made chemicals used extensively in manufacturing a wide variety of goods. PFAS help create things that resist or repel water or oil. Accordingly, PFAS are also valuable for making stain-resistant and even heat-resistant fabrics. You’ll commonly find PFAS in nonstick pots, pans, and waterproof packaging. Some environmental experts liken PFAS to asbestos, which was once widely used to deter fire but is now considered dangerous.
How do insurance carriers view PFAS chemicals? Are there PFAS standards?
In recent rulings, the courts have determined that PFAS are pollutants; however, the topic is fraught with uncertainty. There is ambiguity about dangerous levels, and although there are thousands of PFAS chemicals, the EPA currently has only regulated a handful of them. These chemicals are measured by parts per trillion whereas most chemicals are measured by parts per million. So, there is a much smaller scale to detect their presence.
If a company has to clean up the environment after PFAS contaminates the water, the next issue is: When is the task complete? We don’t yet know the full implications of PFAS exposure, nor do we have a standard for cleaning them up. Since the effects of low level PFAS are still unclear, some insurance carriers are just not willing to risk writing coverage for sites with a potential exposure.
What’s next for PFAS chemicals?
In mid-March 2023, the White House announced the first-ever national standard to address PFAS in drinking water, expressing a commitment to achieving safe drinking water for every community. Additionally, the EPA is working to increase understanding of the risks involved with PFAS in human health and the environment. This includes developing better ways to manage and dispose of these chemicals.
As more information emerges about the impacts of PFAS, we will hopefully understand more about how a contaminated site may move into nearby water, air, or soil. This research will work to break the exposure pathway to keep exposures more manageable. And there are efforts already underway to establish new ways to remediate a site affected by these chemicals. Of course, this analysis will look at the thousands of lesser-known toxic PFAS affecting people and the environment, not just the well known ones. To see more information on PFAS exposures and news stories on this topic, visit our PFAS exposure spotlight page.
For more information about PFAS and environmental insurance, please contact us.
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Source: https://www.epa.gov/pfas/increasing-our-understanding-health-risks-pfas-and-how-address-them
