In the exuberance that followed the Second World War, per- and polyfluoroalkyl substances (PFAS) emerged as another modern miracle, a suite of synthetic chemicals with multiple applications from effective firefighting to heat, stain, and corrosion resistance.
PFAS chemicals are now ubiquitous and have a variety of uses, including:
Among its virtues, however, is endurance: PFAS chemicals are nearly impervious to degradation, and today, most people in the United States have been exposed to PFAS and have it in their blood.
Potential adverse health risks include kidney disease, thyroid disease, high blood pressure, high cholesterol and possibly some cancers. While there is no federal maximum concentration level (MCL) set for PFAS, the Environmental Protection Agency (EPA) advises a limit of 70 parts per trillion (ppt) for two of the most common PFAS compounds, PFOA/PFOS. Some states, like New Jersey, have set their own standards, and others plan to do so. But left untreated, PFAS lingers in soil and groundwater indefinitely, earning the nickname, the “forever chemical.”
As of January 2021, according to the non-profit Environmental Working Group, there are 2,337 locations in 49 states affected by PFAS contamination, including public and private water systems.
Four major contamination sources are:
As concern grows and scientific inquiry progresses, more states expect to propose MCLs; final regulations at the state and federal levels almost certainly will lead to increases in enforcement actions.
The actions of the EPA and some states to set MCL standards for PFAS, along with growing awareness of PFAS contamination, are key drivers of claims.
For example:
Other factors may also affect claims frequency and severity:
Given the long-lasting impacts of PFAS, having the appropriate insurance protection is paramount. At Liberty Mutual, our environmental liability team proactively helps customers manage these exposures by examining past and present insurance programs, including general liability policies, pollution legal liability, and production pollution policies. We also review all contracts for potential indemnity benefits or obligations.
Most importantly, as we continue to investigate and learn, we use the insights we gain to prepare for the next emerging contaminant, helping our customers mitigate risk by anticipating and preparing for future needs.
This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.
