The growing threat of litigation surrounding per- and polyfluorinated alkyl substances (PFAS) has prompted the German Insurance Association to advise insurance companies to reduce coverage for PFAS-related damages in their commercial and product liability policies. PFAS, commonly found in non-stick cookware, waterproof clothing, and stain-resistant furniture, are known as ‘forever chemicals’ due to their persistence in the environment and human bodies.
Exposure to PFAS has been linked to various health concerns, including reproductive issues, developmental delays, and increased cancer risks, according to the United States Environmental Protection Agency. This has led to fears about the potential business liability associated with these chemicals. In response, the German Insurance Association recommended that insurance companies exclude PFAS damages from their policies, including those covering environmental risks.
This move is concerning as it may shift the costs of PFAS contamination to consumers, small businesses, and those seeking legal remedies. The German bank LBBW warned in 2024 that PFAS liabilities could be ‘the most expensive claim in [the insurance industry’s] entire history.’ The potential for widespread litigation is significant, with one lawyer predicting that PFAS litigation could ‘dwarf anything related to asbestos.’
The widespread presence of PFAS in consumer goods and water systems means that exposure is likely to be widespread. The U.S. Geological Survey estimated in 2023 that around 45% of the country’s drinking water could contain at least one PFAS. In response to these concerns, some manufacturers may choose to phase out PFAS, and researchers are exploring innovative methods to clean up PFAS contamination, such as using phosphate salts to break down the chemicals.
Individuals can take steps to limit their personal exposure by opting for PFAS-free alternatives to household items. Monitoring efforts and support for pro-environment policies will be crucial in addressing the issue, given the long-lasting nature of PFAS. Commitment to long-term efforts will be key to mitigating the impacts of these ‘forever chemicals.’
