Insurance companies are increasingly dropping liability coverage for PFAS-related risks, leaving small businesses vulnerable to costly lawsuits.
Ken Armstrong reports for The Lever.
In short:
- Acadia Insurance has stopped covering claims related to PFAS exposure, affecting small businesses like Elizabeth Mitchell’s nonprofit in Connecticut.
- PFAS, found in many household products, are linked to serious health risks and are prevalent in water supplies, leading to numerous lawsuits.
- Insurers are using existing pollution exclusions and new policy provisions to limit their financial exposure to PFAS claims.
Key quote:
“Certainly large portions of the insurance industry have decided that they’re not interested in selling liability insurance coverage for PFAS.”
— John Ellison, attorney at Reed Smith
Why this matters:
The exclusion of PFAS coverage leaves small businesses at financial risk from potential lawsuits, while also denying victims compensation for exposure-related health issues. As PFAS regulations tighten, the financial burden on businesses and communities is likely to increase.
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