What's the next big pollution liability exposure?
This broker's forward-thinking questions illustrate the role insurance can play in building a more sustainable planet.
Insurance brokers who operate in the environmental liability space, and insureds with potential pollution exposures, are now well-versed in the research and risks linked to “forever chemicals.”
Also known as per- and polyfluoroalkyl substances (PFAS or PFASs), these compounds have long been used in manufacturing because they resist heat, oil, stains, grease and water. From cookware to fire-fighting gear, the practical applications are vast, and so the chemicals continue to be popular in the United States despite the science linking them to environmental and health concerns including cancer.
Several nations worldwide are beginning to phase out PFAS. But with a market valued at roughly $28 billion in 2023, PFAS use is in the U.S. continues even as billions of dollars are directed toward litigation and settlements. Among them: $671 million paid by DuPont to settle 3,550 personal injury claims in West Virginia after PFAS were released into the drinking water there, and $10.3 billion paid by 3M to several public water providers in the U.S.
History is still being written about PFAS, but environmental insurance brokers now look to its containment for clues about future potential pollution exposures.
What pollutants are they concerned about? One that comes to mind for Emily Bourdeau, vice president of the environmental practice within NFP’s Specialty division, is 6PPD-quinone, a chemical used to strengthen tires that’s been found to be toxic once it breaks down from wear-and-tear and then washes from roads into nearby waterways.
“Imagine how many tires are on the road right now, constantly degrading and being replaced, put in landfills, wearing off on roads,” Bourdeau said during a recent taping of the Insurance Speak podcast. “How will they get cleaned up? How will the government respond?”
Bourdeau’s forward-thinking questions illustrate the role insurance can play in building a more sustainable planet. Listen to our full conversation above or subscribe to Insurance Speak on Spotify, Apple Music or Libsyn.
See also: