Summary:  A new type of exclusionary endorsement is being made available under the ISO program to address exposures of PFAS chemicals. This is an early introduction to the filing, as the endorsements will not be available until at least May, 2023.

PFAS is the abbreviation for perfluoroalkyl and polyfluoroalkyl substances, which are described by the National Institute of Environmental Health Sciences (NIEHS) as a "large, complex, and ever-expanding group of manufactured chemicals that are widely used to make various types of everyday products." According to the Interstate Technology Regulatory Council (ITRC), some industries and products that incorporate the use of PFAS include, but are not limited to, automobiles, pesticides, cosmetics, food processing, textiles, furniture and household products. While potential health impacts that exposures to PFAS could lead to are still being researched and thus remain uncertain, they have come under scrutiny due at least in part to their environmental presence, because they: 

• do not break down in the environment,
• can move through soils and contaminate drinking water sources,
• build up (bioaccumulate) in fish and wildlife.

The CDC has more information on PFAS under their National Biomonitoring Program, contained in this Fact Sheet. The substances are found in rivers and lakes, and also in many types of land and water animals. .

This discussion provides an analysis of the umbrella PFAS exclusion endorsement, CU 34 54, and the excess liability exclusion endorsement, CX 21 97 The underlying CGL exclusion endorsements were previously introduced and are discussed here.

CU 34 54 Exclusion – Perfluoroalkyl And Polyfluoroalkyl Substances (PFAS)

C.   The following definition is added to the Definitions Section:

"Perfluoroalkyl or polyfluoroalkyl substances" means any: 

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1.  Chemical  or  substance  that  contains  one  or more  alkyl  carbons  on  which  hydrogen  atoms have  been  partially  or  completely  replaced  by fluorine atoms, including but not limited to:

1. Polymer, oligomer, monomer or nonpolymer chemicals and their homologues, isomers,    telomers,    salts, derivatives, precursor chemicals, degradation products or by-products;
2. Perfluoroalkyl    acids    (PFAA),    such    as perfluorooctanoic acid (PFOA) and its salts, or   perfluorooctane   sulfonic   acid   (PFOS) and its salts;
3. Perfluoropolyethers (PFPE);
4. Fluorotelomer-based substances; or
5. Side-chain fluorinated polymers; or

2.   Good     or     product,     including     containers, materials,   parts   or   equipment   furnished   in connection  with  such  goods  or  products,  that consists   of   or   contains   any   chemical   or substance described in Paragraph C.1. 

Analysis:

CU 34 54 is an optional endorsement. In brief, this is a broad exclusion endorsement precluding coverage for bodily injury, property damage and personal and advertising injury related exposures associated with the PFAS definition, including any loss, cost or expense arising out of abating, testing for, monitoring, cleaning up, or other related activities, of PFAS by any insured or by any other person or entity.