As litigation and regulatory scrutiny surrounding per- and polyfluoroalkyl substances (PFAS) intensifies, insurers are tightening their underwriting practices, particularly in sectors exposed to these substances. Many insurance providers are instituting coverage exclusions on general and products liability policies, especially for industries such as manufacturing and real estate. According to experts, the rise in lawsuits and recent environmental regulations, including the EPA’s strict limits on PFAS in drinking water, are significantly impacting the market. Insurers are increasingly reluctant to cover businesses associated with PFAS exposure, treating such risks as comparable to insuring a “burning building.”
