As the legal implications surrounding per- and polyfluoroalkyl substances (PFAS) continue to evolve, businesses, particularly those within the food and beverage industry, are grappling with related challenges daily. A total of twelve states have now passed legislation regulating PFAS, each of which explicitly targets the food industry. Federal involvement has also come into play, as the Environmental Protection Agency (EPA) has recently issued a final rule restricting the use of certain long-chain PFAS in food packaging.
The influence of PFAS legislation is not confined to the regulation of the food and beverage industry alone. Indeed, PFAS litigation is opening a new front, with the plaintiffs’ bar asserting PFAS-based fraud and misrepresentation claims against companies. It’s clear that companies need to be able to understand the scope and potential implications of their PFAS coverage.
One method of understanding this is for companies to undertake a thorough audit of their insurance policies. To determine the potential extent and impact of PFAS coverage, companies should carefully analyze the wording of their policies, and any specific exclusions, limitations or definitions that may apply. The results of this audit could help them identify any areas of exposure, ensuring they are adequately prepared should they find themselves facing a PFAS-related legal dispute.
JD Supra provides extensive further insight into this pressing issue, discussing how organizations can strategize to ensure they have the necessary coverage to potentially safeguard against PFAS-related liabilities. This is a critical aspect of corporate risk management, as companies seek to protect themselves from both current and future liabilities associated with PFAS exposure.