Environmental Liability
Is
PFAS The Next Asbestos?
Insurance broker outlines steps operators can take to prepare for legal actions
By Michael Rayo
Per- and polyfluoroalkyl substances( PFAS), commonly referred to as“ forever chemicals,” have rapidly evolved from a niche environmental concern into one of the most significant emerging risks in the insurance marketplace.
Insurers Opting Out
In recent years, carriers have responded aggressively by introducing broad, standardized exclusions that now leave many businesses exposed in ways they may not fully understand. For brokers, risk managers and business owners alike, PFAS is no longer a theoretical issue. It is an active underwriting concern and increasing as a major gap in
PHOTO CREDIT: show999 / iStock coverage. Laundry operators must understand how PFAS impacts liability and pollution policies, and how it intersects with real-world operations such as chemical handling, wastewater discharge and material processing. This is especially true in industries like the commercial laundry sector, where exposure is often indirect, misunderstood and embedded in everyday operations.
The insurance industry has moved quickly to limit its exposure to PFASrelated claims. A key turning point emerged in June 2023 when the Insurance Services Office introduced standardized PFAS-exclusion endorsements across multiple lines of coverage, including Commercial General Liability, umbrella and excess liability, and Business Owners Policies. These endorsements have become standard across most carriers, with many using ISO forms or developing their own proprietary exclusion forms. As a result, PFAS exclusions are now nearly universal across liability policies. Practically speaking, this means that what many insureds believe to be broad liability coverage no longer applies to one of the fastest-growing environmental exposures in the marketplace.
There is little room for interpretation because these exclusions are meant to be broad. They remove coverage for bodily injury arising from PFAS exposure, property damage caused by contamination, and claims tied to the design, manufacture, distribution or use of PFAS-containing products. They also eliminate coverage for environmental testing, monitoring and cleanup costs, even when negligence is alleged. Unlike traditional pollution exclusions, which have historically been debated in courts and sometimes interpreted narrowly, PFAS exclusions are written specifically to eliminate ambiguity. Even when a business is not intentionally using PFAS or where exposure is incidental, coverage is typically denied. This represents a fundamental shift in how environmental risk is treated under standard liability policies.
Limited Protection Options
While PFAS exposure is often associated with heavy industry, chemical manufacturing or firefighting foam, the commercial laundry industry presents a unique and often overlooked exposure profile. Commercial laundries routinely process textiles treated with PFAS-based coatings, including stain-resistant uniforms, water-resistant garments, industrial fabrics and hospitality and healthcare linens. During standard washing and finishing processes, PFAS compounds can leach into
24 Textile Services • May 2026