Joe Saka Provides Overview of PFAS Crackdown on Insurance Market
Joe Saka’s presentation during Riskworld – the Risk & Insurance Management Society Inc.’s annual conference – was highlighted in the Business Insurance article “Federal PFAS Changes Open Floodgates to Liability, Exclusions.”
Business Insurance reported Joe was presenting “two weeks after two major crackdowns on PFAS by the U.S. Environmental Protection Agency.” Joe said these actions will affect “many industries and their insurance programs, both current and historic.”
Additionally, the publication wrote that in April 2024 “the EPA established safe levels of so-called forever chemicals in drinking water and designated a pair of widely used industrial chemicals as hazardous substances under the country’s Superfund program aimed to mitigate chemical waste at historical sites.”
Commenting on this development, Joe said, “The Superfund changes, in particular, will change the risk landscape… We’re anticipating new investigations, new monitoring, new consideration of what remediation is going to be required.” He added, “If actionable levels are found at certain sites it could also lead to reallocation among potentially responsible parties.”
The article closes by noting Joe stated, “While the [PFAS] issue has its place in general liability policies, emerging environmental-specific policies and event D&O coverages could be triggered.” He went on to say these developments will “require companies to dig into historic policies that may be in storage or that may be missing… A lot of companies are going to throw in the towel and say, 'I don’t know where it is'. I would say that’s a big mistake because when you think about it, you’re dealing with an investment of several thousands at the potential risk of billions in liability.”
