The risk dialog has the potential to create clarity about the risks of PFAS and promote the development of alternatives. This could benefit both insurers and the manufacturers and users of PFAS in the long term.
“In order to achieve the most advantageous negotiation results for our customers, we are continuing to monitor this development closely and will draw appropriate conclusions for the upcoming renewal. Unfortunately, similar constellations have shown that insurers tend to be quick to exclude and are then very difficult to persuade to re-include and take a differentiated view of the risk,” says Josephine Galz-Barthou, Head of Liability at the Hörtkorn Group, on the current discussions and the efforts of insurers.
The German Insurance Association (GDV) has published a new exclusion clause for damage caused by perfluorinated and polyfluorinated alkyl substances (PFAS). In this newsletter, we inform you about the effects on liability insurance cover and show you what the next steps are.
GDV introduces exclusion clause for PFAS
The newly published GDV clause initially excludes PFAS damage from insurance cover. In a second step, insurers can agree individually with customers under which conditions and to what extent damage caused by certain PFAS substances can be included again. The industry sharply criticizes this clause. PFAS, also known as “eternity chemicals”, are contained in many everyday objects and are suspected of being harmful to health. Due to their longevity and the fact that they hardly degrade in the environment, they have been controversial for years. For liability insurers, the risks of PFAS are difficult to calculate, as many of the more than 10,000 different PFAS compounds have not yet been sufficiently researched.
A blanket exclusion of PFAS would be just as wrong as a blanket ban on these indispensable substances. Instead, the insurance industry is calling for a differentiated and sustainable approach to PFAS. The first step in this risk dialog is the non-binding PFAS clause announced by the GDV. This initially excludes PFAS damage from insurance cover, but allows individual agreements for the re-inclusion of certain PFAS risks.
In order to achieve this goal, liability insurers and industry must work closely together and discuss the risks of each PFAS compound in each application. GDV is currently developing a guideline to facilitate the scientific and legal classification of the risks. This guideline will be completed in time for the next renewal round of industrial insurance policies.
The risk dialog has the potential to create clarity about the risks of PFAS and promote the development of alternatives. This could benefit both insurers and the manufacturers and users of PFAS in the long term.
“In order to achieve the most advantageous negotiation results for our customers, we are continuing to monitor this development closely and will draw appropriate conclusions for the upcoming renewal. Unfortunately, similar constellations have shown that insurers tend to be quick to exclude and are then very difficult to persuade to re-include and take a differentiated view of the risk,” says Josephine Galz-Barthou, Head of Liability at the Hörtkorn Group, on the current discussions and the efforts of insurers.
General information
What are PFAS? PFAS (per- and polyfluorinated alkyl substances) are a group of chemicals used in many industrial and consumer products. They are known for their resistance to water, dirt, grease and oil as well as their high resistance to heat and cold.
Health risks Some PFAS compounds are suspected of being harmful to health. Studies have shown that exposure to certain PFAS can lead to negative health effects such as cancer, fertility problems and damage to the immune system.
Environmental pollution PFAS are persistent chemicals that hardly degrade in the environment. They have been detected in water, air, fish and soil worldwide and can accumulate in the human body over long periods of time.
Regulatory measures Both the EU and US authorities have now taken measures to reduce exposure to PFAS, e.g. by banning their use in certain products or by introducing drinking water standards.
Current research Research on PFAS is still ongoing. Scientists are working to develop better methods for detecting and measuring PFAS and strategies for removing these chemicals from drinking water.
Further information and complete collection of clauses:
The GDV provides the complete exclusion clause as well as further background information on the PFAS issue on its website. You can find the information under the following link:
