How PFAS Influence Environmental Liability Risks in Construction Projects

Dennis Willette, Senior Vice President and Head of Environmental at Westfield Specialty, recently shed light on the current landscape of environmental liability in the construction industry. He highlighted the relatively stable condition of the environmental liability market, noting minor tightening of terms in specific sectors and stable rates overall. Mold-related claims remain a significant and steady issue, while faulty workmanship, potentially leading to pollution claims, continues to warrant careful monitoring.

Regarding per- and polyfluoroalkyl substances (PFAS), Willette described these contaminants as rapidly evolving regulatory concerns. While he stated that most contractors fall at the lower end of the risk spectrum, particular segments—such as contractors installing or maintaining chemical-based fire suppression systems—face heightened exposure. Many such fire suppression products historically contained PFAS, prompting insurers to be cautious, with some implementing specific exclusions in their pollution liability policies.

Willette emphasized the importance of environmental liability coverage for contractors, highlighting misconceptions that certain trades do not require such policies. He illustrated this with practical examples, including the scenario of a street contractor accidentally blocking a sewer line, causing significant pollution damage that general liability policies typically exclude. Willette noted that contractual requirements increasingly mandate pollution and professional coverage, suggesting heightened awareness of environmental risks among project stakeholders.