There are warnings that the issues around forever chemicals and particularly the liability risks are set to be one of the defining issues of the year ahead.

In its predictions for the year law firm DAC Beachcroft  has said that the coming 12 months will see a growing focus on the regulation and use of PFAS commonly called forever chemicals.

Toby Vallance, partner, at DAC Beachcroft United Kingdom explained: “As PFAS become subject to increased regulation in the United States, European Union and UK, we anticipate more related injury and environmental claims.

“Recent technological breakthroughs for the destruction of PFAS have provided a glimmer of hope for addressing the ‘forever’ impact of the chemicals from an environmental standpoint, notwithstanding their bio-accumulative nature. These removal treatments come at considerable cost, potentially borne by manufacturers responsible for environmental contamination and their insurers.”

He continued: “In the United States, settlements totalling nearly $11 billion have been agreed to resolve one manufacturer’s liability for PFAS contamination in drinking water and specific environmental claims.

“For injury-related actions, despite the first bellwether trial for the Aqueous Film-Forming Foams multidistrict litigation recently being postponed, we expect to see further injury-related PFAS claims in the United States and beyond.

“In France, activist groups have announced they are preparing to bring an action on behalf of citizens alleging injury from PFAS contamination caused by chemical and petrochemical manufacturing in the Rhone valley. In the UK, two leading claimant firms announced investigations into possible environmental and injury claims caused by PFAS contamination in North Yorkshire.”

The law form said PFAS contamination has become a nationwide challenge in Sweden, with traces found in groundwater near airports, fire training sites, and industrial areas.

“Cleanup costs are high and long-term, yet many insurers are starting to exclude PFAS from coverage, leaving municipalities, businesses, and property owners exposed to potentially large liabilities.

The trend has intensified following the 2023 Swedish Supreme Court PFAS-case ruling, which confirmed that elevated PFAS levels in residents’ blood can constitute compensable harm. This landmark case has set a precedent that heightens pressure on insurers, especially as PFAS continues to be detected at multiple locations across the country. In turn, this is expected to drive demand for insurance solutions that share the financial burden while supporting responsible environmental remediation, making PFAS a persistent and evolving risk for the Swedish insurance sector.

While PFAS will be a major liability issue so will the growing pollution by microplastics.

“Microplastics are a significant emerging environmental and public health risk,” Vallance added. “Businesses involved in manufacturing, packaging, and food production could see heightened scrutiny, with underwriters demanding more rigorous risk disclosures and sustainability practices.

“Regulatory developments, such as the EU microplastics regulation, may drive insurers to adjust policy wordings and exclusions.”

He warned: “Litigation risk will only grow as public awareness evolves, leading to class actions and reputational damage. While litigation in this area has largely focused on greenwashing and public nuisance, the next steps would be personal injury claims, which is where the traditional issues around causation start to arise. The industry should effect a wide review of exposures now to understand the long-tail risks microplastics present.”