A first-of-its-kind federal court ruling involving PFAS exposure has provided insurers with a potentially significant new defense to coverage claims arising from occupational exposure to so-called “forever chemicals.”
An Ohio federal judge ruled that Admiral Insurance Company had no duty to defend or indemnify protective equipment manufacturer Fire-Dex LLC in lawsuits brought by firefighters who allege they developed cancer from exposure to per- and polyfluoroalkyl substances (PFAS) contained in firefighting turnout gear. The court found that an occupational disease exclusion in Fire-Dex’s commercial general liability policy applied to the claims.
The decision could have implications beyond PFAS litigation because of the court’s broad interpretation of policy language excluding bodily injury to “any individual” resulting from an occupational or environmental disease. The ruling also highlights the importance of carefully evaluating policy exclusions as PFAS-related litigation and coverage disputes continue to develop.
Karin Aldama, an insurance coverage attorney at Gallagher & Kennedy, was interviewed by Law360 and discussed the court’s interpretation of the occupational disease exclusion. While noting that the court’s analysis was grounded in the language of the policy, Aldama observed that the ruling departed from the common practice of narrowly construing insurance policy exclusions.
Aldama also noted that the decision could have implications well beyond PFAS claims, particularly for policies containing exclusions that use similarly broad language such as “any individual.”
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Karin Aldama handles complex commercial and business litigation and insurance coverage matters for mid-size to Fortune 500 companies in hospitality, finance, utilities, aerospace, and semiconductors. She helps corporate clients and governmental entities find insurance programs that meet their needs and obtain the coverage to which their policies entitle them.