Polyfluoroalkyl (PFAS) substances are a class of synthetic chemicals used in many clothing items for their water and stain resistant properties. PFAS is in many daily used products such as non-stick pans, firefighting foam and many lightweight, breathable, and waterproof clothes we wear.
Dubbed “forever chemicals” because they don’t break down in nature, PFAS accumulates in the environment and in our bodies with links to cancer, liver damage and reproductive issues, and now, the world is waking up to their costs and risk.
The liability tide is rising fast. In the USA, 3M recently agreed to a $10.3 billion settlement over water contamination claims – a large sum that indicates the problem is serious. Class action law suits against brands using PFAS in consumer fashion goods from cosmetics to rain jackets have the potential to accelerate as scientific evidence mounts across the USA, UK and Europe- the fashion and clothing sector could be one of the industries in the cross hairs of a growing liability tsunami.
The outdoor apparel industry is under scrutiny where PFAS is used for making high performance gear waterproof and durable. Two of my favourite brands (when I can afford them) Patagonia and Fjall Raven are leading the charge towards PFAS free alternatives.
Patagonia, for example, is phasing out all long-chain PFAS across its supply chain, while Fjall Raven now uses a blend of beeswax for its Greenland Wax waterproofing eliminating the need for harmful chemicals.
This shift is not just a fashion fad like so many other trends and it is not just about sustainability, for large fashion brands, this will be about risk mitigation from legal liability claims and potential lawsuits. As consumers become more informed and regulators more trigger happy, large fashion brands may be forced to re-evaluate their supply chains, not only for sustainability but because of potential liability exposure.
iTOO Special Risks was one of the first liability insurers on the African continent to start asking questions about PFAS exposure during our underwriting process. The likelihood of PFAS class actions in Africa is probably lower than the USA or Europe, and so we do not put blanket exclusions on our cover for liability insurance, but there is no doubt that this is a long-term trend that our liability experts are trying to understand by working with global reinsurance partners and understanding chemicals used in different industries.
PFAS is a new frontier of risk for the specialty insurance underwriters with the potential for claims across multiple lines of business such as general or Products Liability, D&O, Environmental Impairment Liability.
The future of fashion may be shaped by the legal courts and compliance as much as much as by fashion designers and marketers. The fashion designers of some of the world’s top brands are already catching onto this trend and the term “Clean Fashion” has been born. Clean fashion is about sustainability, minimizing harm, recyclable product life cycles but also about reputation and risks. Insurers that understand these exposures – and brands that proactively adapt – will the ones that survive in a world where a trail running performance jacket could end up as evidence in a court room. Sexy, maybe not, but liability risk could become a driver of the fashion of the future