Case Study

Securing comprehensive PFAS environmental coverage for a manufacturing facility acquisition

Marsh secured $25M PFAS coverage for a strategic acquisition, enabling a deal close with broader environmental protection and lower cost.

The challenge:

A global manufacturing company focused on sustainable construction and material innovation identified a strategic acquisition opportunity: purchasing a facility from one of its suppliers that was exiting the business. The facility was critical to supporting the client's core division and its broader North American growth strategy.

The site carried meaningful environmental risks specifically, pre-existing pollution conditions and potential PFAS exposure. PFAS (per- and polyfluoroalkyl substances) are widely perceived in the marketplace as difficult or even impossible to insure given their forever chemical designation, presenting a potential deal-stopper. The transaction could not close without a credible risk transfer solution that addressed this exposure directly. Resolving the environmental insurance question was the final outstanding item in the purchase and sale agreement.

The solution:

A market-driven approach to PFAS coverage

Marsh's environmental insurance specialists drew on deep market knowledge and program design expertise to engineer a solution that others in the market had deemed unavailable. The team's central conviction was clear: with the right structure and the right carriers, PFAS exposure is insurable.

The first step was diagnosing why the incumbent carrier's quote fell short — not just that it contained a PFAS exclusion, but why that exclusion existed and which underwriters in the market had both the appetite and the technical framework to remove it. That required going beyond the traditional carrier set. Marsh's specialists identified a tier of newer entrants in the environmental insurance space — carriers that had entered the market within the last three to five years precisely because they were built to underwrite the complex, evolving exposures that legacy markets avoid.

With that knowledge, Marsh structured a program designed to deliver PFAS coverage as a baseline requirement, not an afterthought. The team designed a two-layer pollution legal liability (PLL) framework to cover the full scope of pre-existing and unknown environmental conditions at the site, then brought it to market with the carriers best positioned to provide it. The competitive process that followed resulted in a placement that delivered broader coverage, better terms, and a lower premium than the client believed possible.

Primary layer: $15 million limit with a $100,000 deductible
Excess layer: $10 million limit
Total program limit: $25 million (covering pre-existing pollution conditions and PFAS exposure at the acquired facility)
Policy term: 10 years

The purchase and sale agreement was added as an insured contract, directly supporting the transaction's legal close.

The winning carrier offered not only the removal of the PFAS exclusion, but also a higher total limit at a lower deductible — and at a premium $75,000 below the initial market indication — all within the client's budget.

PFAS coverage is not out of reach. The environmental insurance market has evolved, and carriers with the appetite and expertise to underwrite these risks exist. Finding them requires deep market insights and a disciplined multi-market placement strategy.

The results:

A deal closed, a risk transferred, a misconception corrected

The Marsh-placed PLL policy resolved the final outstanding issue in the purchase and sale agreement, enabling the transaction to close on schedule. The client was able to proceed with the acquisition with confidence, knowing that the environmental liabilities of the facility, including PFAS-related risks, were transferred to a well-capitalized insurance program.

The outcome exceeded the client's expectations on every dimension: higher limits, broader coverage, lower deductible, and meaningful cost savings versus the initial market indication. Rather than accepting a reduced-coverage policy or abandoning a strategically important acquisition, the client obtained a $25 million program that directly supports its long-term growth objectives in North America.

This engagement demonstrates a broader principle that Marsh brings to every environmental insurance placement: market insights and placement expertise matter. The perception that PFAS is uninsurable is a market misconception — one that Marsh is uniquely positioned to correct on behalf of its clients. By knowing which carriers have the appetite, structuring programs competitively, and driving genuine market competition, Marsh can help secure coverage that may seem unavailable and deliver measurably better terms in the process.

Harmful emissions into the atmosphere causing global warming. carbon footprint

Article

Securing comprehensive PFAS environmental coverage for a manufacturing facility acquisition

The challenge:

The solution:

A market-driven approach to PFAS coverage

The results:

A deal closed, a risk transferred, a misconception corrected

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