Microplastic Pollution: Liability Issues and Insurance Implications

The ubiquitous presence of microplastics raises numerous concerns for the environment and human health. As scientific studies document microplastics’ harmful effects, liability issues for businesses contributing to such pollution may arise.

This article examines the impact of microplastics on environmental and human health as well as potential business liability issues associated with such pollutants, emphasizing the importance of risk mitigation strategies.

What Are Microplastics?

Microplastics are small pieces of plastic that measure less than 5 millimeters (0.2 inches) long. They originate from larger pieces of plastic that have degraded and commercial product development. Sources include synthetic textiles, tires, dust and personal care products. Microplastics are divided into two categories:

  • Primary microplastics are small plastic particles designed for commercial use that are directly released into the environment. They include microfibers shed when clothes are laundered, nurdles used in manufacturing or microbeads in cosmetic products.

  • Secondary microplastics come from the breakdown of larger plastic items such as water bottles and plastic bags.

Microplastics’ Impact on the Environment

Microplastics are prevalent in the environment, and their effects on marine and land ecosystems are being studied. Their small size makes them digestible, inhalable and hard to clean up. Microplastics have been found across oceans, rivers, streams and even in arctic ice. Their presence is not limited to water environments. They can also be found in soils and in the air.

Due to their existence in the environment, microplastics can enter the food chain. For example, small animals can mistake them for food and ingest them; larger animals then consume those animals. Eating microplastics can cause animals to feel full and stop eating, which deprives them of essential nutrients. Additionally, these pollutants can contain toxic chemical additives that can impact animals’ health.

Scientists have been studying the effect of microplastics in the soil, as terrestrial ecosystems can also become polluted. Plastic waste, tire breakdown, and microplastics’ transportation via air and water can contribute to their presence on land. Like in water, microplastics in the soil can enter the food chain as small animals, such as earthworms, ingest them. This can disrupt the symbiotic relationship of small organisms and affect the land’s fertility, which can impact plant life.

Microplastics’ Impact on Human Health

Microplastics are also finding their way into humans. Whether they are inhaled, eaten with food or swallowed with contaminated water, these pollutants have been found in human blood, tissue, placentas, stool and breast milk. Microplastics can potentially cause adverse health effects since they may be composed of harmful additives (e.g., flame retardants or phthalates) or have the ability to absorb toxins from the environment (e.g., pesticides).

Although research in this area is ongoing, there are indications that microplastics in the body can interfere with brain development in children and hormonal functions. They may also cause a chronic inflammatory response that could lead to heart disease, neuropsychiatric disease or cancer.

Liability and the Insurance Implications of Microplastics

Due to microplastics' risks and environmental and health impacts, organizations that contribute to microplastic pollution may face liability claims. Determining liability can be complex since microplastics come from a variety of sources, but the issue has still raised concerns in the insurance industry. Entities involved in the manufacturing, distribution, disposal or use of microplastics should be aware of the potential liabilities they may face.

For instance, lawsuits may arise, alleging bodily injury due to the toxicity of microplastics, property damage to infrastructure or environmental harm requiring remediation. Additionally, businesses may face claims related to public nuisance and regulatory noncompliance; they may also suffer reputational damage due to their association with microplastics. Directors and officers may be subject to shareholder claims alleging the organization’s leadership breached their duties regarding proper microplastic management.

Businesses must consider which insurance policies may be impacted by these risks and ensure they have adequate coverage. Depending on the circumstances, policies such as general liability, product liability, pollution liability, directors and officers insurance, or employer liability insurance may respond to claims related to microplastics.

It is essential to have a thorough knowledge of these types of coverage, as policies may vary with regard to their triggers, limits and exclusions. This information can help companies assess their needs and build a comprehensive insurance portfolio as part of their risk management plan.

Mitigating Business Liability Concerning Microplastics

As the issue of microplastics gains increased attention, businesses can take proactive measures, such as the following, to mitigate their potential liability and demonstrate their commitment to environmental responsibility:

  • Eliminate or reduce plastic use. Eliminating or reducing plastic use can help organizations avoid or mitigate the risks that microplastics present.

  • Implement environmental policies. Instituting environmental protection policies and practices, such as recycling, can reduce the amount of microplastics in the environment.

  • Stay informed. As scientific studies continue, new risks and mitigation strategies will develop. Keeping up to date with the latest best practices can help businesses reduce their overall risks.

  • Collaborate with stakeholders. Working with suppliers, customers and regulators can help businesses find creative solutions to eliminate or reduce microplastic use while meeting their constituents’ needs and complying with applicable laws.

  • Review insurance. Ensuring insurance coverage adequately addresses potential liabilities is an essential aspect of risk management.

Conclusion

As microplastics continue to emerge as a threat to the environment and human health, businesses must take proactive steps to reduce their potential liabilities.

Contact us today for more risk management guidance.


This Risk Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2023 Zywave, Inc. All rights reserved.

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