Their ability to resist heat, moisture and oil made them useful, but those same qualities mean they don’t break down easily in the environment or the human body.

With new regulations rolling out and insurers tightening their stance, PFAS is becoming an increasingly important area of focus for Australian food and beverage businesses.

At PNO, our priority is to help you stay ahead of emerging risks with clarity, care and practical advice. In this article we outline the regulatory changes, what they mean for your business, and the steps you can take to strengthen your risk position.

What are the changes in regulations?

As of 1 July 2025, Australia has banned key PFAS chemicals including PFOA, PFOS and PFHxS. This includes restrictions on import, manufacture and use. While Food Standards Australia New Zealand (FSANZ) reports that dietary PFAS levels are generally low, local contamination can still occur through packaging, equipment, water and soil.

For food and beverage businesses, this means greater scrutiny across supply chains and legacy operations, and a renewed need for transparent documentation and proactive compliance.

How insurance markets are responding

Insurers are moving quickly to manage their exposure to PFAS‑related claims. We’re now seeing explicit PFAS exclusions applied across General Liability, Product Liability and Environmental Liability policies.

These exclusions often refer to broad chemical definitions, meaning thousands of PFAS compounds may automatically fall outside coverage, even if they aren’t widely known or used today.

The impact is evident, adopting a proactive strategy is essential to ensure PFAS exposure does not remain unaddressed within an uninsured gap.

Why PFAS matters to food and beverage businesses

PFAS risks are practical. They can sit within everyday operations, often without businesses realising. These include:

• Packaging exposures – Grease‑resistant wrappers, takeaway containers and particular coatings may be phased out or restricted. This creates both compliance considerations and potential liability issues.
• Legacy contamination – Older buildings, equipment, sealants and firefighting foams may contain PFAS. Over time, this can influence soil, water and operational safety.
• Reputation and Environmental, Social, and Governance (ESG) pressures – Even minor PFAS exposure can raise questions from customers, regulators and stakeholders. Managing it well is important for maintaining trust and supporting ESG commitments.

Understanding your PFAS exposure across packaging, processes, land, equipment and suppliers is essential.

How to strengthen your risk position

A proactive, informed approach is the best way to reduce PFAS‑related exposure. PNO can support you through steps such as:

• Mapping your exposure – Identifying PFAS risks across packaging, suppliers, legacy sites and processing lines.
• Reviewing policy wordings – Ensuring you understand exclusions, definitions and any available carve‑backs, and where insurance gaps may exist.
• Strengthening documentation – Keeping supplier declarations, Safety Data Sheets and site history records on file to demonstrate strong risk governance.
• Transitioning to PFAS‑free alternatives – Working with suppliers to source PFAS‑free materials and confirming certification.
• Exploring environmental liability options – Where available, specialist cover may offer limited protection for sudden and accidental events.

These measures help you meet regulatory expectations, strengthen insurer confidence, and build resilience across your operations.

The bottom line

PFAS regulation and insurance responses are evolving quickly. For Australian food and beverage businesses, this means heightened exposure from both regulatory change and tightening insurance markets.

By gaining visibility across your supply chain, strengthening documentation, and reviewing your insurance program with PFAS front‑of‑mind, you can reduce risk and build resilience ahead of future changes.

At PNO, we’re here to help you navigate this emerging challenge. If you’d like support reviewing your insurance program or understanding your PFAS exposure, please reach out to our Food & Beverage specialist, Matthew Summers, at msummers@pno.com.au or call (03) 9536 7310.