In October 2025, the AGC chemical plant in Lancashire, England, became a global concern after detecting PFAS (per- and polyfluoroalkyl substances) emissions into the surrounding environment, particularly the River Wyre. These compounds are widely known as “forever chemicals” due to their highly biodegradable nature and potential long-term impacts on human health and the ecosystem. This case served as a reminder to the industrial sector that every EPC (Engineering, Procurement, and Construction) project involving high-risk chemicals must have a comprehensive risk management strategy.
For companies engaged in EPC projects, incidents like this are more than just environmental issues. Financial losses, lawsuits, and even a tarnished reputation are real risks that can threaten business continuity. This is where environmental pollution insurance plays a crucial role as a strategic solution to protect a company’s assets, cash flow, and reputation.
With experience assisting with various strategic projects, L&G Insurance Brokers is ready to help companies design effective insurance programs. Through comprehensive policy solutions, ranging from coverage for sudden pollution and gradual pollution to third-party claims, L&G ensures every EPC project is protected from potentially significant environmental risks.
For further information and consultation regarding your EPC project insurance needs, contact L&G Insurance Brokers at +62 811‑8507‑773.
Contamination CasePFASat the AGC Factory
In October 2025, the AGC chemical plant in Lancashire, England, came under scrutiny after environmental authorities discovered significant PFAS emissions into the River Wyre. PFAS, known as forever chemicals, is highly resistant to degradation, allowing it to accumulate readily in the environment and living organisms. This discovery raises serious public health concerns, including potential hormone disruption, organ damage, and long-term cancer risks.
According to local regulators, the AGC plant releases approximately 800 kg of PFAS annually, some of which enters surrounding water bodies and soil. This has contaminated the River Wyre, threatening biodiversity, drinking water supplies, and local economic activities, including fishing and agriculture. This incident highlights the potential for high pollution risks for large industrial projects, including EPC projects, even in countries with stringent environmental regulations like the UK.
In addition to the ecological impacts, the case also created legal and financial pressure on the factory’s contractors and operators. Local authorities increased oversight and demanded that the company clean up its environment.remediation), while surrounding communities could potentially file third-party lawsuits. All of these cleanup, mitigation, and litigation costs can reach tens of millions of dollars, highlighting the real risks EPC projects can face if they are not properly insured.
This incident serves as an important lesson for EPC project developers that pollution risks should not be taken lightly. Companies need to anticipate the possibility of hazardous chemical contamination, design effective mitigation measures, and ensure appropriate insurance protection is in place to mitigate financial and reputational losses.
To ensure your EPC project is protected from pollution risks like PFAS, L&G Insurance Brokers can help design a comprehensive insurance program. Call +62 811-8507-773 for an in-person consultation.
PFAS– Environmental and Health Threats
PFAS, orper- dan polyfluoroalkyl substances PFAS are a group of synthetic chemical compounds widely used in industries ranging from waterproof coatings and industrial chemicals to electronics and specialty chemical manufacturing processes. PFAS are primarily chemically stable and resistant to environmental degradation, earning them the nickname “forever chemicals.” Unfortunately, this stability makes them persistent in the environment and the human body, making them extremely difficult to remove after contamination.
Environmental impact:
- PFAS accumulates in water, soil, and sediments, affecting local flora and fauna.
- Contaminated aquatic organisms can spreadPFASto the food chain, including humans.
- Ecological impacts can last for years, making it difficult to rehabilitate affected areas.
Human health impacts:
- Long-term exposure is associated with hormonal disruption, a weakened immune system, thyroid disorders, and the risk of certain cancers.
- High concentrations of PFAS in drinking water and food are a public health concern, as has been the case around the River Wyre.
Relevance for EPC projects:
- EPC projects that handle hazardous chemicals or industrial construction are at high risk of PFAS contamination incidents.
- This risk is gradual pollution, which means it occurs slowly but accumulatively, in contrast to sudden pollution (sudden pollution), so that mitigation costs can be very large if not anticipated from the start.
- Contractors and investors need to consider financial protection through pollution insurance, which covers remediation costs, third-party claims, and reputational damage.
The case of the AGC Plant in the UK highlights that managing PFAS risks is not simply about regulatory compliance but also a vital asset protection strategy for EPC projects. Through environmental pollution insurance, companies can safeguard cash flow, reputation, and operational sustainability in the event of a hazardous chemical contamination incident.
Impact of Contamination on EPC Projects
PFAS contamination, such as that which occurred at the AGC Plant in the UK, is not merely an environmental issue. For EPC (Engineering, Procurement, and Construction) projects, such incidents can threaten the project’s financial, legal, and reputational viability. The impacts can be divided into several key aspects:
- Legal and Regulatory Impacts
- EPC contractors may be held legally liable for pollution, especially if the incident occurs due to negligence in chemical management.
- In the UK, environmental regulations require companies to carry out cleanups to strict standards, with oversight from local environmental authorities.
- Companies may face third-party claims from the public or directly affected parties, which increases financial risk.
- Financial Impact
- Environmental remediation costsPFASvery high because of its persistent and difficult to remove nature.
- In addition, EPC projects can experience operational delays, delayed contracts, and losses due to fines or regulatory sanctions.
- Legal claims from third parties, including communities or business partners, can create significant additional financial burdens, which can disrupt the project’s cash flow.
- Impact of Reputation
- Pollution incidents can tarnish a company’s image, affecting the trust of investors, clients and stakeholders.
- In an era of high transparency and strict ESG regulations, a company’s reputation is a strategic asset that must be maintained.
- A bad reputation can have long-term consequences, including losing future EPC project tender opportunities.
The PFAS case at the AGC UK plant serves as a crucial lesson: EPC projects must anticipate environmental risks from the outset, not only from a legal compliance perspective but also from a financial and reputational risk management perspective. Pollution insurance is an effective solution to cover these risks, including cleanup costs, third-party claims, and potential losses due to a tarnished reputation.
To ensure your EPC project is protected from the risk of hazardous chemical contamination, L&G Insurance Brokers can design an appropriate and comprehensive pollution insurance program. Call +62 811‑8507‑773 for a consultation.
- The Role of Pollution Insurance in EPC Projects
In the context of EPC projects, environmental pollution risks can arise suddenly (sudden pollution) or slowly (slow pollution).gradual pollution), such as the PFAS case at the AGC Plant in the UK. Without proper protection, contractors or project owners face significant financial losses, lawsuits, and reputational risks. This is where pollution insurance plays a key mitigation tool.
Pollution Insurance Main Coverage:
- Sudden & Accidental Pollution:
- Covers pollution incidents that occur suddenly and unexpectedly, such as chemical spills, tank leaks, or damage to chemical installations.
- Provides immediate protection against remediation costs and third-party legal liability.
- Gradual Pollution:
- Dealing with pollution that occurs slowly and cumulatively, such as accumulationPFASin the surrounding environment.
- Provide financial assurance for long-term mitigation, including cleanup and ecosystem restoration costs.
- Third Party Liability:
- Covering claims from the public, regulators, or third parties affected by pollution.
- Reduces litigation risk and helps maintain company cash flow.
Strategic Benefits for EPC Projects:
- Financial Protection:Reduce the burden of unexpected costs due to cleanup, legal penalties, or third-party claims.
- Regulatory Compliance:Ensuring projects remain in accordance with environmental legal standards and international regulations.
- Reputation & Investor Trust:Strengthening the company’s position in large project tenders by demonstrating professional and responsible risk management.
Through pollution insurance, EPC companies can anticipate complex risks and maintain operational continuity even in the event of a pollution incident. The PFAS case in the UK is clear evidence that this protection is not merely a formality, but a crucial strategy for project sustainability and the protection of company assets.
To design the optimal pollution insurance program for your EPC project, L&G Insurance Brokers is ready to help. Call +62 811‑8507‑773 for a consultation and tailored solutions for your project.
The Role of a Professional Insurance Broker
In EPC projects, particularly those facing environmental pollution risks such as PFAS, the role of a professional insurance broker is crucial. Brokers act as strategic partners for companies, helping identify risks, design protection programs, and ensure policies are aligned with project needs.
The main functions of an insurance broker in an EPC project:
- Project Specific Risk Identification:
- Each EPC project has unique characteristics, ranging from the types of chemicals used, construction location, to potential impacts on the environment and surrounding communities.
- Brokers help assess pollution risk levels that may arise and their financial scale, so that the company can determine the appropriate insurance limits and coverage.
- Optimal Insurance Program Design:
- Professional brokers help organize polis pollution insurance which includes sudden & accidental pollution, gradual pollution, and third party liability.
- Adjustments to clauses, limits, deductibles and additional coverage are made so that protection according to project risk exposure.
- Negotiation with Insurance & Claims Assistance:
- Brokers act as intermediaries between companies and insurers, ensuring competitive premiums and favorable policy terms.
- In the event of a pollution incident, the broker provides full support in the claims process, expediting the disbursement of remediation funds, and reducing the risk of litigation.
- Mitigation and Compliance Strategies:
- In addition to financial protection, brokers also help companies develop environmental risk mitigation strategies, ensuring projects remain compliant with local and international regulations.
With the guidance of professional brokers such as L&G Insurance Brokers, EPC companies can navigate the complex risks of hazardous chemical projects, maintain cash flow, and protect their reputations in the eyes of investors and stakeholders.
Conclusion
Contamination cases PFAS The incident at the AGC UK Plant is an important lesson for all companies involved in EPC projects. This incident shows that the risk of contamination by hazardous chemicals can have serious consequences, not only to the environment and public health, but also to corporate finance, law, and reputation. Given the complexity of these risks, planned risk management is an essential part of any EPC project strategy.
Strategically, EPC companies should integrate environmental risk management from the planning stage through project implementation. This includes identification of potential pollution risks, technical mitigation in the field, and financial protection through pollution insuranceThe right insurance policy will cover remediation costs, third-party claims, and potential reputational damage, ensuring the project remains operational and the company’s cash flow is maintained. It’s also crucial to engage a professional insurance broker who can tailor the coverage program to the project’s characteristics and local and international regulations.
With this approach, companies not only minimize losses due to pollution incidents, but also demonstrate commitment to sustainability, compliance and social responsibility. To ensure your EPC project is fully protected and reduce the financial risks that may arise from environmental contamination,L&G Insurance Brokers are ready to help design an optimal insurance program that suits your project needs.
Contact L&G Insurance Brokers at +62 811‑8507‑773 for professional consultation and the best insurance solutions for your EPC project.
