A Boston jury recently awarded $83 million in damages to the family of Judith Lapointe, a Massachusetts woman who died from mesothelioma after decades of working with ceramic products. According to Mesothelioma.net, the jury found that American Art Clay Company (AMACO) knowingly sold ceramics materials containing asbestos and failed to warn users about the hazards. The verdict includes $10 million for pain and suffering, $13 million for loss of consortium and $60 million in punitive damages, illustrating the enormous liability businesses face when hazardous materials harm customers or employees.

Long‑term exposure, long‑lasting liability

The lawsuit described how Ms. Lapointe was exposed to clouds of asbestos‑laden dust from AMACO’s ceramic slips while working in her mother’s studio from the 1950s through the 1980s. Despite arguments that the company sold many ceramic products without asbestos, the jury heard testimony that AMACO knew or should have known about the dangers and still did not reformulate or warn users.

For businesses, the case shows that environmental liabilities are not limited to dramatic chemical spills. Products or building materials containing asbestos, lead paint, black mold or other contaminants can cause illnesses years later. Plaintiffs’ attorneys are increasingly aggressive in pursuing punitive damages when companies appear to have ignored known hazards. An $83‑million judgment—or even defending against one—could devastate a small or mid‑size business.

Hidden costs of environmental exposure

When contaminants injure people, the financial repercussions go far beyond obvious medical bills. Potential costs include:

• Legal judgments and settlements: compensation for pain and suffering, loss of consortium and punitive damages can reach tens of millions of dollars.
• Medical monitoring and treatment: businesses may be responsible for long‑term health monitoring and treatment of exposed individuals.
• Cleanup and remediation: removing asbestos‑contaminated materials or mold from a facility can be expensive, and regulators may require certified remediation.
• Regulatory fines and enforcement: federal and state agencies can impose penalties for violating environmental and safety regulations.
• Defense costs: legal fees to defend against claims can be substantial, even if the business prevails.
• Reputational damage and business interruption: negative publicity and facility closures can erode customer confidence and income.

Pollution liability insurance: a vital safeguard

Many standard business insurance policies exclude pollution events or gradually occurring exposures. Pollution liability insurance, also known as environmental impairment liability, can fill this gap. A well‑structured policy can cover:

• Third‑party bodily injury and property damage: including compensation to individuals harmed by asbestos, lead, mold or chemical exposures.
• Cleanup and remediation costs: expenses to remove contaminants and restore property to regulatory standards.
• Legal defense and settlements: attorney fees and court costs, plus coverage for settlements or judgments (including punitive damages in some jurisdictions).
• Sudden and gradual releases: coverage can be tailored to protect against both accidental spills and long‑term exposures.
• Business interruption and crisis management: help with lost income and costs of crisis communications to manage reputational harm.

Steps for business owners

1. Audit materials and operations. Identify any products, equipment or building components that could contain asbestos, lead paint or other hazardous substances. Engage certified inspectors if necessary.
2. Remove or remediate hazards. If asbestos or mold is present, hire qualified contractors to remove or encapsulate it. Proper disposal and documentation are critical.
3. Train employees and contractors. Ensure workers understand how to handle hazardous materials safely and comply with OSHA and EPA regulations.
4. Review contracts and supply chains. Verify that suppliers provide materials free of regulated contaminants and that contracts allocate responsibility for environmental liabilities.
5. Secure pollution liability coverage. Work with an insurance professional to obtain appropriate coverage for your industry. Policies can be tailored to cover fixed facilities, contractor operations, transportation and products.

Final thought

The $83‑million asbestos verdict is a stark reminder that environmental risks extend beyond spill headlines. Products and materials used every day can become liabilities if they contain hidden toxins. Businesses that proactively manage these risks—through careful oversight, rigorous compliance and robust pollution liability insurance, are better positioned to protect their customers, employees and bottom lines from devastating claims.