What the Department of Defense’s New Guidance Means for Risk and Insurance
On February 20, 2026, the U.S. Department of Defense released updated interim guidance that could reshape how PFAS-containing waste is destroyed in the United States. The change lifts the Department’s previous prohibition on incineration and now allows PFAS-containing materials to be incinerated at permitted hazardous waste facilities that meet specific temperature and environmental requirements. The policy update reflects evolving research, updated EPA recommendations on PFAS destruction methods, and statutory direction from recent National Defense Authorization Acts.
At first glance, the guidance may seem narrowly focused on military operations. But alarm bells are ringing across the insurance space. If you’re working with industries exposed to PFAS disposal and environmental liability risks, the implications of this DoD update extend much further. Read on to learn how.
Why PFAS Disposal Is Such a Complex Risk
PFAS (a.k.a. “forever chemicals”) are highly persistent compounds used in everything from aqueous firefighting foams (AFFF) to industrial coatings and manufacturing processes. Once released into the environment, they can linger for decades. Because of that persistence, the challenge extends beyond just controlling PFAS contamination into what to do with the waste once it’s removed.
Historically, PFAS destruction and disposal options have included:
- Secure hazardous waste landfills
- Deep well injection
- Thermal treatment technologies
- Incineration at specialized facilities
Each option carries its own environmental liability considerations, and regulators have long debated whether incineration truly destroys PFAS compounds or simply redistributes them through emissions or residual ash. The Department of Defense’s updated guidance reflects growing research in this area, but it also signals something else: PFAS destruction methods are still evolving. So, what does that mean for you?
How the Incineration Shift Changes Liability Pathways
Allowing incineration expands the number of potential PFAS disposal routes. But it also introduces additional points of exposure along the chain. When PFAS waste moves from the remediation site to final disposal, several activities can generate environmental liability.
Transportation of PFAS-containing materials
Waste haulers moving contaminated soil, AFFF, or industrial waste face potential pollution liability during transport or transfer.
Temporary storage and staging
Facilities holding PFAS materials prior to destruction may face contamination exposures if containment systems fail.
Incineration operations
Operators must demonstrate that facilities meet environmental permit requirements and temperature thresholds designed to ensure PFAS destruction.
Residual waste management
Even when incineration occurs, ash or byproducts may still require disposal, which could trigger future environmental liability claims.
The moment PFAS waste begins moving through the destruction process, the more complicated things become.
Industries Likely to Face New Scrutiny
Think about your book of business. Does it include any of the following client types? Because that’s where you could see the greatest impact:
- Environmental remediation contractors
- Waste haulers and environmental transport firms
- Hazardous waste incinerator operators
- Municipal utilities and wastewater facilities
- Airports managing AFFF firefighting foam cleanup
- Military contractors supporting base remediation
- Manufacturers handling PFAS-containing materials
Many of these businesses are already dealing with (and probably have been, for quite some time) evolving PFAS regulations, litigation pressures, and remediation requirements. Changes in disposal guidance just add another layer of operational and insurance complexity.
Agent Checklist: Questions to Ask Clients Handling PFAS Waste
As disposal options expand, it’s helpful to revisit how clients handle contaminated materials across the full lifecycle. A few targeted questions can quickly surface potential environmental liability exposures:
- How are PFAS-containing materials currently disposed of?
Understanding whether materials are landfilled, stored, transported, or incinerated helps clarify which PFAS destruction methods may create liability exposures.
- Who is responsible for transporting PFAS waste?
Transportation of contaminated materials can introduce pollution exposures if spills, leaks, or improper handling occur during transit.
- Are third-party contractors involved in remediation or disposal?
Environmental contractors and waste management vendors may create contractual liability considerations and influence coverage structure.
- Where are PFAS materials temporarily stored before disposal?
Staging locations, transfer facilities, and waste storage areas can create site pollution exposures that may require environmental liability coverage.
- Do disposal vendors have the appropriate environmental permits and compliance documentation?
Facilities handling PFAS materials (especially incinerators) must meet strict regulatory standards, which can affect both operational risk and underwriting review.
- Has the client evaluated how PFAS disposal decisions could affect insurance coverage?
Changes in handling, storage, or destruction methods may alter underwriting appetite and coverage requirements.
Where Specialized Expertise Comes In
Regulatory developments like the DoD’s updated guidance reshape risk profiles almost overnight. Luckily, it’s not just up to you to keep up with it all. Jencap has an entire team dedicated to the environmental industry. We work with you to help structure coverage solutions for PFAS-related exposures across remediation, transportation, and disposal operations. If your clients are wondering what this latest DoD update means for them, the Jencap team is ready to help. Reach out to our experts today to explore specialty coverage options.
