Ever seen an ad for "mesothelioma" and wonder what is that about? Its generally law firms looking for people with asbestos related lung cancer (edit: see replies for better description of the illness). The Asbestos particles are so small your body's natural filters don't stop them from getting stuck in your lungs, where they can cause cancer. As this point I can't imagine the insurance liability to start using asbest…
for the last forty or more years, the biggest pressure against the use of asbestos has been lawsuits, not government regulation.
many, many US companies were forced into bankruptcy by class action asbestos lawsuits which attached huge liabilities to them, even though their use of asbestos may have been quite limited.
the asbestos lawsuit proliferation was such a strain on US industrial businesses that, in the early 2000's, the Senate almost created a huge asbestos trust fund, administered by the government, funded by these companies (and probably also government) to offload the liability from companies so that they could avoid bankruptcy and continue doing business, employing people, etc. (the legislation never passed).
bottom line: companies would want more than just EPA approval to start cranking out loads of new asbestos products. EPA approval does little to protect them against these expensive lawsuits. what they would need is a rock-solid lawsuit shield.