Atlanta: The financial fallout from the catastrophic September 2024 chemical fire at the BioLab facility in Conyers, Georgia, escalated sharply this week as a major property insurer filed a federal lawsuit seeking to recover more than $20 million in damages.
Verlan Fire Insurance Co., a subsidiary of Hanover Insurance, has dragged BioLab and its parent entities, KIK International and KIK Custom Products, to the U.S. District Court for the Northern District of Georgia. The lawsuit aims to recoup $20.3 million the insurer has already paid out to one of its commercial clients, Diversitech, an HVAC supplier severely impacted by the incident near the destroyed BioLab warehouse.
The legal action represents a significant subrogation effort, directly challenging the chemical manufacturer’s operational integrity and risk management protocols.
The insurer’s complaint paints a picture of corporate failure, alleging that BioLab’s “negligence, carelessness, and recklessness” directly caused the blaze and the resulting release of a massive, toxic chlorine gas plume that enveloped Rockdale County and metro Atlanta.