Verlan Insurance Sues Georgia Chemical Plant Over $20M Fire Payout
Verlan Fire Insurance Co., a subsidiary of Hanover Insurance Group, has filed a subrogation lawsuit against Bio-Lab and its parent company following a significant fire at a chemical warehouse in Conyers, Georgia. The fire, which occurred on September 29, 2024, resulted in a $20 million payout by Verlan to Diversitech, an air-conditioning manufacturer affected by the incident. The fire was triggered by a chemical reaction when stored chemicals came into contact with water, leading to explosions and a toxic cloud that necessitated the evacuation of 17,000 people and the closure of numerous businesses. The lawsuit alleges negligence on the part of Bio-Lab in their storage and fire-suppression practices. The facility, which has a history of similar incidents, stored large quantities of reactive chemicals without adequate safety measures, according to the complaint.