Liberty Mutual Unit Seeks Recovery After Toxic Plume Damages Nearby Property
Overview
Ohio Security Insurance Company, a subsidiary of Liberty Mutual, is pursuing reimbursement for losses incurred due to a chemical fire at Bio-Lab’s facility in Conyers, Georgia. The incident released toxic fallout that damaged properties insured by Ohio Security.
Background
- Incident Date: September 29, 2024
- Location: Bio-Lab chemical plant at 1700 Covington Highway, Conyers, GA
- Impact: Approximately 17,000 individuals evacuated with shelter-in-place advisories affecting around 90,000 residents.
Lawsuit Details
- Filed: September 17, 2026, in the Northern District of Georgia
- Defendants: Bio-Lab, Inc., KIK Custom Products, Inc., and KIK International LLC
- Claim Type: Subrogation action, seeking to recoup the indemnity payments made to its policyholder, Olympic Two LLC.
Property Damage
- Affected Properties: Two commercial rental properties owned by Olympic Two LLC located less than a mile from the chemical plant.
- Extent of Damage: Corrosion of metal roofing, damage to HVAC systems, and other structural components due to exposure to smoke, soot, and corrosive chemicals.
Incident Details
The fire began in a warehouse known as Plant 12, which contained approximately 5,000 “super sacks” of reactive chemicals, notably Trichloroisocyanuric Acid (TCCA). The mishandling of sprinklers during the incident exacerbated the chemical reactions, leading to a significant fire and toxic emissions. The warehouse collapsed by late evening on the same day.
Previous Incidents
Bio-Lab has a documented history of safety violations and past incidents:
- 2004: Explosion and chlorine plume affecting local residents.
- 2016: Chemical storage-related fire discovered due to foul odors.
- 2020: Multiple fires involving TCCA reactions.
- Regulatory Actions: OSHA had issued six citations for safety violations, including improper chemical storage.
Legal Claims
Ohio Security’s lawsuit comprises five counts against the defendants:
- Negligence
- Strict liability
- Public nuisance
- Private nuisance
- Trespass
The insurer seeks recovery of over $115,405 in indemnity payments and additional costs.
Corporate Structure
KIK Custom Products, the parent company of Bio-Lab, is implicated through shared leadership and operations. The lawsuit suggests a joint liability stance for KIK Custom and KIK International.
Conclusion
This lawsuit serves as a case study of an insurer’s rights to recover losses from parties responsible for significant property damage stemming from industrial operations. The ongoing nature of the investigation into the events surrounding the fire reflects broader concerns related to chemical safety and regulatory compliance.
Note: The allegations in this case have not been proved in court.
