Fire insurance company sues BioLab for millions after 2024 fire

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Traffic on I-20 came to a standstill as thick smoke from the BioLab chemical fire filled the air over Conyers, Ga., on Sept. 29, 2024.

Credit: Bill Cross

An insurance company is suing BioLab and its parent company for $20 million, alleging the chemical manufacturer’s negligence caused the 2024 warehouse fire in Conyers, Ga., that sent a toxic plume of smoke over Rockdale County and disrupted daily life across metro Atlanta.

Verlan Fire Insurance Co., a subsidiary of Hanover Insurance, filed the suit in federal court seeking to recover what it paid to cover losses for Diversitech, an HVAC supplier located near the burned down BioLab warehouse. The insurer argues that BioLab, along with parent companies KIK International and KIK Custom Products, should be held responsible for those costs and any future payouts tied to the fire.

In the complaint, filed in the Northern District of Georgia, Verlan says BioLab’s “negligence, carelessness, and recklessness caused the fire and the release of the toxic and hazardous gases, vapors, and smoke.” It also claims BioLab “did not have an adequate fire protection system at the Conyers Plant to extinguish fires quickly without causing dangerous chemical reactions with water-reactive chemicals” and did not have “an adequate emergency response plan.” 

BioLab has previously disputed federal findings about the fire and says it is cooperating with ongoing investigations. The company has not yet filed a response in the Verlan case.

A June 2023 U.S. Environmental Protection Agency  inspection shows the facility’s Emergency Contingency Plan was marked “N/A” under the section, indicating whether a plan had been submitted for that review period.

According to additional EPA documents obtained by GPB, several crucial post-emergency response plans were formally approved by regulatory authorities, including Georgia’s Environmental Protection Division and the U.S. Environmental Protection Agency, in the days and weeks immediately following the fire. 

Verlan says the insurance company has paid out $20,300,000 in indemnity payments to Diversitech for damages and losses so far.

BioLab declined to comment on the lawsuit. Attorneys for Verlan Fire Insurance Co. did not respond to GPB’s inquiries beyond the filing. The case will proceed in U.S. District Court in Atlanta.

BioLab is also facing a class-action lawsuit filed by residents and business owners, as well as a separate federal lawsuit brought by the Rockdale County Board of Commissioners.

For more of GPB and Pamela Kirkland’s award-winning reporting, listen to Seasons 1 and 2 of the podcast Manufacturing Danger: The BioLab Story, available wherever you get your podcasts.