Insurer sues BioLab over $20M payout tied to Conyers chemical fire
BioLab. FOX 5 Atlanta photo
CONYERS, Ga. - An insurance carrier has filed a federal lawsuit against BioLab and its parent companies, alleging that failures at the Conyers-based chemical plant triggered a catastrophic warehouse fire that blanketed communities in hazardous fumes last year.
What we know:
Verlan Fire Insurance Company, a subsidiary of Hanover Insurance Group, is seeking more than $20 million—money it says it already paid to cover losses for Diversitech, an HVAC supplier located near the burned facility, according to BeInsure.com. The complaint says BioLab, KIK International and KIK Custom Products should cover existing payouts and any future claims related to damages stemming from the incident.
The lawsuit argues that BioLab’s storage and handling of water-reactive chemicals allowed a malfunctioning sprinkler system to trigger a chemical reaction, causing a fire and sending a toxic plume across Rockdale County and metro Atlanta.
Federal filings say the facility lacked an adequate fire suppression system and did not maintain a workable emergency action plan. A June 2023 Environmental Protection Agency inspection listed BioLab’s contingency plan as "N/A," and additional federal documents show updated emergency plans were only approved after the fire.
The backstory:
On Sept. 29, 2024, officials evacuated more than 17,000 residents, and more than 70,000 others were ordered to shelter indoors for days as smoke carrying a strong chlorine odor spread across the county. Portions of the advisory remained in effect for more than two weeks. The plant’s roof collapsed during the incident, prompting a multi-agency investigation that remains active.
In April 2025, OSHA cited BioLab for four serious and two lesser violations related to improper storage of hazardous materials and proposed $61,473 in penalties.
More than 20 lawsuits filed by residents and businesses have since been consolidated in federal court, alleging long-term health risks, economic damage and property loss. Rockdale County commissioners are pursuing compensation and permanent closure of the facility, citing repeated safety failures.
MOST RECENT STORIES
- One year later, Rockdale residents still seeking answers on BioLab fire
- Department of Public Health surveying residents after BioLab fire
- BioLab fire: Investigators talk about investigation into massive fire
- BioLab fire report reveals 'disturbing' lack of safeguards for chemical storage, agency says
The other side:
BioLab has not commented on the new lawsuit and has disputed portions of the federal record in past filings. Verlan’s attorneys also declined to provide further detail. The case now moves forward in U.S. District Court in Atlanta, adding to the company’s legal challenges, regulatory scrutiny and mounting community pressure.