Workers’ Compensation Exclusivity-Intentional Acts Exclusion

7^th Circuit Court of Appeals

Case Name: Insurance Company of the West v. High Performance Alloys, Inc.

Case No.: 25-1327

Officials: Kirsch, Jackson-Akiwumi, and Pryor, Circuit Judges.

Focus: Workers’ Compensation Exclusivity-Intentional Acts Exclusion

An employee of High Performance Alloys, Inc. died in a workplace accident at the company’s facility. The employee’s estate filed a wrongful death lawsuit in Indiana state court, alleging that the company engaged in gross negligence, willful and wanton misconduct, violated safety regulations, and acted with actual intent to cause injury. The complaint alleged that the company knew of dangerous conditions, had prior safety violations, failed to implement available safety measures, and intentionally exposed the employee to harm.

High Performance Alloys sought defense and indemnity coverage under a Workers’ Compensation and Employers’ Liability Insurance Policy issued by Insurance Company of the West (ICW). ICW denied coverage, contending that the estate’s claims were excluded under the policy. ICW then filed a declaratory judgment action in the Southern District of Indiana seeking a ruling that it had no duty to defend or indemnify the company. High Performance Alloys filed a counterclaim seeking coverage. The district court ruled in favor of ICW, concluding that the claims were either barred by Indiana’s Workers’ Compensation Act or excluded by the policy’s intentional acts provision.

The Seventh Circuit found that the estate’s allegations fell into one of two categories: Either they alleged an accidental workplace injury subject to Indiana’s workers’ compensation system, or they alleged an intentional injury excluded from coverage. The Seventh Circuit determined that the complaint did not plead sufficient facts to establish an intentional tort under Indiana law and declined to certify questions to the Indiana Supreme Court. The court found that ICW had no duty to defend High Performance Alloys in the underlying wrongful death action.

Affirmed.

Decided 08/04/26

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