Iowa’s Supreme Court decided that an insurer was not responsible for safety issues at a plant that the insurer was accused of failing to, or negligently, inspecting by current and former employees.

Current and former employees of TPI Iowa, LLC, a wind blade manufacturing facility, brought a suit against the Insurance Company of the State of Pennsylvania (ICSOP) based on their failure to inspect the plant, or in the alternative, based on a negligent inspection.

The company employees hundreds at their Newton plant and was cited last year by Iowa’s Occupational Safety and Health Administration (IOSHA) for workplace safety violations including fire hazards, airborne contaminants, faulty record keeping, fall hazards and a lack of employee training. According to the Associated Press, several workers had complained about exposure to dangerous chemicals and skin injuries and after they reported injuries to IOSHA some were fired.

The plaintiffs claim Iowa Code 517.5, which provides immunity to insurance companies and their inspectors from tort liability based upon allegations of negligent or faulty inspection, was unconstitutional. The court determined it was constitutional and upheld the trial court’s earlier dismissal of the civil action brought by employees. They made their decision based on the idea that workers’ compensation was meant to protect third parties from tort actions because of the grand bargain of the workers’ comp system.

TPI agreed to pay penalties to settle with IOSHA and the company must fix residual safety hazards including restricting employee contact with hazardous chemicals, eliminating fall dangers and altering how the factory stores combustible liquids. They have adopted new polyethylene suits to protect workers against chemicals.

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