California Appeals Court Limits Homeowner Liability in Insurer-Ordered Inspection Injuries

A California appeals court has confirmed the application of the Privette doctrine, limiting homeowner liability for injuries suffered by independent contractors during insurer-ordered home inspections. The case involved an injury to an employee of Property and Casualty Surveys, Inc., who fell on visible backyard steps while inspecting a home at the request of the homeowner's insurer. The court ruled that the homeowner, by paying for insurance and permitting the inspection, effectively delegated workplace safety responsibilities to the independent contractor, thereby barring tort claims under Privette. It further distinguished this case from others involving assumption of risk or non-hiring by the property owner. The court also rejected claims based on a concealed-hazard theory, noting the steps were visible and the injury likely resulted from a failure to observe rather than an unknown hazard. Speculation about wet or mossy conditions was deemed insufficient to establish a concealed risk. This decision affirms that homeowners and insurers retain limited liability when independent contractors assume control of inspection safety unless there is retained control or clearly concealed hazards. This ruling is particularly relevant for insurance carriers and managing general agents overseeing underwriting and renewal inspections conducted by independent contractors. It underscores the importance of clear vendor agreements, defined scopes of work, and reinforced safety protocols in limiting liability exposure. Insurers can maintain current inspection practices while emphasizing contractor training and hazard awareness. The court's decision is precedential in California and clarifies liability boundaries in insurer-directed residential inspections. Claims teams may find this ruling supportive when asserting Privette-based defenses in similar injury lawsuits. The case does not analyze insurance policy clauses but focuses on liability allocation and tort law principles related to workplace safety delegation in the context of insurer-ordered inspections.