Court Reverses Finding that Insurers Can Be Liable for Asbestos Injuries Under Negligent Inspection Theory

MONTGOMERY, Ala. - The Alabama Supreme Court has found that insurers who inspect a premises as part of the 'inspection and audit' clause of policies issued to their insured cannot later be held liable for injuries caused by workers' exposure to asbestos at the facility. Commercial Union Insurance Co. v. DeShazo, et al., No. 1002083 (Ala. Sup. Ct.).

Reversing a decision that denied the insurers summary judgment on claims they should be held liable for the asbestos-related injuries under a theory of negligent inspection, the state Supreme Court found that the inspection clauses were solely for the insurers' benefit and …