Who Is Responsible When a Costco Installation Goes Wrong?
A customer who buys an appliance from Costco with installation deals with one company. When the installation in this case went wrong, at least five turned up. Here is what each of them said, in their own words.
What you buy
The customer in this case bought a refrigerator from Costco. The complaint states that the price "included delivery and installation by Costco." The customer paid Costco.
Who shows up
RXO, a logistics company, described the arrangement the day after the flood: "Costco contracts RXO for deliveries, and RXO, in turn, hire third-party contractors." The contract itself is between RXO and Costco-Innovel Solutions, a Costco subsidiary that does business as Costco Wholesale Logistics.
The customer chooses none of them.
What each one said about responsibility
- Costco's chief executive, December 2, 2024: "we will focus on getting this problem fixed if our people caused it."
- RXO, December 3, 2024: "your claim of damage during the installation by Costco" and "You'll liaise with them [the local crew] to settle the claim."
- A Costco vice president, February 26, 2025: "your claim is with RXO."
- RXO, in its discovery responses: "RXO Employees did not install the subject Refrigerator."
- Costco's attorney, October 28, 2026: "once the refrigerator is picked up, it's not Costco's responsibility, it is the vendor's responsibility."
What the contract between them says
Costco filed its agreement with RXO in court. Under it, RXO must defend and indemnify Costco, and Costco's subsidiary "will have the right to select counsel, control the defense, and settle Claims." RXO must also make every subcontractor carry the same insurance RXO carries.
In other words, the companies have an arrangement among themselves about who pays. The customer is not a party to it.
What a court has decided
Nothing yet. The lawsuit names Costco Wholesale, Costco-Innovel and RXO. Costco and RXO deny responsibility. Trial is set for March 2027.
Common questions
Does Costco install the appliances it sells?
Not with its own employees, according to Costco. In this case Costco admitted in court that "RXO handled the delivery and installation of the refrigerator." RXO said it hires third-party contractors.
Can I choose who installs my Costco appliance?
No. The installer is chosen by Costco's contractor.
Does Costco have insurance for installation damage?
Costco's claims administrator wrote that "Costco Wholesale is self-insured." Costco's disclosure of insurance that could cover a judgment in this case reads: "None for amount in controversy."
This guide is general information from one customer's experience, not legal advice. The quotations come from the record of Byrd v. Costco; see the timeline and the court file.