Category Archives: Claims

by | May 31, 2012 · 6:26 am

Hospitality Industry Business Risks: Hotel Owners Must Consider "Business Loss/Interruption Insurance" As Part Of Comprehensive "Disaster Insurance" Coverage

“…many hotels don’t have business interruption insurance because it comes with higher premiums and deductibles…(one hotel) close to the Kentucky Derby area was hit by a tornado…the hotel wasn’t damaged, but they lost all of their utilities. If they hadn’t had that business loss insurance, they would have lost all of that income they would have generated during the race.”

After two tornadoes hit the same Midwest region in the United States within a year and caused extensive hotel damage, disaster insurance deductibles are on the rise and hoteliers are mulling their coverage options.

  • Higher deductibles – While premiums appear to be remaining steady, insurance companies in the Midwest are charging a higher rate of percentage deductibles to help keep costs down, he said. As an example, if a hotel had $100 million in coverage and there was a 5% deductible, the deductible would be $5 million.
  • Wind and flood insurance premiums in the Midwest remain relatively flat overall, with slight increases for some hotels. In other parts of the country, such as coastal areas, the cost of wind and flood insurance has risen 8% to 10% on average, according to sources.
  • Reinsurance options—insurance that is purchased by one insurance company from another—are available, as are percentage deductibles based on the amount of coverage rather than a flat rate.
  • Wind deductible buy-back insurance—which provides a buy-back policy that reduces the higher percentage deductible—with deductibles most likely still will be higher than the flat deductibles previously offered.
  • Storm surge coverage is available under a flood plan or wind storm plan. Some policies exclude floods altogether.
  • Business loss/interruption insurance - Hotels impacted after the 9/11 terrorist attacks and hotels in California affected by the 1994 Northridge, California, earthquake would have benefited greatly from business loss/interruption insurance.

For more:  http://www.hotelnewsnow.com/Articles.aspx/8282/Hoteliers-mull-disaster-insurance-options

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by | May 24, 2012 · 6:19 am

Hospitality Industry Property Risks: Oklahoma Restaurant Fire Starts On Kitchen Stove And Spreads Through Vent Onto Roof; Inspectors To Determine If Fire Suppression System Functioned Properly

“…Officials were waiting for a code inspector to determine whether the kitchen’s fire suppression system was functioning, which could determine when they would allow the restaurant to reopen…”

[youtube=http://www.youtube.com/watch?v=qVNyYxPolwc&feature=player_embedded]

The blaze began on a stove at El Tequila Mexican Restaurant and briefly spread through a vent onto the roof. Damage was confined to the kitchen, the vent and a small area of the roof, he said. The restaurant had not yet opened and only a handful of employees were inside.

For more:  http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20120524_11_A8_CUTLIN842188

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by | May 6, 2012 · 7:23 am

Hospitality Industry Property Risks: Minnesota Restaurant Fire And Water Damage Results In $1 Million Reconstruction; "Discarded Cigarette" On Wood Deck Determined As Cause

“…a cigarette discarded in a flower pot on the deck sparked the fire that, coupled with the water used to extinguish it, caused more than $1 million in damage and closed the restaurant for more than six months…”

Even though the fire was mostly confined to the deck and part of the bar, the damage turned out to be much more severe than originally thought. It was February before the contractor could start reconstruction by gutting the remaining structure.

But Casper’s Cherokee of Eagan, the familiar barn-shaped restaurant and bar on Nicols Road, is on its way back. The restaurant opens Monday, completely refurnished and with some tweaks to the menu. Among them: A Blazin’ Barn Burger — proof that owner Rick Casper has a sense of humor — and Eagan’s Firehouse No. 5 Burger — named in honor of the department that responded to the blaze Oct. 9.

As the staff prepared for reopening last week, there were still lots of details to pin down. Chairs had not yet been delivered. A cement patio soon will be added where the deck once stood.

There was a flurry of staff training, initiating 50 new crew members and refreshing the roughly 20 people who waited for Casper’s to reopen, even though there wasn’t money to pay them past December.

For more:  http://www.startribune.com/local/south/149897095.html

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by | May 2, 2012 · 6:53 am

Hospitality Industry Property Risks: Georgia Restaurant Fire Destroys Building; Cause Determined To Be "Careless Smoking"

 “The fire marshal’s office determined the cause of the fire was careless smoking, an improperly discarded cigarette,”

Fire destroyed the Long John Silver’s restaurant at 1281 Thompson Bridge Road Saturday afternoon. “The building is a total loss,” Gainesville Fire Chief Jon Canada said.

When firefighters arrived, Canada said smoke was showing from the entrance side of the restaurant as well as the eaves and roof. Flames broke through the roof, which began collapsing inward, he said.

Firefighters set up a defensive attack with two ladder trucks, Canada said. He said crews were able to knock down the fire just before 4 p.m.

For more:  http://www.gainesvilletimes.com/section/6/article/66809/

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by | May 1, 2012 · 7:54 am

Hospitality Industry Health Risks: $6 Million "Negligence Lawsuit" Filed Against Maryland Hotel After "Legionnaires' Disease" Outbreak Confirmed In Water System

“…The lawsuit seeks damages of $6 million dollars, $5 million for negligence and $1 million for loss of consortium…”

“…The Virginia resident who filed the claim reportedly spent 6 weeks in the hospital suffering a number of severe medical conditions and that cost hundreds of thousands of dollars in medical bills…”

The Maryland Department of Health and Mental Hygiene announced the illnesses in October 2011, which occurred after the individuals stayed at an Ocean City hotel. The hotel was later closed for several days to perform tests on the water systems to try and locate the bacteria that cause the disease.  Earlier this month, it was reported that one of those who contracted Legionnaires’ disease while staying at the hotel has filed a lawsuit against the hotel. 

[youtube=http://www.youtube.com/watch?v=HB7g81JxCq0]

  • Each year, between 8,000 and 18,000 people are hospitalized with Legionnaires’ disease in the U.S.
  • It is believed that many infections are not diagnosed or reported, so this number may be significantly higher.
  • More cases are usually found in the summer and early fall, but it can occur any time of year.
  • “Legionnaires’ disease is caused by Legionella bacteria,”
  • “Legionella bacteria can sometimes be found in manmade environments that contain warm water. 
  • These may include hot tubs, cooling towers, hot water tanks, large plumbing systems, or parts of the air-conditioning systems in large buildings. 
  • Proactive testing for Legionella can help prevent outbreaks of the disease. 
  • If an outbreak has occurred, testing for the bacteria can pinpoint sources of the potentially deadly pathogen to prevent further illnesses,”

For more:  http://www.environmental-expert.com/news/victim-of-legionnaires-disease-files-lawsuit-against-maryland-hotel-292018

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by | April 28, 2012 · 6:18 am

Hospitality Industry Legal Risks: West Virginia Hotel Owner Sued Over "Similar Name" In "Common Law Trademark" Lawsuit

“…The suit also seeks Bhatin to change the hotel’s domain name, hotelmorgantown.com, and to file a cancellation of the Hotel Morgantown trade name with the Secretary of State’s office…”

Officials of an 86-year-old Morgantown hotel are crying foul over a nearby hotel’s name, saying the similar name violates its longstanding common law trademark. Filed April 26 by The Hotel Morgan Company against Himanshu Bhatin and his company Sahaj Morgantown LLC, the suit seeks Bhatin to change the name of his Hotel Morgantown to one that does not contain any variation of the words “hotel,” “Morgan” and “Morgantown.”

Hotel Morgan opened in 1925 as a “premier full-service lodging, restaurant and banquet facility,” the suit states, and has gained “regional and national recognition and prominence.”

Bhatin, a New Jersey resident, opened Hotel Morgantown & Conference Center in 2011. 

“Although Hotel Morgan is not registered as a state or federal service mark, it has acquired ‘secondary meaning,’ and is lawfully entitled to the protection afforded to common law trademarks under various state, federal and international laws, conventions and policies.”

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by | April 27, 2012 · 7:02 am

Hospitality Industry Health Risks: Two Wisconsin Women File "Salmonella Sushi Lawsuit" After Eating Sushi Rolls At Local Restaurant; Any Party In "Chain Of Distribution" Potentially Liable Under Product Liability Laws

Food-poisoning cases like the Salmonella sushi lawsuit generally fall under product liability laws. Any party in the product’s chain of distribution — including manufacturers, retailers, and middlemen — can potentially be held liable, depending on the source of contamination.

“…distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC…”

In a Salmonella sushi lawsuit filed last week, two Wisconsin women, 22 and 33, claim they were severely sickened after eating tuna sushi rolls at a local restaurant, MSNBC reports. The sushi rolls allegedly contained ground yellowfin tuna with Nakaochi Scrape.

California-based Moon Marine USA has recalled 59,000 pounds of raw, ground yellowfin tuna from India, which was packaged as “Nakaochi Scrape AA” or “AAA.”

But distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC.

Salmonella infections generally lead to diarrhea, fever, and abdominal cramps within 72 hours, according to the FDA. Victims usually recover after about a week.

But the Wisconsin women’s infections were more severe, and required hospital treatment. One woman was diagnosed with an ulcerated colon, which her personal-injury lawsuit blames on contaminated Nakaochi Scrape.

Scientific tests show the Salmonella sushi victims were sickened by a rare type of bacteria called Salmonella Bareilly, the women’s lawyer said. Investigations are underway to determine where bacteria came from.

For more:  http://www.reuters.com/article/2012/04/25/tagblogsfindlawcom2012-injured-idUS319130664220120425

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by | April 20, 2012 · 1:52 am

Hospitality Industry Guest Safety Risks: Houston Hotel Sued By Parents Of Young Girl Injured By Restaurant's "Rotating Floors"

“…(they) are suing for damages that include emergency room expenses, future surgeries to “restore the normal appearance of Erin’s foot” and prescription drugs as well as “likely permanent disfigurement” of the child’s foot. She was involved in dance classes prior to the incident…”

They allege in the lawsuit that Hyatt and Spindletop failed to use reasonable care to make the restaurant safe, primarily by failing to “remedy and warn of a serious safety hazard that was especially dangerous to small children.”

Set at the very top of the Hyatt Regency Houston hotel downtown, Spindletop is a popular destination for date nights and special occasions. The rotating floors in the restaurant spin guests slowly around for impeccable views of the city skyline, making Spindletop a draw since it first opened in 1972. But those rotating floors ended up creating a nightmarish scenario for one couple, who allege in a lawsuit that their 4-year-old’s foot became lodged between two rotating platforms, causing serious injuries.

The couple, Dehong Shen and Min Zhang, filed a lawsuit against Spindletop and its parent company, the Hyatt corporation, on April 17. In the filing, Shen and Zhang accuse the restaurant of gross negligence for failing to prevent the injury to their child and for failing to provide sufficient assistance to the family when the toddler’s leg became stuck.

For more:  http://blogs.houstonpress.com/eating/2012/04/spindletop_lawsuit_rotating_floor_child_injured.php

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by | · 1:52 am

Hospitality Industry Guest Safety Risks: Houston Hotel Sued By Parents Of Young Girl Injured By Restaurant's "Rotating Floors"

“…(they) are suing for damages that include emergency room expenses, future surgeries to “restore the normal appearance of Erin’s foot” and prescription drugs as well as “likely permanent disfigurement” of the child’s foot. She was involved in dance classes prior to the incident…”

They allege in the lawsuit that Hyatt and Spindletop failed to use reasonable care to make the restaurant safe, primarily by failing to “remedy and warn of a serious safety hazard that was especially dangerous to small children.”

Set at the very top of the Hyatt Regency Houston hotel downtown, Spindletop is a popular destination for date nights and special occasions. The rotating floors in the restaurant spin guests slowly around for impeccable views of the city skyline, making Spindletop a draw since it first opened in 1972. But those rotating floors ended up creating a nightmarish scenario for one couple, who allege in a lawsuit that their 4-year-old’s foot became lodged between two rotating platforms, causing serious injuries.

The couple, Dehong Shen and Min Zhang, filed a lawsuit against Spindletop and its parent company, the Hyatt corporation, on April 17. In the filing, Shen and Zhang accuse the restaurant of gross negligence for failing to prevent the injury to their child and for failing to provide sufficient assistance to the family when the toddler’s leg became stuck.

For more:  http://blogs.houstonpress.com/eating/2012/04/spindletop_lawsuit_rotating_floor_child_injured.php

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by | April 18, 2012 · 6:40 am

Hospitality Industry Legal Risks: Colorado Hotel Sued By Woman "Bitten By A Vicious Dog" Owned By Hotel Guest; Written "Pet Care Policies" Not Followed According To Lawsuit

“…The lawsuit claims that employees at The Little Nell hotel, which provided dog-sitting services for Babu, knew the dog had violent tendencies…”

“The Little Nell’s Guide to Petiquette,” a set of written policies governing pet care and behavior at the hotel, required that a problem dog such as Babu either be removed from the premises or have a sitter overseeing it at all times, the lawsuit said, according to the Times. The lawsuit accuses the hotel of failing to follow its policy…”

The Aspen Skiing Co. and a New York socialite couple are defendants in a lawsuit that accuses them of keeping a vicious dog that bit a woman at the Gondola Plaza. Beth Fischer, of Aspen, filed a complaint Monday in Pitkin County District Court saying she has racked up more than $200,000 in medical bills after a black Labrador retriever bit her on Sept. 18, according to the Aspen Times.

She has had multiple surgeries to her hand and resulting staph infections because of the attack, the lawsuit said. Fischer’s lawsuit said that she was walking in the Gondola Plaza, near the outdoor tables at Starbucks, when a black Labrador named Babu Sarofim “leapt up from its position and lunged directly” at her, biting her left hand.

“Fischer was able to free her left hand from Babu’s mouth and she immediately realized she was injured and bleeding from the dog bite,” the lawsuit said. A woman who witnessed the attack called 911.

For more: http://www.thedenverchannel.com/news/30907562/detail.html

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