Category Archives: Claims

by | January 29, 2012 · 7:10 am

Hospitality Industry Safety Risks: Texas Restaurants Receive "Dividends" Back From Workers Compensation Insurance Program For Maintaining "Successful Safety Programs"

“…dividends come back to restaurants participating in the TRA’s workers comp insurance program… creates incentives for the restaurants to have a safety program and to work with the insurance company and the employees to maintain a safer workplace….”

“Every year we get back … a little over half of our premium that we paid. So, it’s a big return of an expense,” says Lindskog whose company has been in the program since 2004. “A lot of people don’t want workers comp insurance because it’s expensive. But if you get half of it back, it makes it much more cost effective for your restaurant.”

Texas Mutual is the leading provider of workers comp insurance in the state. It was created by the Texas Legislature in 1991 when major reforms on workers comp became effective. Its board of directors is composed of individuals from companies it insures as well as those appointed by the governor of Texas.

For more:  http://www.bizjournals.com/sanantonio/news/2012/01/25/san-antonio-restaurants-score-rebate.html?page=2

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by | January 23, 2012 · 8:06 am

Hospitality Industry Property Risks: Texas Hotel Completes Installation Of "Shatter-Resistant" Window Panes That Can Withstand "Hurricane-Force Winds And Even Bomb Blasts"

Glass panels were removed from balconies on the 37-story, $300 million building in mid-2011 after eight panels shattered on three separate occasions in June, raining glass into the hotel´s pool area and onto adjacent streets.

Final repairs will soon begin on balconies at the W Austin Hotel and Residences, with workers set to install about 1,000 panes of specially engineered glass that can withstand hurricane-force winds and even bomb blasts, according to its manufacturer.

  • SentryGlas, a product from DuPont, was determined to be the right choice, Armstrong told the American-Statesman.
  • The contractors, not Stratus, will pick up the tab for the $2.5 million project, Armstrong said. About $500,000 has already been spent removing the original glass, as well as providing security guards and protective walkways while that work was under way.
  • SentryGlas has an interlayer that holds together shattered panes, according to Harvey. But, he said, its interlayer is much, much tougher than typical laminated glass — 100 times stiffer and five times stronger.
  • Instead of brackets on the sides, the glass will now be inset with stainless steel mounts at the top and bottom of each panel.

For more: http://www.glassonweb.com/news/index/14953/

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by | January 22, 2012 · 8:39 pm

Hospitality Industry Property Risks: Wisconsin Hotel "Stairwell Pipe Bursts" On Seventh Floor Damaging Eight Rooms

“… a pipe broke in a stairwell. Water poured out for at least ten minutes and ended up in the basement of the hotel.  Eight guest rooms had water logged carpets which will have to be torn out…”

The Pfister Hotel is dealing with a mess after a pipe burst and several rooms flooded Saturday. Clean up crews spent the day at the historic hotel in downtown Milwaukee Saturday.

Fans were brought in to help dry out other areas. The hotel itself is still open.  But the burst pipe foiled Tammy Spoek’s day at the hotel’s spa.  “I was down at the spa and i was hearing that there was water. Water’s coming from the ceilings. So she came to me and said Tammy, I’m really sorry but we’re going to have to cancel your appointment,” Tammy said.

Spoek says it appeared the pipe broke somewhere near the seventh floor.

Hotel management says they believe the burst pipe is due to the cold temperatures the last few days.

The Pfister’s computer system apparently went down.  But the hotel and its restaurants did remain open.

For more:  http://www.620wtmj.com/news/local/137827354.html

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by | January 20, 2012 · 1:18 am

Hospitality Industry Food Risks: Mexican Restaurant Chain Is Source Of "Salmonella" Outbreak; Food Contamination "Likely" Occurred Prior To Reaching Chain

Investigative efforts were unable to identify a specific food associated with illness, but data indicate that contamination likely occurred before the product reached Restaurant Chain A locations.

CDC collaborated with public health officials in multiple states and the U.S. Food and Drug Administration (FDA) to investigate a multistate outbreak of Salmonella Enteritidis infections which was associated with eating food from a Mexican-style fast food restaurant chain, Restaurant Chain A. This outbreak now appears to be over.

Public health investigators used DNA “fingerprints” of Salmonella bacteria obtained through diagnostic testing with pulsed-field gel electrophoresis, or PFGE, to identify cases of illness that may be part of this outbreak. They used data from PulseNet, the national subtyping network made up of state and local public health laboratories and federal food regulatory laboratories that performs molecular surveillance of foodborne infections.

For more:  http://www.foodpoisonjournal.com/foodborne-illness-outbreaks/multi-state-salmonella-outbreak-linked-to-unnamed-mexican-restaurant-chain/

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by | January 19, 2012 · 6:47 am

Hospitality Industry Legal Risks: "Class-Action Lawsuit" Filed Against New York Hotel And Water Park For "Norovirus Outbreak" Stemming From "Contaminated Food And Pool Water"

“…The state Department of Health documented more than 600 cases of norovirus in March 2008, apparently stemming from contaminated food and pool water at the park’s hotel complex…”

“…alleges that Great Escape, and its parent company Six Flags Inc., failed to maintain proper sanitary conditions and didn’t warn guests once the outbreak became known…”

Attorneys representing more than 100 people filed a class-action lawsuit Wednesday in state Supreme Court in Warren County against the Six Flags Great Escape Lodge & Indoor Waterpark over a 2008 norovirus outbreak.

“Here, many people, especially children, suffered brief but violent periods of illness,” said Don Boyajian, one of two attorneys representing those who were infected.

Those infected experienced brief but violent fits of vomiting and diarrhea.

Dozens of people filed lawsuits following the incident. Those claims were consolidated into a single case — the class-action lawsuit, which has been in the works since 2009.

Boyajian did not specify the amount of damages being sought. He said damages would depend on the virus’ impact on each individual.

Attorneys representing Great Escape were not available on Wednesday for comment.

Read more: http://poststar.com/news/local/class-action-lawsuit-filed-against-great-escape-over-norovirus-outbreak/article_997adaa2-4226-11e1-8bea-0019bb2963f4.html#ixzz1juoN2fka

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by | January 18, 2012 · 1:42 am

Hospitality Industry Legal Risks: Restaurant Group Loses Appeal To Supreme Court Over "Minimum Wage" Lawsuit Regarding "Underpayment Of Tip Income"

Many…employees claimed that, because they spent more than 20% of their time performing duties such as cleaning and prepping, they should earn full minimum wage during hours worked without tips.

Applebee’s turned to the Supreme Court in October seeking to overturn an earlier ruling from a federal court of appeals in Missouri allowing the case to proceed to trial in September. The company claims that prep work and cleanup is part of employees’ tip-earning responsibilities.

The Supreme Court on Tuesday turned down an appeal from Applebee’s International Inc., which is battling a lawsuit from more than 5,500 bartenders and servers accusing the restaurant chain of underpaying them.

The high court declined to hear Applebee’s case, which focuses on a practice in which restaurants pay employees reduced minimum wage by factoring in the extra boost provided by tips.

Known as a “tip credit,” the practice is banned in states such as California and Minnesota but permitted in Missouri, where many of the plaintiffs work.

For more:  http://www.latimes.com/business/money/la-fi-mo-applebees-supreme-court-20120117,0,6981441.story

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by | January 16, 2012 · 7:13 am

Hospitality Inudustry Insurance Risks: Restaurants Are Adding New "Business Innovations" That May Not Be Covered By Existing Insurance Coverages

“…Many (restaurants) are turning to innovations to grow their business. While that can be a plus for their balance sheets, it can also open the door to unexpected liabilities that their insurance policies were not designed to cover…”

Agents can head off this scenario and build a strong consultative relationship with their restaurant customers by asking key questions at renewal time. Here are some of the trends that could put restaurants at risk and the questions agents should ask their restaurant customers :

  1. Mobility. Has the restaurant added new services, such as delivery of meals using hired drivers with their own cars?
  2. Branch out businesses. Has the restaurant started a new line of business, such as catering?
  3. Trendy foods. Has the restaurant introduced new menu offerings as part of the strategy for attracting more customers, such as locally sourced foods, an emphasis on organic ingredients or assurances about non-allergenic ingredients?
  4. Additional payment methods. Is the restaurant accepting new methods of payment, such as online credit charges or smartphone purchasing?

All too often, the lack of appropriate coverage only becomes evident when a mishap occurs and a claim is filed. After someone has already threatened to sue for damages is usually a bad time for restaurant owners to discover they should have consulted with their insurance agent about their insurance needs before changing their business model.

For more:  http://www.propertycasualty360.com/2012/01/12/4-trends-that-can-put-restaurants-at-risk

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by | January 15, 2012 · 1:05 am

Hospitality Industry Legal Risks: Texas Hotel Sued By Family Of Housekeeper Who Died Falling Down Service Elevator Shaft; State Required Inspection Two-Weeks Overdue

“…Gloria Rodriguez, 65, had been an employee at the Crockett Hotel for 12 years when she fell six stories down the service elevator shaft Dec. 28. The elevator’s state-required annual inspection was more than two weeks overdue at the time…”

The family of a Crockett Hotel housekeeper who plunged to her death down an open elevator shaft last month has filed a wrongful death lawsuit.

Named in the suit are New Jersey-based Otis Elevator Company and 1859-Historic Hotels Ltd., a Galveston-based company that owns the Crockett Hotel and the nearby Menger Hotel in downtown San Antonio.

“Based upon current information, it is believed that she attempted to get on the elevator but when the doors opened there was no elevator, causing her to fall,” Houston-based attorney James Hada wrote in the suit, filed Wednesday.

Read more: http://www.mysanantonio.com/news/local_news/article/Wrongful-death-suit-filed-for-fatal-elevator-2519149.php#ixzz1jSJFD4KN

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by | January 13, 2012 · 7:16 am

Hospitality Industry Theft Risks: California Hotel Robbery Suspect Entered Guest Rooms Through "Open Doors" And "While Faking A Disability To Avoid Suspicion"

“… in rooms where guests left without closing their doors tightly, jewelry, watches, electronics and wallets were missing. “He had credit cards from some of the victims, we believe he was involved in fraud and identity theft.”

“…Hotel workers told us they believe Hudson used a handicapped placard on his car, and walked with a limp. They speculate that is because of his apparent disability. Some hotel patrons may have opened side doors and let him in…”

Fresno police have arrested a suspect in a series of burglaries in hotels and motels in the Central Valley. Police have linked James McGovern to burglaries at three hotels in Fresno. He’s also a suspect in burglaries in Kingsburg, Clovis, Madera and Chowchilla.

Police think McGovern slipped in through side doors as guests left, and then walked the halls, looking for targets. Fresno Police Sergeant Mark Hudson told Action News the Airport Holiday Inn, The Marriot Courtyard and Homewood Suites in Fresno were among those McGovern hit. “He was going into these hotels and just checking for open doors, maybe where maids had been in going in stealing the TV’s.”

For more: http://abclocal.go.com/kfsn/story?section=news/local&id=8503146

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by | January 12, 2012 · 7:00 am

Hospitality Industry Legal Risks: Washington State Supreme Court To Hear Restaurant Operator's "Products Liability And Negligence Lawsuit"; Employee "Spat On Hamburger"

An appeals court asked a state supreme court for help in deciding whether to revive a case by a police officer against Burger King over a Whopper he says a worker spat on.

Bylsma sued Burger King and restaurant operator Kaizen Restaurants Inc under products liability and negligence laws. He said he suffered ongoing emotional trauma from the incident, including vomiting, nausea, food anxiety and insomnia that required professional help.

The U.S. Court of Appeals for the 9th Circuit on Wednesday asked the Washington Supreme Court to clarify whether Washington law would allow the officer to recover damages for emotional harm when he only touched, but did not eat, the contaminated burger.

Clark County Sheriff’s Deputy Edward Bylsma said in the lawsuit that he drove his police cruiser through a Burger King drive-thru in Vancouver, Washington, in March 2009. He had “uneasy feeling” about the two employees that served him, the complaint said. When Bylsma later examined the burger, he noticed a large glob of spit on the meat patty. He touched the substance, but did not eat the burger.

DNA testing revealed the saliva belonged to one of the Burger King employees, who pled guilty to assault and was sentenced to 90 days in jail, the court opinion said.

For more: http://newsandinsight.thomsonreuters.com/Legal/News/2012/01_-_January/9th_Circuit_asks_state_court_to_weigh_in_on_Whopper_spit_suit/

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