Category Archives: Claims

by | June 13, 2011 · 7:40 am

Hospitality Industry Insurance Risks: Florida Hotel Water Pipe Bursts Causing Lobby Ceiling To Collapse And Guest Evacuation

Guests at a Miami Beach hotel were evacuated after a water pipe in the building burst, causing the ceiling to collapse into the hotel lobby.

“…Gushing water spread into the hotel lobby and part of the ceiling collapsed, said Adonis Garcia, spokesman for Miami Beach Fire Rescue.…”

A water pipe located between the first and second floor of the Claremont Hotel on the 1700 block of Collins Avenue burst Sunday evening. Guests at the Claremont were evacuated and relocated to another hotel.

“The fire department said where the roof came down, it was actually leaking from inside and then it just blew out the ceiling,” said Ros Guttso, hotel general manager. No one was injured.

For more:  http://www.miamiherald.com/2011/06/13/2264379/miami-beach-hotel-evacuated-after.html

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by | June 5, 2011 · 9:50 am

Hospitality Industry Legal Risks: Amended "Americans With Disabilities Act" (ADA) Became Law On May 24 With Potential For "Increased Frequency Of Litigation Losses"; Management Must Improve Accomodation Efforts

“…under the amended act, an employee who suffers from depression may be able to function quite normally with the aid of medication but will still be considered to be disabled and will need to receive accommodation….”

“…the frequency of discrimination claims will likely increase — as will the frequency of litigation losses — but she says the severity of individual claims will likely not change all that much, with class actions in this field being a rarity…”

Existing employment-practices liability insurance policies shouldn’t have to be rewritten or modified, she says. “We would push back on any attempt to limit coverage just because the act has been expanded.”

Employers, however, should be integrating their disability-management programs to include non-occupationally injured and ill employees, and not just workers’ compensation cases, according to Pimentel.

“That is the big trend, and by the way, from an ADA-compliance standpoint, I recommend employers take a close look at doing that,” Pimentel says.

Employers should also be revisiting how much training they are doing among their supervisors on employee etiquette, language and comfort levels in communicating with disabled employees, he advises.

“Talking to them about their needs for accommodation is … an enforced requirement under the law,” Pimentel says.

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=533338925

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Filed under Claims, Employment Practices Liability, Insurance, Labor Issues, Legislation, Liability, Management And Ownership, Risk Management, Training

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by | May 17, 2011 · 3:02 pm

Hospitality Industry Risk Solutions: "P3 Hospitality Risk Report" On "Special Packages" Provides Important Information To Hotel Management (Video)

[youtube=http://www.youtube.com/watch?v=eQJVtyo1i0c&feature=youtu.be&hd=1]

Petra Risk Solutions’ Director of Risk Management, Todd Seiders , offers a P3 Hospitality Risk Report – ‘Special Packages’. 

P3 ( Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

  For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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Filed under Claims, Guest Issues, Injuries, Management And Ownership, Risk Management, Training

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by | May 2, 2011 · 4:05 pm

Hospitality Industry Workers' Comp Issues: State Of Illinois Seriously Reviews Employee Awards, Employer Liability And Injury Review Standards

“…In just one example of how Illinois’ system is abused, a hotel maid recently was awarded a $42,500 claim for carpal tunnel after working less than 30 days and 180 hours at a Springfield hotel…”

  • The workplace should be the primary cause of the injury or aggravation of the previously existing condition
  • Employers should not be on the hook financially for injuries that occurred outside of the workplace or in the course of previous employment
  • Health care providers should use nationally recognized American Medical Association and utilization review standards when determining a person’s impairment and treatment following an injury
  • These AMA standards are used in more than three dozen states across the United States and provide a measure of objectivity
  • Workers who are injured while under the influence of illegal drugs or alcohol should not be entitled to workers’ compensation benefits
  • The only exception would be if they can provide that the workplace caused the injury
  • Illinois should limit “wage differential” awards that are currently paid for life
  • These monetary awards are designed to make up the difference between an employee’s pay before and after an injury and were never intended to be paid past retirement age

Read more: http://www.bnd.com/2011/05/01/1690712/guest-view-its-time-to-get-workers.html#ixzz1LJ1LGtpZ

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Filed under Claims, Health, Injuries, Insurance, Labor Issues, Liability, Management And Ownership, Training

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by | April 13, 2011 · 9:31 am

Hospitality Industry Guest Health Risks: Major Hotel Sued In New York Supreme Court Over "Legionnaires' Disease Contracted At Dubai Hotel

Starwood Hotels and Resorts Worldwide is facing a $16.7m (AED61.3m) lawsuit in the US after two guests staying at the Westin Mina Seyahi in Dubai claim they caught legionnaires disease at the property.

The paper reported that Nogues started to feel weak and feverish two days after checking into the hotel with her son and a friend on February 14. With her health deteriorating, she returned to France on February 21 where she was also diagnosed with legionnaires’ disease.

The suit claims that Thomas Boyle, from Britain, and Elodie Nogues, from France, contracted the disease after staying at the Westin in January and February of 2009, according to a report in The National.

It claims the health of the pair deteriorated rapidly and resulted in hospital stays.

The disease is a form of pneumonia spread through airborne water droplets, which thrives in water and air-conditioning systems.

For more:  http://www.arabianbusiness.com/dubai-hotel-faces-16-7m-lawsuit-over-legionnaires-393411.html

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Filed under Claims, Guest Issues, Health, Insurance, Liability, Pool And Spa, Risk Management

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by | April 10, 2011 · 8:12 am

Hospitality Industry Information Security Risks: Hotel Management Should Consider "Cyber Liability Policies" With "Vicarious Liability Provisions" To Insure Guest Information Database Breaches

“…clients with robust cyber liability policies will find coverage under the vicarious liability provisions. …”

Data breaches generally represent enormous problems for companies,” said Alan N. Situn, a shareholder with law firm Greenberg Traurig L.L.P. in New York. “Not only can they be very expensive, but equally important to many companies (is) the reputational damage that they perceive from these types of breaches” if information they provide to a third party is somehow breached.

Hackers tend to hold on to such information “usually about a year, and then use it in the hope that folks have become a little bit more relaxed and not as vigilant,” said Mauricio F. Paez, a partner with law firm Jones Day in New York.

For the most part, the companies that are affected are in a damage- or crisis-management mode, said Robert J. Scott, managing partner with law firm Scott & Scott L.L.P. in Dallas. “They’re emailing their customers; they’re apologizing for the inconvenience, trying to clarify and limit the scope of the magnitude of the problem; and they’re hopeful the leakage of the email doesn’t result” in other problems.

Observers noted that the firms were notifying customers of the data breach even though they were not legally required to do so by state laws, except in North Dakota, unless more damaging personal information, such as Social Security or credit card numbers, had been revealed.

Epsilon customers whose data was breached have been “doing everything they should be doing in terms of being up front and honest with the consumers,” Mr. Scott said.

If the breach results in litigation, the question will arise of “how does that fit into the overall risk management program of the company” that hired the outside marketing company, said Kroll Ontrack’s Mr. Brill, who suggested that affected firms review their risk management programs now.

For more:  http://www.businessinsurance.com/article/20110410/ISSUE01/304109976

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by | March 21, 2011 · 3:54 pm

Hospitality Industry Workers Comp Risks: Virginia Hotel Employee Awarded Workers Comp Benefits After Fall In Restroom Injures Shoulder Already Receiving Medical Treatment

The Virginia Court of Appeals found that a cook’s right shoulder injury was not related to a preexisting condition so it awarded him benefits.

  • A cook for a hotel slipped on a wet floor in the restroom at his workplace and fell, hitting his right shoulder against a sink.
  • Before the fall, he sought medical treatment for right shoulder pain.
  • He required further treatment after the fall and sought benefits.
  • The hotel argued that there was no causal connection between the cook’s fall at work and his shoulder injury and that his injury was a preexisting condition.
  • The Virginia Court of Appeals disagreed and awarded benefits to the cook.

The court said the cook had different diagnoses and treatments before and after the fall. The court noted that the cook was undergoing treatment for tendonitis before the fall and was diagnosed with a right shoulder strain, contusion, and sprain after the fall. The cook received injections both before and after the fall, but they consisted of different drugs. Additionally, the surgical recommendations before and after the fall differed.

The hotel also argued that the cook failed to disclose his prior shoulder injury to two doctors, so their opinions should not have been relied on. The court disagreed. One doctor noted that the cook’s past medical history was “noncontributory,” and the second noted that it was “negative.” The court said these terms did not necessarily establish that the cook did not inform the doctors of his previous shoulder problems. Rather, the terms could have been interpreted to indicate a lack of foundation for alternative causation.

For more:  http://www.riskandinsurance.com/story.jsp?storyId=533334406

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by | March 15, 2011 · 2:57 pm

Hotel Industry Employee Risks: New York Hotel Employee Convicted Of Raping Guest And Civil Suit Seeks Damages For "Negligent Hiring, Supervision And Training"

A tourist filed a suit on Monday against a New York hotel where she was raped by an employee.

Her Manhattan federal court suit is seeking unspecified damages from the corporate parent company Surrey Hotel Associates for the allegedly negligent hiring, supervision and training of Jaime Marin Lopez Mendoza.

The victim’s holiday nightmare happened two days after Christmas in 2009. She was attacked at about 3am while sleeping in her room in the Dream Hotel on West 55th Street. He was convicted of first-degree rape in January and received a 15 year prison sentence.

Mendoza struck after helping the stumbling woman and her boyfriend into their room following a night of drinking, the New York Post reports. He ran off when she awoke to find him on top of her.

Manhattan Supreme Court Justice Jill Konviser described the attack as the ‘ultimate example of depravity,’ adding: ‘This crime was not only violent and calculated, but it was a master class in cowardice.’ The victim, who comes from Rhode Island, did not go to the sentencing but wrote a letter which was read out in court.

Read more: http://www.dailymail.co.uk/news/article-1366522/Tourist-sues-New-Yorks-Dream-Hotel-employee-raped-her.html#ixzz1GiAlQ223

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by | March 6, 2011 · 3:24 pm

Hospitality Industry Employee Risks: Recession Causing More Laid-Off Workers To File "Wage-And-Hour" Claims Which Is Covered Under "Employment Practices Liability" Insurance

“…industry experts say they have seen an increase in wage-and-hour claims, which has led some insurers to stop writing such defense coverage, which most typically is provided for as a sublimit under employment practices liability insurance policies…”

Laid-off workers can, for example, allege that they were not paid for all hours worked, misclassified or not properly paid overtime, experts say.

As layoffs drive wage-and-hour claims, middle-market employers may find defense coverage more difficult to find and more costly when they do, particularly in California, insurers and brokers say. The market firming for wage-and-hour defense coverage comes after a rise in claims by laid-off workers who allege violations of the Fair Labor Standards Act and other laws, according to brokers and insurers.

“It’s a reflection of how difficult it is for employees to find another job,” said Christian Hamlin, a professional lines producer in the Los Angeles office of wholesaler Burns & Wilcox Ltd.

The U.S. unemployment rate remains high, but has improved from the decade’s peak unemployment rate of 10.1% in October 2009, according to the U.S. Department of Labor’s Bureau of Labor Statistics. In February, the U.S. unemployment rate was 8.9%, a 0.1% decline from January, according to BLS.

At the same time, Coverage remains available as some insurers continue to provide it, said Michael Mahoney, senior vp at Willis Insurance Services of California Inc. in San Francisco.

For more:  http://www.businessinsurance.com/apps/pbcs.dll/article?AID=/20110306/ISSUE01/303069982

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by | March 4, 2011 · 8:32 am

Hospitality Industry Employee Theft: Delaware Hotel Accounting Manager Arrested For Cash Thefts And Falsifying Business Records

Detectives with the Division of Gaming Enforcement arrested 53-year-old Andrew McCoy of Smyrna on Tuesday. He is charged with theft and falsifying business records.

  • An employee theft is any intentional misappropriation of employer property, e.g., inventory, fixed assets, currency checks, or trade secrets.
  • It can include fraud (intentionally misleading the employer), embezzlement (theft of corporate funds) or forgery (altered negotiable instruments).
  • It can be as straightforward as a theft of petty cash or as complex as a misappropriation scheme detectable only in an audit.
  • It can be the isolated act of a single low-level employee or a complex scheme involving a trusted senior employee.

Authorities say the former director of hotel accounting at Dover Downs has been arrested in connection with cash thefts from the hotel. Dover Downs CEO Denis McGlynn tells The News Journal of Wilmington that McCoy was fired in February after evidence was found of internal thefts. McGlynn says the thefts, believed to have totaled between $20,000 and $25,000, involved small cash transactions.

For more:  http://www.therepublic.com/view/story/ac67083ec0e54c05a592be7577a39914/DE–Dover_Downs-Theft/#

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