Category Archives: Claims

Hospitality Industry Property Risks: Texas Restaurant Fire Caused By “Stove Left Burning After Closing”; $10,000 In Smoke And Water Damage

Restaurant Fire Risks“…Fire officials (reported) the restaurant manager had closed up for the evening but forgot to turn off the stove. The fire caused about $10,000 in smoke and water damage to the building…”

Firefighters rushed to save a popular barbecue restaurant on the Northwest side late Saturday.
A fire broke out at the Bill Miller Bar-B-Q Restaurant in the 3200 block of Fredericksburg Road at 11:30 p.m. Saturday.

The stove caught fire but firefighters were able to quickly put out the blaze. The fire caused about $10,000 in smoke and water damage to the building.

For more:  http://www.woai.com/news/local/story/Stove-sparks-fire-at-Bill-Miller-Restaurant/e0rTKN6bt0OHcOcpHKpAgg.cspx

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Filed under Claims, Fire, Labor Issues, Maintenance, Risk Management

Hospitality Industry Property Risks: Maryland Restaurant Damaged And Two Employees Injured After Drunk Driver Crashes Vehicle Through Building’s Front Glass Exterior

“…two people were taken to the hospital initially, after a patron and an employee suffered non-life threatening injuries. A second worker was Restaurant Damage From Car Crashtransported to the hospital for anxiety…the driver was taken into custody and charged on suspicion of DUI…(a district manager) doesn’t know when the restaurant will reopen…”

A Lanham, Maryland Wendy’s restaurant is picking up the pieces after a driver of an SUV crashed through the shop and nearly reached the counter just before 9 p.m. on Friday in the 9400 block of Annapolis Road.

There was a steady flow of people on Saturday trying to place orders through the drive through and people were trying to get into the restaurant, but it’s closed. Customer after customer came to the seemingly popular spot surprised at what happened.

For more: http://www.wusa9.com/news/article/262879/373/Picking-Up-Pieces-After-Wendys-Crash-In-Md

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Filed under Claims, Injuries, Insurance, Labor Issues, Maintenance, Management And Ownership

Hospitality Industry Property Risks: Virginia Motel Suffers “Water Damage” To 24 Of 34 Rooms After Torrential Rainfall; Flood Insurance Will Cover Drywall, Paint And Carpeting Repairs

“…the motel owner said she faced a similar situation just 18 months ago. The flooding in September 2011 was even worse, she said, when the Hotel and Motel Flood Risksmotel rooms got more than three-feet of water. Patel said it was more like 2.5 feet this time…  Fortunately, she and her husband – who purchased the motel in 1978 – have flood insurance as 2011 damages totaled $120,000 including new carpet, paint, linens, drywall and more…”

The town of Culpeper continued to dry out Tuesday following torrential rainfall that dumped 5.5 inches of rain in four hours early Monday, sparking flash floods that displaced some 50 residents from an area motel.

Over at Sleepy Hollow Motel on Bus. 29, owner Urmila Patel, of Culpeper, frowned deeply at the massive clean-up ahead of her to 24 of the 34 motel rooms that sustained water damage when the banks of nearby Mountain Run ran over after midnight Monday.

Furniture, TVs, and mattresses from the rooms sat neatly stacked in the parking lot of the motel Tuesday as she waited for the insurance adjuster to arrive to assess damages. Piles of clothes left behind included a toddler’s shirt while discarded food items consisted of bags of bread, pizza boxes, soda cans and milk, evidence of recent occupancy.

For more:  http://www.dailyprogress.com/starexponent/news/local_news/sleepy-hollow-motel-dries-out-owner-says-she-will-reopen/article_3cf4c25a-d2cd-11e2-8196-0019bb30f31a.html

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Filed under Claims, Flood Insurance, Maintenance, Risk Management

Hospitality Industry Property Risks: Ohio Restaurant Fire Starts In “Kitchen Fryer” And Heavily Damages Structure; “Advanced Fire In Building’s Center” Limits Firefighters To Defensive Action

“….an employee saw smoke at a fryer as he was walking through the kitchen, preparing to make a Restaurant Fire Risksdelivery…he and the two other employees cut off power to the fryer and tried to use a fire extinguisher “but it only got worse…(there was no) way of getting it stopped…”

A fire Friday afternoon that heavily damaged a popular Irish pub and restaurant, as well as a catering business, started in a kitchen fryer. That’s the preliminary assessment from Springfield Fire Rescue Division Chief Nick Heimlich, who kept firefighters on the scene at McMurray’s Irish Pub, Paddy’s Backdoor Pizza and Carmae Catering, all housed at 122 E. College Ave., on Friday night.

Heimlich said firefighters found “an advanced fire” in the center of the structure and noted that the progression of the fire was very rapid. Because the three businesses are connected and under one roof “a problem in one pretty quickly becomes a problem in the others,” the chief said.

When the decision was made to pull back and take a defensive posture in battling the flames because crews weren’t making the kind of progress they wanted in putting out the fire, Heimlich said, “basically that means for the most part the structure is a loss.”

For more:  http://www.whiotv.com/news/news/local/mcmurrays-popular-springfield-pub-is-on-fire/nYFfP/

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Filed under Claims, Fire, Insurance, Maintenance, Risk Management

Hospitality Industry Legal Risks: Hotel Management Must Evaluate And Prepare For Potential “Punitive Damage Claims” In Lawsuits Arising From Privacy, Over Service Of Alcohol And Criminal Actions Of Employees

“…the No. 1 priority is effective case evaluation and resolution. Early factual investigation is critical in determining what happened, why it happened and who was involved. Knowing and preserving the correct version of facts and events with effective reporting mechanisms is essential Hospitality Industry Lawsuitto knowing what kind of claim possibly can be presented and what kind of exposure exists…”

“…it is critical to evaluate the potential punitive exposure early and assess the potential for a punitive claim to get to a jury. Always consider the risk that punitive damages may get to a jury, how a jury will receive the evidence and whether your hotel could be punished by a jury that is attempting to make a statement that these incidents will not be tolerated…”

Hoteliers may face the problematic public-relations case that contains a punitive damages claim. These claims include: invasion of privacy, inappropriate surveillance, over service of alcohol, and criminal actions of employees and third parties. These cases are difficult for members of the hospitality industry who pride themselves on showing customers a positive experience, want good feedback and want customers to return to their hotel.

Securing and preserving evidence, which includes photographs, videos, an accident report, incident statement and/or witness statements must be undertaken to document what the incident involves. If photographs and videos are not preserved once a hotel has notice of a claim, a court could instruct the jury that they can infer the hotel destroyed the evidence for a reason. It is critical to use technology to best find and preserve evidence. No potential accident can be overlooked as a hospitality group never knows what accidents can turn into a possible lawsuit.

For more:  http://www.hotelnewsnow.com/Articles.aspx/10625/How-to-respond-to-punitive-damages-claims

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

Hospitality Industry Property Risks: Michigan Restaurant “Electrical Fire” Spreads Throughout Ceiling Area, Causing $400,000 In Damage

“…the fire started above the ceiling, in the attic space, (where) there is some wiring in that immediate area…one of the employees could hear some crackling above the ceiling…the fire began in an area right above Restaurant Firethe entrance to the restaurant. Firefighters had to break into the ceiling of the 5,500-square-foot restaurant to put out the blaze…”

Investigators say an electrical fire caused about $400,000 in damage to a popular Clinton Township restaurant Tuesday night. The fire broke out at J. Baldwin’s Restaurant & To-Go location at 16981 Eighteen Mile Road at about 9:54 p.m., Clinton Township Fire Chief Jack Shea said today.

The main fire was under control in 20 minutes, but it took another couple of hours to put out small fires that had extended elsewhere in the building, Shea said. Firefighters cleared the scene at around 12:30 p.m.

The restaurant is open until 10 p.m. on Tuesdays, according to the company’s website. Shea said there were people at the establishment, but it was about to close. No one was injured in the blaze.

For more:  http://www.freep.com/article/20130529/NEWS04/305290076/j-baldwins-fire-restaurant-clinton

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Filed under Claims, Fire, Insurance, Management And Ownership, Risk Management

Hospitality Industry Property Risks: Ohio Restaurant Fire Caused By “Outside Propane Smoker Being Too Close To Wall”; Building A “Complete Loss” Estimated At $300,000

“…the fire chief (stated that) a restaurant cook was outside smoking prime rib when a propane fire got too close to the building…The building was Restaurant Firebuilt to code (but) it’s just the nature of the beast…they had a lot of fire moving fast, and it was hard to get to because it was under the roof, and the roof keeps water out like it is supposed to…firefighters said the building is a complete loss, about $300,000…”

A fire in North Ridgeville destroyed a local restaurant Saturday. It happened around 3 p.m. at the Black Dog Pub and Eatery on Sugar Ridge Road. Because of the disaster, the building couldn’t be saved. Crews had to demolish it. Crews with the North Ridgeville Fire Department said it was an accidental fire.

The owner of the restaurant, who didn’t want to be identified, was heartbroken as she looked on while several different agencies sprayed down the building.

“She just put a lot of money into the floors. She just remodeled the place you know. She was doing really good on business. Everything was going great,” said Xevier Neider, who was a chef at Black Dog. “It’s sad that she did a lot here, for it to just go up like that.”

For more:  http://fox8.com/2013/05/18/local-restaurant-catches-fire-with-patrons-inside/

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Filed under Claims, Fire, Insurance, Liability, Maintenance

Hospitality Industry Property Risks: California Hotel Exterior Facade Collapses Damaging Electrical System And Sprinklers, Flooding Three Floors

Hotel Property Damage“…the façade tore down sprinkler lines, sending water rushing into some of the rooms. Three floors flooded, damaging the electrical system. Officials say city engineers will be evaluating the building’s structural integrity…”

Work crews will be busy Friday cleaning up the damage left behind after part of a local hotel building collapses. Some guests at the Hampton Inn on Greenwood Street were evacuated overnight, after the hotel’s facade suddenly collapsed.

Pieces littered the ground with debris, making a mess on the north side of the building. People staying at the hotel said they heard a loud noise, grabbed their stuff and got out.

Guests were either moved to other rooms, or sent to other Hampton Inn locations.

No word what caused the collapse.

For more:  http://www.cbs8.com/story/22216647/guests-evacuated-after-hotel-facade-suddenly-collapses

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Filed under Claims, Insurance, Management And Ownership

Hospitality Industry Insurance Risks: Hotels Must Purchase “Additional Terrorism Clause” To Have Losses Covered When Government Classifies Bombing Incidents “Acts Of Terror”

“…(after September 11 attacks) “acts of terror”  were excluded from (regular insurance) policies. They made it an optional add-on that businesses Acts of Terror Insurance Coveragehad to purchase separately to have damage covered that resulted from officially declared acts of terrorism, meaning the government’s categorization of the incident will determine who pays for what…”

The hotels located on or near Boylston Street are still trying to get their feet back under them after the tragedy in Boston, reeling from the lack of business associated with the incident’s aftermath. Hotels are looking to their insurance companies to cover their losses, but, interestingly enough, the payout depends upon whether or not the government officially declares the marathon bombings an “act of terror.”

 According to ABC News, President Obama called the bombings an “act of terror,” but the treasury secretary, attorney general, and secretary of state have yet to speak on the designation, and have set no time frame in which to do so.

“If there is no terror finding, damages would be covered in general under regular property-and-casualty policies,” Robert Hartwig, president of the trade group Insurance Information Institute, told ABC News. If it’s declared an “act of terror,” however, only those who purchased the additional terrorism clause would have their losses covered by insurance.

For more:  http://www.hotelchatter.com/story/2013/5/2/114339/2751/hotels/%22Terrorism_Insurance%22_a_Hot_Debate_as_Boston_Hotels_Still_Struggle_

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Hospitality Industry Cybercrime Risks: Hotel And Restaurant “Connected Point-Of-Sale (POS) Systems” Attacked By New Malware Called “Dexter”; Steals Credit Card Data And Transmits It “Encrypted” Back To Attacker

“…Just before the 2012 festive period, a new piece of malware surfaced and was found in hundreds of POS systems in hotels, restaurants, retailers and private parking providers. The malware was discovered by Israel-based security cybercrime in hotelsfirm Seculert: ‘Dexter’ (which comes from the string ‘BKDR_DEXTR.A’) is a data-theft tool used to target and attack POS systems. The program, which is Microsoft Windows-based, uses common techniques to search the memory of running processes to identify credit-card track data, but with the uniqueness of the attacker having full control…”

Connected point-of-sale (POS) systems – that’s the checkout to you and me – are the most recent targets of the cybercriminal, and a specially-crafted malware, dubbed Dexter, is further indication that now all kinds of connected devices may be vulnerable to attack.

Seculert CTO and co-founder Aviv Raff explains that while the company is as yet uncertain as to who is behind Dexter, the author is fluent in English: Dexter mainly targeted English-speaking countries. The malware was located in 40 different countries, but notably 42 per cent of POS systems targeted were in North America and 19 per cent UK-based. “Instead of going through the trouble of infecting tens of thousands of consumer PCs or physically installing a skimmer, an attacker can achieve the same results by targeting just a few POS systems with specially crafted malware,” Raff says.

The malware injects itself into the iexplore.exe file in Windows servers, through rewriting in the registry key. It then’ pinches sensitive credit-card data from the server, before transferring it through a remote command and control system. Windows-based POS systems are used increasingly in the industry, and according to Seculert’s findings, 51 per cent of targeted POS systems use the outdated Windows XP. The high percentage indicates Windows-based machines that process unencrypted track data are viable targets.

Microsoft Windows XP may be the ‘preferred’ choice for POS systems, especially among smaller retailers who feel that they cannot afford to upgrade, but with the operating system to be discontinued in 2014, the question is over what support will be offered for remaining XP users and if they will be able to handle the upgrade to Windows 7 or 8.

“Dexter only has three purposes in life,” says Trustwave’s security researcher Josh Grunzweig. “To always be running on the victims’ machine, to find any card, or track, data in any running program on the victim, and to communicate with the attacker who is controlling it.”

The latter is what makes the malware stand out and impresses Grunzweig. “I can’t remember the last time I saw a piece of malware that targeted POS systems that had a nice command and control structure to it,” adds Grunzweig.

He explains the hacker maintains control of the attack by using normal communication methods, but with the skill to hide what it was sending by encoding the data. This involved sending out a message to the attacker, by default, every five minutes and also checks the victim to see if there is any track data running every 60 seconds.

The magnetic strip on a credit card contains three tracks and the malware attempts to extract data from memory relating to tracks one and two, containing numeric or alphanumeric data that can be used to clone the card that was used in a transaction. If Dexter finds any of this track data, it alerts the attacker in the next message sent and the process is repeated. The attacker has the control to change the times and install additional malware or even remove Dexter altogether.

“The most unusual thing about Dexter is the small amount of public attention it has received,” says Trustwave’s Josh Grunzweig. “The issues that make POS-specific malware difficult to discuss in the industry also affects the ability of antivirus companies; without samples they are unable to provide detailed protections for specific threats.”

For more:  http://eandt.theiet.org/magazine/2013/03/turn-on-log-in-checkout.cfm

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Filed under Claims, Guest Issues, Liability, Management And Ownership, Privacy, Risk Management, Technology, Theft