Category Archives: Insurance

by | December 6, 2012 · 8:01 am

Hospitality Industry Health Risks: Restaurant Dishes And Silverware Cleaning And Sanitation Methods "Fall Short Of Eliminating Norovirus" According To Research Study

“Norovirus is the leading cause of epidemic gastroenteritis and the major cause of foodborne illness in the United States…proper sanitation and handling remain the single biggest factor that can prevent cross-norovirus outbreak hotelscontamination of food and dishware at food service establishments…better agents or methods (are needed) to significantly reduce the presence of norovirus…”

Restaurant dishes and silverware may be an overlooked place where people can catch stomach viruses, according to a new study published December 5, 2012 on the PLOS One website.

While the current industry guidelines for cleaning dishware used in public settings are effective at neutralizing bacteria, researchers at The Ohio State University found that they appear to fall short of eliminating norovirus.

Norovirus is the leading cause of epidemic gastroenteritis and the major cause of foodborne illness worldwide, responsible for at least 50% of all gastroenteritis outbreaks in the United States.

For more:  http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0050273#s5

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by | December 5, 2012 · 7:34 am

Hospitality Industry Property Risks: California Restaurant Kitchen Fire Caused By "Commercial Gas Grill" Igniting Wood Inside Wall; Repairs Estimated At $10,000

Restaurant Fire

“…Firefighters were hampered by multiple concealed spaces caused by past remodeling. Firefighters located the seat of the fire in the wall and extinguished it with a small amount of water, but found that the fire had traveled through the wall and in to ceiling spaces between layers of roofing materials above…”

Humboldt Bay Fire responded to a reported structure fire at Pho Thien Long Restaurant, 615 F St. Upon arrival fire personnel were directed to the kitchen area where light smoke was seen coming from a hole in a wall and the wall was extremely hot to the touch. Fire personnel directed restaurant customers and staff to exit the building. Power and gas was secured to the building as firefighters began cutting in to the wall to locate the fire.

Humboldt Bay Fire spent about 90 minutes ensuring that any remaining pockets of fire had been extinguished. The restaurant was turned back over to the business owner. The fire caused about $10,000 damage, and the business will need extensive repairs before it will be able to reopen. The cause of the restaurant fire appeared to be accidental. The fire was caused by heat radiated from a commercial gas grill igniting the wood in the wall.

For more:  http://www.times-standard.com/breakingnews/ci_22121723/updated-pho-thien-long-restaurant-will-need-extensive

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by | November 30, 2012 · 7:28 am

Hospitality Industry Employment Risks: Arizona Restaurant Settles EEOC "Pregnancy Discrimination" Lawsuit For $15,000; Servers Removed From "Sunday Football Schedule"

“…The EEOC’s lawsuit…charged that Sandbar instituted a policy of removing pregnant women from its Sunday schedule at its Peoria restaurant in an attempt to allegedly satisfy its male Sunday football EEOCcustomers… it believed its male customers did not wish to see pregnant women while they watched Sunday football games. Working on Sundays during football season was the most or one of the most lucrative shifts during the week for the pregnant employee…”

A Peoria, Ariz., restaurant will pay $15,000 and furnish other relief to settle a pregnancy discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The EEOC had alleged that West Sand, LLC, doing business as Sandbar Mexican Grill, unlawfully removed a pregnant employee from working on Sundays during football season because she was pregnant.

According to the EEOC, pursuant to this policy, Sandbar removed a pregnant woman from its lucrative Sunday schedule, causing her a significant loss of income. Sandbar denied the discrimination.

Sandbar Mexican Grill will pay $15,000 to the female employee to resolve this EEOC case. Under the consent decree settling the suit, Sandbar also must also (1) provide anti-discrimination training for all employees who work at its Peoria location; (2) review and revise, if necessary, its policies to ensure they prohibit sex and pregnancy discrimination as well as retaliation and ensure a strong and clear commitment to a workplace free of such bias; (3) investigate allegations of sex discrimination, pregnancy discrimination and retaliation promptly, fairly, reasonably, and effectively and ensure that appropriate corrective action is taken; and (4) post a notice that sex and pregnancy discrimination -or retaliation for complaining about it – is unlawful.

“Pregnancy discrimination remains a persistent problem in the 21st-century workplace,” said Mary Jo O’Neill, regional attorney of the EEOC’s Phoenix District Office. “Employers cannot disadvantage the terms and conditions of a pregnant employee’s work to satisfy an assumed customer preference about the physical appearance of employees, which is likely untrue in any event.”

EEOC District Director Rayford Irvin added, “The EEOC will continue to be vigilant in rooting out pregnancy discrimination. This type of unlawful exclusion is never a winning game plan.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-28-12a.cfm

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by | November 27, 2012 · 6:44 am

Hospitality Industry Property Risks: Florida Hotel Room Fire Caused "Box On Top Of Stove Burner"; Water Damage From Sprinkler System

“…someone had placed a box on top of a stove burner and then turned the burner on. The box caught fire and activated the hotel’s sprinkler system, which put out the fire…the sprinkler system drenched the top floor and water seeped down to the first floor, which could have compromised the hotel’s electrical systems…”

The Value Place hotel at the corner of Racetrack Road and Eglin Parkway was evacuated after a small fire started in a room on the second floor about 4:20 p.m. Monday.

Firefighters made sure everyone was cleared out of the hotel and then stayed at the scene until about 9 p.m. to make sure there were no immediate electrical issues that could start another fire.

The hotel’s occupants were sent to other hotels in the area overnight until an electrician can come today to make sure the electrical system is working properly.

Most of the damages the hotel sustained were from the sprinkler water, although there was a small amount of damage from the fire, Wagner said.

For more:  http://www.nwfdailynews.com/local-news/hotel-evacuated-after-fire-1.55276

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by | November 26, 2012 · 1:41 pm

Hospitality Industry Security Risks: Recent Texas Hotel Room Robberies Linked To "Electronic Lock Hacking"; Thefts Involving Digital Devices Expected To "Explode Nationally"

“…the Houston Hyatt may not be the only site hit with the Onity hack. An alert published by the insurance firm Petra Risk Solutions in October claimed that “several” hotels in Texas have had their locks opened with Brocious’ technique. Todd Seiders, a former Marriott security director who now works as director of risk management at Petra, says he spoke with the general manager of one of those hotels, who knew of at least three Texas hotels affected in total…”

“…hotels with Onity locks need to either shell out for Onity’s circuit board fix or at least block access to their locks’ ports, says Todd Seiders of Petra Risk Solutions–he estimates that more than 80% of his customers have implemented a fix since August, but says that many more hotels around the world may not have been so careful…”

Whoever robbed Janet Wolf’s hotel room did his work discreetly. When Wolf returned to the Hyatt in Houston’s Galleria district last September and found her Toshiba laptop stolen, there was no sign of a forced door or a picked lock. Suspicions about the housekeeping staff were soon ruled out, too—-Wolf says the hotel management used a device to read the memory of the keycard lock and told her that none of the maids’ keys had been used while she was away.

Two days after the break-in, a letter from hotel management confirmed the answer: The room’s lock hadn’t been picked, and hadn’t been opened with any key. Instead, it had been hacked with a digital tool that effortlessly triggered its opening mechanism in seconds. The burglary, one of a string of similar thefts that hit the Hyatt in September, were real-world cases of a theoretical intrusion technique researchers had warned about months earlier—one that may still be effective on hundreds of thousands or millions of locks protecting hotel rooms around the world.

Last month Houston police arrested 27-year-old Matthew Allen Cook and charged him with theft in a September 7th break-in at the Hyatt House Galleria. Police also listed Cook as a suspect in the theft from Wolf’s room four days later and that of another guest at the hotel. Cook, who has a prior history of arrests for thefts and burglary, was identified when an HP laptop stolen from one of the hotel rooms was found in a local pawn shop, where staff helped police to identify him.

For more:  http://www.forbes.com/sites/andygreenberg/2012/11/26/security-flaw-in-common-keycard-locks-exploited-in-string-of-hotel-room-break-ins/?goback=.gde_76056_member_189780979

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by | November 25, 2012 · 5:47 pm

Hospitality Industry Property Risks: Kansas Restaurant Fire Starts In Grease Fryers And Spreads To Attic; $150,000 In Structural And Contents Damage

“…The fire started in the grease fryers area, quickly got into the building’s attic area…of the estimated $150,000 loss, $100,000 was structural damage, the other $50,000 with the building’s contents…”

A grease fire Sunday afternoon caused an estimated $150,000 in damage to a Mexican-food restaurant on the city’s west side. Topeka Fire Department crews were sent about 3:15 p.m. to the Taco John’s restaurant, 1015 S.W. Wanamaker, on a report of a fire.

Capt. Greg Degand, acting battalion chief for the Topeka Fire Department, said at the scene that the initial call indicated the fire was under control. Degand, who was first on the scene, said he saw heavy smoke coming out of the Taco John’s flue area as he approached the restaurant.

However, when he entered the building, Degand said he saw flames in the kitchen area extending from the floor to ceiling. Because grease was involved in the fire, crews at first used a dry chemical extinguisher to get the blaze under control.

For more:  http://cjonline.com/news/2012-11-25/taco-johns-fire-causes-150000-damage

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by | November 22, 2012 · 7:19 am

Hospitality Industry Workers' Compensation Insurance Risks: Tennessee Supreme Court Awards Restaurant Manager Benefits At "Six Times His Medical Impairment" From Electrocution Injuries

“…The Tennessee Supreme Court held that a manager was entitled to benefits at the statutory maximum of six times his medical impairment…the manager was denied a meaningful return to work when he was terminated in retaliation for filing his claim. The manager’s age, education, training, work experience, and limitations warranted the six-times multiplier…”

A co-manager for a fast food restaurant was repairing a heating element used to keep food warm. Someone plugged the heating element into an electrical outlet. An electrical shock caused the manager to lose consciousness. He suffered from burns on his hands, chest pains, headaches, and memory loss. He repeatedly asked his supervisor to pay his medical expenses and authorize medical care for his symptoms. The district manager said he would “take care of it,” but the bills remained unpaid. The manager filed a workers’ compensation claim, and the restaurant was fined for failing to timely report the incident. Days after the claim was filed, his supervisor “vulgarly expressed his anger” about the claim. Within weeks, the manager, who had never received a reprimand, received two reprimands and was later terminated.

A neurologist diagnosed the manager with a migraine condition and epilepsy and opined that the conditions were caused by the electrical shock. The neurologist found that he reached maximum medical improvement with a 10 percent impairment to the body as a whole. A vocational expert opined that the manager suffered a 65 percent vocational disability based on his age, limitations, work history, and the local labor market. The manager was unable to find gainful employment other than occasional “odd jobs.” The Tennessee Supreme Court held that he was entitled to benefits at the statutory maximum of six times his medical impairment.

The court rejected the restaurant’s argument that the maximum multiplier possible was meant to punish it for mishandling the claim rather than an assessment of disability.

For more:  http://www.riskandinsurance.com/story.jsp?storyId=533352818

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by | November 20, 2012 · 7:22 am

Hospitality Industry Legal Risks: Colorado-Based Restaurant Group Will Defend Itself Against Class-Action Lawsuit Alleging Overtime Violations; Company Maintains That Managerial Salaried Employees Are "Apprentices"

“…The class-action complaint…says Chipotle misclassified its “apprentices” as managerial salaried employees who don’t qualify for overtime pay. The suit contends apprentices earn salaries of $40,000 but frequently work more than 40 hours a week and often perform the duties of hourly workers, including cooking and filling orders…”

Chipotle Mexican Grill Inc. says a lawsuit alleging the Colorado- based company has failed to pay overtime to hundreds of employees is frivolous.

Chipotle spokesman Chris Arnold said the restaurant chain carefully defines the roles in its restaurants and that the apprentice position is “clearly” a managerial role ineligible for overtime, under state and federal laws.

The lawsuit seeks back pay and damages. Chipotle has about 1,350 restaurants.

For more:  http://www.insurancejournal.com/news/west/2012/11/19/271081.htm

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by | November 19, 2012 · 1:18 pm

Hospitality Industry Property Risks: Superstorm Sandy Increases Interest In Commercial Flood Insurance; 40% Of Small Businesses Never Reopen After Water Damage From Disasters

Under the NFIP, non-residential businesses can purchase up to $500,000 in building and $500,000 in content coverage, while residential businesses can purchase up to $250,000 in building and $100,000 in content coverage. Marsh’s Flood Service Center can place up to $30 million in excess of NFIP flood insurance, including business interruption, with A-rated insurance capacity.

According to NFIP, almost 40 percent of small businesses never reopen following a disaster because of water damage. Over the past five years, the average commercial flood claim has been about $75,000.

Interest among businesses in purchasing flood insurance coverage from the National Flood Insurance Program (NFIP) is increasing in the wake of Superstorm Sandy’s heavy rain, record storm surge, and resulting widespread flood damage, according to insurance broker Marsh.

Although most companies purchase commercial flood insurance through the private market, more are now inquiring about purchasing additional coverage through the NFIP. When used in tandem, NFIP coverage can mitigate or “buy down” large deductibles associated with commercial flood policies or simply provide additional coverage.

For more:  http://www.claimsjournal.com/news/national/2012/11/18/217658.htm

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by | · 7:26 am

Hospitality Industry Legal Risks: Michigan Hotel Sued By EEOC For "Terminating Pregnant Housekeeper"; Employers May Not Exclude Pregnant Women Based On Their "Concerns About Safety Of Unborn Child"

“…Ramin fired a housekeeper shortly after it learned of her pregnancy. The company stated that it could not allow her to continue to work as a housekeeper because of the potential harm to the development of her baby…”

The U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit today charging that Ramin, Inc., a Comfort Inn & Suites franchise owner in Taylor, Mich., violated federal law when it terminated a pregnant housekeeper because of her pregnancy.

Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, protects female employees against discrimination based on pregnancy, and the Supreme Court has expressly rejected the notion that an employer may exclude pregnant women from employment based on its own concerns about the safety of the unborn child.

The EEOC seeks injunctive relief to prevent Ramin from discriminating against pregnant employees or applicants in the future, as well as monetary relief on behalf of the victim.  The EEOC filed suit after first attempting to settle the case through its conciliation process.

“Pregnancy discrimination is rarely subtle,” said Lauren Gibbs Burstein, attorney in the EEOC’s Detroit Field Office.  “Employers may not bar pregnant employees from work because of outdated myths or stereotypes.  The EEOC will vigorously defend the rights of pregnant workers to provide for their families by remaining employed.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-13-12c.cfm

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