Category Archives: Insurance

by | October 25, 2012 · 6:24 am

Hospitality Industry Property Risks: Iowa Restaurant Kitchen Fire Starts In "Under-The-Counter Appliance"; $40,000 In Structural And Equipment Damage

“…The cause…was believed to derive from a small under-the-counter appliance in the kitchen… total assessed damage is around $40,000, half in structural damage and another $20,000 in restaurant contents, including cooking equipment and televisions…”

A Wednesday morning fire caused an Iowa City late-night Greek-American restaurant to close suddenly. According to Iowa City Fire Department Battalion Chief Brian Greer, a small kitchen fire began in Mega Bite at the Towers apartment complex at 335 S. Gilbert St. at approximately 10:08 a.m.

“We’re really grateful the sprinkler system was in place,” Greer said. “It took less than 15 minutes for the fire to be out.”

The building, owned by Michael’s Properties, which owns several other buildings downtown, is worth well over $4 million and the damage was mostly contained to Mega Bite, Greer said.

Minor water and smoke damage resulted in the apartments on the first floor as well.

For more:  http://www.dailyiowan.com/2012/10/25/Metro/30543.html

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by | October 24, 2012 · 6:12 am

Hospitality Industry Legal Risks: Illinois Hotel Guest Files "Negligence Lawsuit" After Stepping In "Drainage Hole" In Parking Lot; Seeks $50,000 In Damages For Medical And Court Costs

“…it (was)…difficult to see a drainage hole in the parking lot. When he stepped in the hole, Wright says he tore his right meniscus and will need to have a full knee replacement in the next few years to repair the injury…”

An O’Fallon hotel is being sued after one if its guests allegedly hurt his knee when he stepped in a hole in the hotel’s parking lot. Samuel Wright filed a lawsuit Oct. 5 against Kingston Hotel Group LLC in St. Clair County Circuit Court.

According to the petition, Wright and his family were staying at the Candlewood Suites in O’Fallon in July 2011. Wright says he left the hotel through the west exit door to go to his car in the parking lot. The surface of the parking lot was exceptionally dark, Wright claims, because of some asphalt sealant the hotel had applied to it.

Wright accuses Kingston Hotel Group, the owner of the hotel, of negligence for allegedly failing to warn guests of the potential hazard in the parking lot. He asks for more than $50,000 in damages for medical expenses and court costs.

For more: http://madisonrecord.com/issues/366-personal-injury/247261-candlewood-suites-in-ofallon-sued-over-customers-trip-in-parking-lot

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by | October 23, 2012 · 6:32 am

Hospitality Industry Property Risks: North Carolina Hotel Suffers Extensive Water Damage After "Prank Phone Call" Causes Guest To Activate Fire Sprinkler

“…The caller told the guest who answered to activate the fire sprinkler in the room because there was a gas leak. After the guest followed the directions, the caller hung up…”

For the second time this year, a Leland hotel has suffered extensive damage because of a prank phone call. Leland Police say early Sunday morning, someone called the front desk of the Best Western off US 17 and asked to be transferred to a room.

The same thing happened to another guest in the hotel back in May. That prank flooded the first two floors of the hotel and caused thousands of dollars in damage.

Leland Police detectives believe this prank may be only one of many nationwide, as was the case back in the spring. Detectives are investigating any and all leads and plan on possible collaboration with federal officials to aid in this investigation.

For more:  http://www.wwaytv3.com/2012/10/22/leland-hotel-damaged-prank-call-for-second-time

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Filed under Crime, Guest Issues, Insurance, Liability, Maintenance, Management And Ownership, Risk Management, Training

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by | October 22, 2012 · 6:17 am

Hospitality Industry Insurance Risks: Restaurant Operators Face "Financial Hit" From New Health Insurance Benefit Programs That Take Effect In 2014

Under the Patient Protection and Affordable Care Act, companies with 50 or more full-time eligible workers must either provide basic coverage by Jan. 1, 2014, or face fines of $2,000 per employee. A full-time employee is defined as one averaging 30 or more hours per week over a 60-day period.

“We will have a financial hit,” said CEO Victor Ansara. “We first thought it was going to be $300,000, but maybe only $100,000 to $200,000. We just don’t know how many of our employees in their 20s, who are pretty healthy, will want coverage.”

Farmington Hills-based Ansara Restaurant Group, which operates 22 Red Robin outlets and five other restaurants in Michigan and northern Ohio, is bracing financially to expand its health insurance benefit program by as many as 665 full-time workers to accommodate expected federal health care reform.

The first 30 employees are excluded from the penalty. For example, an employer with 75 employees would pay the penalty for 45 workers, or $90,000.

Eligible employees that reject insurance coverage by their employer would have to pay a $95 tax, or 1 percent of income, whichever is greater, in 2014. The tax rises to $325 in 2015 and to a maximum of $695, or 2 percent of income, in 2016. Family coverage taxes would be about three times higher in those years. The penalty is estimated to raise $6.9 billion in 2016, said the Congressional Budget Office.

Ansara said his company covers about 130 management staff with various plans from Blue Cross Blue Shield of Michigan and Blue Care Network. Only about 35 of its estimated 350 eligible hourly workers have opted for the coverage, he said.

“It is very difficult to plan when we don’t know what our health care costs are going to be in 2014,” he said. “To comply with the regulation, we have to offer coverage to all full-time eligible employees.”

Of Ansara’s 2,300 employees, up to 700 hourly workers could become eligible for health insurance coverage, he said.

For more: http://www.crainsdetroit.com/article/20121021/SUB01/310219956/red-robin-group-among-restaurants-bracing-for-health-insurance-reform#

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by | October 21, 2012 · 6:57 am

Hospitality Industry Property Risks: Mississippi Hotel Fire Causes $4 Million In Damage As Roof And Most Of Third Floor Rooms Destroyed; Heavy Water Damage To Lower Floors

“…Three-quarters of the roof is gone, along with the tower over the elevator shaft, which collapsed… Most of the third floor rooms were damaged or destroyed by fire and the lower floors inundated by water from the fire hoses…”

Federal investigators have joined the investigation into Wednesday’s fire at a Howard Johnson Inn on the Mississippi Gulf Coast.

The fire burned through the roof of the three-story hotel, doing an estimated $4 million in damage. The Bureau of Alcohol, Tobacco and Firearms will help state and local officials determine the origin and cause of the fire, says Joel Lee, who leads the ATF’s Gulfport field office.

Four Jackson County fire departments responded to the blaze at the hotel Wednesday, which is in the unincorporated St. Martin community north of Ocean Springs. The fire burned for more than three hours.

Officials said the fire spread because the older building lacked the fireproofing required by building codes in newer structures. Another fire damaged the hotel in 2010.

For more:  http://www2.wjtv.com/news/2012/oct/20/federal-agency-joins-hotel-fire-investigation-ar-4794171/

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by | October 20, 2012 · 6:38 am

Hospitality Industry Security Risk Management: Hotels Face Increased Risk Of "Guestroom Burglaries" From Electronic Door Lock Hacking Devices

By Todd Seiders, CLSD

http://www.petrarisksolutions.com/

As many of you may have heard, the computer “hacking” community has made a small device that can open Onity hotel guestroom door locks. It costs approximately $50 in readily available electronic parts, and the device has been concealed in an iPhone case and a Dry Erase marking pen body (yes, the felt tipped dry erase pen used on whiteboards).

The hacking device plugs into the door locks, and opens the door. It shows up on the lock readout as a “portable programmer” use, but no serial number for the portable programmer is noted.

**We are now experiencing actual guestroom burglaries and guest thefts by use of these devices in Texas. Multiple rooms have been hit at several hotels. An arrest was made in Houston on some of these burglaries, so I hope to have additional info on that very soon.

**I am also receiving reports from hotels in Florida that a similar “hacker” has been seen carrying a laptop computer and using a key card (possibly connected to the laptop) to open guestroom door locks. There have been several guestroom burglaries and actual witnesses who saw the suspect with his laptop, using a key card to access locked guestrooms.

Please TRAIN and notify your hotel staff that these burglaries are spreading across the country. Hotel staff should be vigilant while they are on the guest floors and paying attention to guests walking through hallways. Take time to watch guests walking through your hallways to ensure they are going to a room and entering it. Be very suspicious of someone carrying a laptop or small bag wandering the hallways. Greet guests and ask them if they need assistance. If they appear nervous, or cannot tell you what room they are looking for, escort them to the lobby, or escort them to where a security camera is, so you can get a picture of them. If they leave the hotel, follow them and try and write down a vehicle license plate on their vehicle. Your hotel staff has to be more active on your guest floors when they see people walking around.

Onity locks is not accepting liability for the defect in their hotel locks, and have offered a software fix for the problem. Onity is charging hotels to supply the fix.

I’m sorry to say that this burglary issue will only get bigger as the hackers share their tales and their build your own device details in the future.

I’ll keep you posted on this topic…..

Todd Seiders, CLSD
Director of Risk Management

Email: ToddS@PetraRiskSolutions.com
Phone: (800) 466-8951 ext 207

Direct: (562) 623-0976
Fax: (800) 494-6829
Lic #0817715

 

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by | October 19, 2012 · 6:46 am

Hospitality Industry Legal Risks: Florida-Based Restaurant Group Faces Five Separate "Federal Labor Law Class-Action Lawsuits"; Employees Required To Work "Off The Clock" And Skip Required Breaks

“…Lawsuits filed by the Mexican-American Legal and Education Fund accuse Darden Restaurants—which owns the Capital Grille, Red Lobster and Olive Garden chains—of violating state and federal labor laws…the suits claim the restaurants regularly ask employees to work off the clock, skip legally required breaks and report to work when sick…”

The world’s largest full-service restaurant ownership company faces five separate class-action lawsuits filed by a group that works to protect restaurant workers’ rights.

The litigation began as a single class-action lawsuit filed in federal court in Chicago, with state class-action claims covering workers in Illinois, as well as California, Florida, Maryland and New York. Eventually, the lawsuit was severed into five jurisdictions due to the large size of the classes and the complexity of the various state claims. Five regional U.S. District Courts will hear the cases.

The lawsuits were initiated by the Restaurant Opportunities Cen­­ters United, which seeks to improve wages and working conditions for low-wage restaurant workers.

For more:  http://www.businessmanagementdaily.com/33010/worker-advocates-cook-up-five-suits-against-restaurant-group

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by | October 18, 2012 · 6:12 am

Hospitality Industry Health Risks: North Carolina Restaurant Settles "Food Contamination" Class-Action Lawsuit For $375,000; Hundreds Had To Be Vaccinated For Hepatitis Virus

“…the lawsuit alleged that the restaurant chain exposed customers to potentially contaminated food or people, cost them wages and medical expenses, and caused fear and physical pain…a $375,000 fund has been set up by the restaurant’s parent company… to settle a class-action lawsuit…”

A lawsuit has been settled involving hundreds of people who had to be vaccinated after eating at a Fayetteville restaurant last year. The Fayetteville Observer reported those who were immunized after eating at the Olive Garden restaurant are eligible for payments of up to $250.

Hundreds of people got vaccinations after learning that one of the restaurant’s workers had tested positive for the virus, which causes liver inflammation.

Florida-based GMRI denied any wrongdoing but said it wanted to settle to end the litigation.

For more:  http://www.northjersey.com/news/health/174592761.html

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by | October 17, 2012 · 5:58 am

Hospitality Industry Property Risks: North Carolina Hotel Fire Caused By "Electrical Short In Air Conditioner"; 18 Rooms And $15,000 In Damage

“…Officials said 18 rooms were destroyed after an electrical short in an air conditioner unit caused a fire in a room on the third floor…about $15,000 in property damage and about $30,000 in content damage was reported…”

Fire officials said 18 adults were displaced and one injury was reported after a hotel fire Tuesday night in Winston-Salem. Authorities said 24 firefighters from various units had the situation under control within about 30 minutes.

Authorities said the Red Cross responded and the victims were moved to the Quality Inn in Winston-Salem and the Village Inn in Clemmons. Details on the reported injury were not released.

For more:  http://myfox8.com/2012/10/17/officials-18-adults-displaced-in-winston-salem-hotel-fire/

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by | October 16, 2012 · 6:02 am

Hospitality Industry Safety Risks: Texas Hotel Sued For "Negligence" After Man Slips And Falls Down Flight Of Stairs; Failure To Post Warning Of Wet Carpet

“…According to the lawsuit, the hotel had washed, shampooed or cleaned its carpets prior to Steele’s arrival and left them in a wet and slippery condition without any warning to Steele…”

The defendant is accused of negligence for failing to inspect its premises to be sure that they were free of unreasonably dangerous conditions, dry its floors after cleaning, limit access to areas in which the floors were not yet dry, warn its invitees of the existence of the wet floors, select and hire competent contractors in such a way as to ensure that they were not creating an unreasonable risk of harm to invitees.

A Louisiana man has filed a lawsuit against the owners of a Comfort Inn claiming that they failed to warn him that the carpet was wet, which caused him to fall down an entire flight of stairs. Walter Steele filed suit against Laxmi Lodging Inc. on Oct. 12 in the Eastern District of Texas, Marshall Division.

The incident occurred on Sept. 9, 2012 as Steele was attempting to exit a Comfort Inn in Palestine, Texas, owned by the defendant by the way of the staircase when his foot slipped on the wet flooring causing him to fall down an entire flight of stairs and onto the concrete floor.  The fall caused Steele serious and permanent disabling injuries to his back and spine.

The plaintiff is seeking damages for medical expenses, lost earnings, physical impairment, pain, suffering, mental anguish, and lost earning capacity.

For more:  http://setexasrecord.com/news/275705-hotel-owner-sued-after-patron-falls-down-flight-of-stairs

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