Category Archives: Insurance

by | August 18, 2012 · 6:24 am

Hospitality Industry Property Risks: Washington DC Restaurants Damaged In 2011 Flood "Reinvent Themselves" By Rebuilding With "New Concepts"

“…The establishment was hit hard by the flood…the owners used some insurance money to rebuild. But they also took the opportunity to come up with a new concept for their establishment…”

“…(the owners) renegotiated the lease and worked with Washington Harbour so insurance covered 85 percent of the about $5 million needed to rebuild the restaurants…”

Three restaurants at Washington Harbour are preparing to reopen after the spring 2011 flood that covered parts of the K Street complex in 10-plus feet of water. Tony and Joe’s Seafood Palace and Nick’s Riverside Grill are expected to fully open at the end of this week, and Farmers and Fishers plans to reopen as Farmers Fishers Bakers at the end of October. All three closed after an April 2011 storm during which MRP Realty, the company that manages the complex, raised only three-quarters of the floodgates that block the establishments from the Potomac River.

Nick Cibel, whose family owns both Tony and Joe’s and Nick’s Riverside Grill, said the flood was devastating, but he and his relatives have made the best of the situation.

“It was complete destruction at both restaurants, and everything had to be thrown away and rebuilt,” he said. “We are taking full advantage of that by reinventing ourselves. We want to be known by our food, not just the waterfront.”

Both Joe’s and Nick’s have been operating with outside seating and a reduced menu since about a month after the flood, while the interiors have undergone renovations. Tony and Joe’s has an updated design that allows for a wider, unobstructed view of the river. Nick’s Riverside Grill’s square footage has increased by 25 percent, and the restaurant will carry more international cuisine.

For more:  http://www.thegeorgetowndish.com/thedish/flood-damaged-restaurants-set-reopen

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by | August 17, 2012 · 6:48 am

Hospitality Industry Legal Risks: California Hotel Owner Found Guilty Of Violating "Unruh Civil Rights Act" For Discrimination Against Religious Group; $1.2 Million Statutory Damages And $440,000 In Punitive Damages Awarded By Jury To Plaintiffs

“…The jury decided on Wednesday that the hotel and Adaya violated California’s Unruh Civil Rights Act, which bars hotels and other business from discriminating on the basis of sex, race, color or religion…the hotel and owner were also ordered to pay approximately $440,000 in additional punitive damages to the plaintiffs…”

A Muslim hotel owner discriminated against a Jewish group during a Southern California poolside charity event by ordering removal of banners and ousting them from the pool and spa, a jury decided in awarding $1.2 million statutory damages. The suit was filed by Friends of the Israel Defense Forces, whose members had gathered two years ago at Santa Monica’s ocean-view Hotel Shangri-LA, which is owned by Tehmina Adaya. The owner is a Muslim of Pakistani descent.

The event was organized by Platinum Events, a marketing firm that had organized other gatherings at the Shangri-La after a $30-million renovation three years ago.

Workers and security guards at the Art Deco hotel were acting on Adaya’s orders when they told members of the group to get out of the pool and spa and remove banners and literature, according to trial testimony.

In her testimony, Adaya denied ordering a halt to the event for fear that her family would cut off her financing. Adaya inherited control of the hotel from her father, Ahmad Adaya, a real estate tycoon and philanthropist who died in 2006.

For more:  http://www.jewishjournal.com/thenon-prophet/item/additional_440000_in_punitive_damages_imposed_on_hotel_shangri-la_20120816/

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by | August 15, 2012 · 6:59 am

Hospitality Industry Legal Risks: California Hotel Sued By Homeowner Claiming Noise From Events Has Caused Them "Pain And Suffering" And "Diminished Property Value"

“Plaintiffs have been hurt and injured in their health, strength, and activity, sustaining injury to their nervous system and person, all of which injuries have caused, and continue to cause, plaintiffs great mental, physical, and nervous pain and suffering,” said the lawsuit.

The lawsuit seeks an injunction barring the resort from generating noise that disturbs the Mendez family, such as amplified music, and unspecified monetary damages.

A Fairbanks Ranch couple has sued the Rancho Valencia Resort, alleging that noise from resort events has caused them pain and suffering, diminished their property value and violated county noise ordinances.

Angel and Linda Mendez, who live on Avenida Las Perlas, filed their lawsuit in Vista Superior Court on May 22. The lawsuit alleges that the problem has occurred since a group of investors purchased the resort, at 5926 Valencia Circle in April 2010.

“Defendants, and each of them, have occupied, used, and maintained these premises in such a manner that the sound of music, shouting and other accompanying noises generated by means of a loudspeaker, sound amplification system, public address system, or otherwise, during parties hosted by defendants, and each of them, travels well beyond the borders of the defendants’ property and into the Mendez property,” said the lawsuit.

For more:  http://www.ranchosantafereview.com/2012/08/14/lawsuit-regarding-noise-issues-filed-against-resort-in-rancho-santa-fe/

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by | August 14, 2012 · 6:21 am

Hospitality Industry Employment Risks: California Hotel Sued By Former Hostess For "Harassment And Religious Discrimination"

“…Boudlal alleges in a lawsuit filed Monday, that her co-workers began taunting her, calling the Moroccan-born Muslim a “terrorist,” a “camel” and someone who learned how to make bombs at her mosque. She complained to her managers verbally and in writing, she said, with no results…”

Imane Boudlal is suing Walt Disney Corp. in federal court, saying that she was discriminated against and harassed for her religious beliefs. She also alleges that she unfairly lost her job in 2010 after refusing to remove her head scarf at work.

“It’s been hard,” Boudlal said in an interview. “I thought it was just a matter of complaining and a few days, and it wouldn’t affect my life, but it turns out … nothing has been done.”

The lawsuit charges that Boudlal, who is a naturalized U.S. citizen, decided to wear her hijab full time in 2010, about eight months after she began wearing it publicly. She contacted her supervisors at Disneyland to request an exemption to the company’s “look” policy — general appearance guidelines that, according to a Disney website, touch on items ranging from contact lens color and visible tattoos to personal hygiene.

For more:  http://www.latimes.com/news/local/la-me-disney-muslim-lawsuit-20120814,0,2971071.story

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by | August 13, 2012 · 6:24 am

Hospitality Industry Legal Risks: Restaurant Owners Need To Obtain "Product Liability And Completed Operations Insurance" To Cover "Gluten-Free" Menu Items

“…a growing trend toward “gluten-free” menu items at America’s restaurants and catered events is increasing the demand for product liability and completed operations insurance, designed to protect food-service businesses against lawsuits arising from bad reactions to food products…”

The “gluten-free” trend is helping many establishments appeal to millions of Americans who are seeking gluten-free options for a variety of reasons, including gluten sensitivities (claimed by up to 10 percent of Americans, according to the National Institutes of Health) and celiac disease (diagnosed in about 1 percent of the U.S. population, or 3 million people). While offering more options for these customers makes for good public relations, it also opens the door to a new level of potential liability.

While any restaurant could face a lawsuit arising from alleged food poisoning or food allergies, those promising “gluten-free” menu items are at even greater risk of a lawsuit if a customer should choose these options and still have a reaction. Because there are currently no standards that define exactly what constitutes “gluten-free,” some restaurants may be promoting a “gluten-free” product that is prepared in the same area as foods containing gluten, raising the potential for cross-contamination. While many people with sensitivities may not have reactions to small amounts of gluten, others with higher levels of sensitivity could have a severe reaction, raising the potential for lawsuits.

Thankfully, food service businesses — including restaurants, catering businesses, and other food service providers — can protect themselves against the high cost of lawsuits by purchasing a type of insurance known as “product liability and completed operations” coverage. This insurance not only covers lawsuits related to gluten reactions, but also those related to other food allergies, food poisoning, or other injuries or damages caused by the products a restaurant or caterer sells.

For more:  http://www.restaurantnews.com/gluten-free-trend-spurs-demand-for-restaurant-liability-insurance/

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by | August 12, 2012 · 7:05 am

Hospitality Industry Legal Risks: California Hotel Sued By Nine Guests Claiming They Contracted Meningitis From Hotel Pool; Suit Seeks Damages For Premises Liability And Negligence

“…The plaintiffs claim the hotel failed to sanitize the pool, fill it with clean water, use purification chemicals or “obtain proper certification of health & safety codes to reopen pool and water park facilities after pool closure.”

They seek medical costs, damages and punitive damages for premises liability, negligence, gross negligence, public nuisance and loss of consortium.

Nine people claim they contracted meningitis and/or other deadly diseases two years ago from a pool at the Grand Pacific Palisades Resort in Carlsbad. Lead plaintiff Gerald Green claim that during their stay in August 2010 the hotel failed to properly sanitize its family swimming pool. Plaintiff claim that hotel staff told them later that “the pool had been closed due to prior fecal or other form of contamination.”

“Plaintiffs were caused to sustain severe personal injuries, including, but not limited to symptoms of fever, headache, myalgias [muscle pain], vomiting and diarrhea, resulting in diagnoses to include meningitis and aggravated multiple sclerosis,” the complaint states.
Meningitis is a potentially fatal disease caused by inflammation of the protective membranes of the brain and spinal cord. Multiple sclerosis, which causes damage to nerves in the brain and spinal cord, is a debilitating disease with no known cure.

For more:  http://www.courthousenews.com/2012/08/06/49015.htm

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by | August 11, 2012 · 7:24 am

Hospitality Industry Security Risks: Louisiana Hotels' Guest Rooms Burglarized By Thieves Who "Checked For Unlocked Doors"; Suspects Walked Out With Laptops And Electronics

“…(suspects were) walking in the hotel, walking out with the victim’s property…laptops, electronics, iPods, and iPads…cell phones, bags of clothing, jewelry…in some cases thieves got into rooms by checking for unlocked doors…”

After arresting two suspects in a string of downtown hotel burglaries, New Orleans Police confiscated loads of property. Police say rooms at several hotels in the downtown area were burglarized in early July. It was later determined to be the work of the same set of crooks.

“I noticed my door in my room even if I just walk out it doesn’t close,” one hotel guest said. Carroll says an anonymous tip from the public led detectives to arrest this modern day Bonnie and Clyde.

A search warrant executed at her home turned up loads of evidence.

For more:  http://www.abc26.com/news/local/wgno-property-stolen-from-hotels-returned,0,6918670.story

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by | August 10, 2012 · 6:41 am

Hospitality Industry Crime Risks: Wisconsin Hotel Employee Arrested And Charged With 65 Counts Of Credit Card Fraud And Identity Theft

“…(the former employee) used customer credit card numbers to pay tuition and insurance bills. An alert customer notified police and an investigation led to his arrest…”

 A 19-year-old who worked at a hotel in Medford is facing 65 credit card theft charges. He worked at the AmericInn until late last year, and was accused of using the card numbers that hotel guests had put on-file to cover room-expenses. Nicholas Johnson is facing 59 counts of identity theft, and six counts of fraudulently using a credit card for more than $10,000. He’ll be back in court on August 14th.

Police began looking for things in common among several reports of fake credit card charges. They focused on Johnson when several of the card-holders who’d been ripped off had stayed at the same hotel. Johnson hasn’t worked there since late last year.

For more:  http://wsau.com/news/articles/2012/aug/10/hotel-worker-charged-in-credit-card-fraud-scheme/

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by | August 9, 2012 · 6:46 am

Hospitality Industry Insurance Risks: Hotel And Restaurant Owners Face "Greatest Cost Increases" From Healthcare Reform Laws; Must Cover Employees Currently Not Eligible

“…Many retail and hospitality industry employers face a “double whammy” due to the upcoming health care reform law requirements…employers that do not offer qualified coverage face a $2,000 assessment per full-time employee—those working at least 30 hours a week—starting in 2014…”
Employers in the retail and hospitality industries face the greatest cost increases when provisions of the healthcare reform law imposing financial penalties on employers that do not offer qualified coverage go into effect in 2014, according to a survey released Wednesday.Forty-six percent of employers in the retail and hospitality industries and 40% of employers in the health care services industry expect health care cost increases of at least 3% due to health care reform law requirements, according to the Mercer L.L.C. survey of 1,203 employers.

Some will face stiff cost increases as they must extend coverage to employees who are not eligible for coverage currently. In other cases, the coverage they provide, such as through what are known as mini-med plans, will not meet 2014 standards. That includes a ban on annual dollar limits on essential benefits as laid down by the Patient Protection and Affordable Care Act.

Read more: Retail, hospitality industries face big reform costs | Modern Healthcare http://www.modernhealthcare.com/article/20120808/INFO/308089995#ixzz233mGPu1M

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by | August 8, 2012 · 7:09 am

Hospitality Industry Property Risks: Michigan Restaurant "Grease Fire" Spreads Through Vent To Roof, Damaging Building And Other Businesses

“…a vent behind the restaurant was fully engulfed in fire…It went from smelling smoke to the roof being engulfed in flames…”  

A grease fire that started in Hunan House Chinese restaurant destroyed the building and several others in the same strip mall Monday afternoon. There was heavy smoke and visible flames when fire crews arrived on the scene. The roof on Hunan House collapsed shortly after.  Firefighters spent several hours battling the blaze, which also spread to other businesses including Central Barbershop and MetroPCS.

The Central Barbershop owner, Jon Dancer, told The Morning Sun that he was in mid-haircut when his business started smelling like smoke. Ali L. Bazzi said he closed the cellphone store quickly and went outside, where he watched the fire “spread like crazy.”

For more: http://www.mlive.com/news/saginaw/index.ssf/2012/08/grease_fire_that_started_in_mo.html

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