Category Archives: Insurance

by | June 11, 2012 · 6:30 am

Hospitality Industry Legal Risks: Texas Hotel Still Replacing Glass Panels One-Year After Falling Glass Injured Guests In Pool; "Negligence Lawsuit" Still Pending

“…they have been traumatized by the incident and seek recovery for damages, assert negligence on the part of the hotel, and ask for reasonable compensation for their pain, disfigurement, loss of earnings, loss of earning capacity, physical impairment, medical care and expenses and mental anguish…”

Crews are currently still replacing the more than 1,000 glass panels on the hotel.

Two people who were in the swimming pool at the W Hotel on June 10 when panels of glass fell from the building, shattered and then rained down on them have  filed a lawsuit against the W and Starwood Hotels and Resorts. Susan Davis and Prashanth Magadi  filed the complaint , represented by attorney Sean Breen, in Travis District Court. The two were injured and are still removing glass from their bodies when they filed the lawsuit in late June 2011. Davis said she still doesn’t know the extent of her injuries yet but remembers clearly that day at the pool on June 10.

The plaintiffs are asking that safety measures be put in place to prevent more falling glass, along with asking that covered walkways be built at the affected parts of the building.

The lawsuit alleges that the hotel had been warned of the problem before the June 10 incident, but failed to respond. In May, a similar incident happened at a  W Hotel in Atlanta where two women fell out of the hotel when glass failed and fell out of their hotel room, according to the lawsuit.

The lawsuit was filed the day after a second incident of falling glass happened at the W,  when three panels fell to the street below on June 27. No one was injured, though cars were damaged.

For more:  http://www.kxan.com/dpp/news/local/austin/one-year-later-few-answers-at-w-hotel

Comments Off on Hospitality Industry Legal Risks: Texas Hotel Still Replacing Glass Panels One-Year After Falling Glass Injured Guests In Pool; "Negligence Lawsuit" Still Pending

Filed under Claims, Guest Issues, Injuries, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Tagged as , , , ,

by | June 10, 2012 · 6:45 am

Hospitality Industry Property Risks: Ohio Hotel Fire Started In "Mulch Pit" On Side Of Building; $2 Million In Structural Damage, $200,000 Contents

 “…a mulch bed on the side of the building caught fire, sending flames through a stairwell and into the attic…eight rooms on the third floor of the Microtel were directly affected and it took about three hours to control…”

Fire officials have determined the origin of a Jackson Township hotel fire on May 25 that shut down parts of Interstate 77. The State of Ohio Fire Marshal said a mulch bed on the side of the building caught fire, sending flames through a stairwell and into the attic. The exact cause of the fire remains under investigation and officials have not located the ignition source, the fire department said.

Last month, NewsChannel5 consumer advocate Jenn Strathman reported that weather was to blame for an increase in mulch fires in northeast Ohio. In Lorain County, Avon Fire Chief Frank Root III said they have seen 12 mulch fires in 2012, compared to just one by this time last year.

Fire officials said eight rooms on the third floor of the Microtel were directly affected and it took about three hours to control the blaze. Fire departments from across the area responded to the scene and one firefighter was treated for smoke inhalation.

The incident caused about $2 million in damage to the building and another $200,000 on contents.

Read more: http://www.newsnet5.com/dpp/news/local_news/oh_stark/fire-officials-say-mulch-was-origin-of-jackson-township-hotel-fire#ixzz1xOv21qxJ

2 Comments

Filed under Fire, Insurance, Liability, Management And Ownership

Tagged as , , , ,

by | June 9, 2012 · 1:13 am

Hospitality Industry Health Risks: Texas Hotel Temporarily Closed After Legionnaires' Disease Diagnosis

The SuperMedia Hotel and Conference Center, a hotel near the Dallas airport, closed temporarily this week after a guest was diagnosed with Legionnaires’ Disease. It is not yet known if the guest contracted the disease at the hotel or elsewhere, but the hotel closed temporarily while tests are being conducted.

“A guest at the hotel attached to SuperMedia’s offices was treated for Legionnaires’ disease and released from a nearby hospital. After the one case was initially reported to us, we took the precautionary step of asking our employees to work from alternate locations while the appropriate tests were being conducted. No other cases have been reported and we don’t know that this case originated from the hotel,” Andrew Shane, a  SuperMedia spokesperson, told Food Poisoning Bulletin.

Legionnaires’ Disease is a lung infection caused by Legionella bacteria which got its name when a number of people attending a 1976 American Legion convention in Philadelphia came down with the disease, according to the Centers for Disease Control and Prevention (CDC).

For more:  http://foodpoisoningbulletin.com/2012/legionnaires-case-shuts-down-dallas-hotel/

Comments Off on Hospitality Industry Health Risks: Texas Hotel Temporarily Closed After Legionnaires' Disease Diagnosis

Filed under Guest Issues, Health, Insurance, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , ,

by | June 7, 2012 · 6:25 am

Hospitality Industry Property Risks: Wisconsin Restaurant Kitchen Fire Spreads To Second Floor Storage Area; Significant Water And Smoke Damage

“…some employees at closing time discovered a fire in the kitchen and attempted to put it out with extinguishers…the fire extended into the second floor that was mostly used for storage and contained a lot of combustibles…there was water damage to the basement and smoke and fire damage throughout the two-story structure….”

Firefighters arrived at Carvetti’s, 642 W. Main St. at 1 a.m., “they encountered heavy smoke and a heavy fire load on the second floor. The fire was pretty heavily involved,” said Capt. Mark Moller-Gunderson. The cause and origin of the fire is under investigation.

Lake Geneva Police Department Detective Ed Gritzner said the task force continues to investigate the fire, but “we don’t think any criminal activity is involved. We just need to talk to a few more employees to see what they have to say since the kitchen appears to be where the fire originated,” he said.

In fighting the blaze, fire crews made an aggressive interior attack while the ladder company opened the roof. Other firefighters chased down fire pockets before fire crews conducted overhaul and salvage work.

“They had the bulk of the fire knocked down in 15 to 20 minutes and prevented more serious damage from the fire that had a pretty good start,” Moller-Gunderson said.

For more:  http://gazettextra.com/news/2012/jun/06/fire-damages-lake-geneva-eatery/

Comments Off on Hospitality Industry Property Risks: Wisconsin Restaurant Kitchen Fire Spreads To Second Floor Storage Area; Significant Water And Smoke Damage

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

Tagged as , , , , ,

by | June 4, 2012 · 6:19 am

Hospitality Industry Legal Risks: Missouri-Based Restaurant Chain Settles $10 Million "Drunk Driving Lawsuit" Brought By Family Of Brain-Damaged Boy

The parents of Abdallah Khader, now 6, sought $10 million from Kansas City, Mo.-based Applebee’s in a civil lawsuit…Abdallah Khader suffered damage to 80% of his brain in the crash, and his family incurred massive medical expenses. Their lawsuit asked for $10 million to cover round-the-clock medical care along with lost future earnings, mental anguish, and pain and suffering — all typical damages in a personal-injury case.

The Khaders’ lawsuit accused workers at a Mansfield, Texas, Applebee’s of serving a man 23 drinks in less than two hours, leading him to drive drunk and crash into the Khaders’ car. A law firm’s investigation was key to the Applebee’s settlement, the family’s lawyer said.

The firm’s investigation dug up the alleged drunken driver’s Applebee’s receipts, which showed he paid for nearly two dozen drinks in a two-hour span. Police determined the driver’s blood-alcohol level was more than three times Texas’ legal limit, which is 0.08%.

The Khaders sued Applebee’s and the drunken driver, a repeat DWI offender who also faces criminal charges related to the crash. The driver’s criminal trial is pending, KTVT reports.

For more:  http://www.reuters.com/article/2012/05/31/tablogsfindlawcom2012-injured-idUS369201020620120531

Comments Off on Hospitality Industry Legal Risks: Missouri-Based Restaurant Chain Settles $10 Million "Drunk Driving Lawsuit" Brought By Family Of Brain-Damaged Boy

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

Tagged as , , , , ,

by | June 3, 2012 · 6:21 am

Hospitality Industry Property Risks: Oklahoma Hotel Fire Caused By "Hail Stone Striking Electric Sign"; Damage Estimated At $1.17 Million

“…a hail stone struck an electric sign on the front of the (hotel). The innkeeper put it out, and then extinguished a flare up in the attic, Lewis said. Believing it was over, the innkeeper did not call 911…a passer-by spotted  flames in the hotel’s roof and called 911, Lewis said. When Edmond fire crews arrived, they found a fully involved fire in the attic…”

A hail stone falling from storms that passed over the city Tuesday evening ignited a fire that burned much of an Edmond hotel, a fire official said.

By about 2:20 a.m. all guests in the front of the hotel had been evacuated, Lewis said. While a total number of guests at the time was not available, an Edmond Fire Department investigator estimated the hotel was about 80 percent full, Lewis said.  There were no injuries to firefighters or hotel guests, Lewis said.

The hotel and real estate are valued at $1.17 million by the county assessor, Lewis said. The structure, built in 1983, appeared to be a total loss, he said.

For more:  http://www.edmondsun.com/local/x234176720/Storm-related-fire-damages-1-17M-Edmond-hotel

Comments Off on Hospitality Industry Property Risks: Oklahoma Hotel Fire Caused By "Hail Stone Striking Electric Sign"; Damage Estimated At $1.17 Million

Filed under Fire, Guest Issues, Insurance, Maintenance

Tagged as , , , , , ,

by | June 2, 2012 · 6:40 am

Hospitality Industry Legal Risks: Widow Sues Missouri Sports Bar For "Wrongful Death And Negligence" After Party Tent Collapsed During High Winds

The lawsuit claims the bar was  negligent in failing to properly inspect the tent and by allowing customers  underneath it, even as weather forecasts warned of dangerous conditions…Kilroy’s had obtained a city permit for the tent April 11. But city officials  noted that their inspectors have no way to test a tent for structural strength  to make sure it can withstand 90 mph winds, an industry standard cited in the  local ordinance.

The wife of a man killed in the April 28 storm accident at Kilroy’s Sports Bar has filed a wrongful death suit against the pub and the company that  leased and installed the tent that collapsed on more than  100 patrons. Alfred Goodman, 58, of Waterloo, suffered head and neck injuries when  heavy wind gusts — estimated at up to 50 mph — lifted a party tent at the bar  from its moorings and pushed it and its heavy metal posts against a railroad  trestle.

Goodman was pronounced dead at St. Louis University Hospital. Another 16  people went to the hospital, and about 100 total were treated on the scene, for  a range of injuries.

Read more: http://www.stltoday.com/news/local/crime-and-courts/lawsuit-filed-by-widow-of-man-killed-in-st-louis/article_1a4c7cce-abfb-11e1-9dc8-001a4bcf6878.html#ixzz1we8mnojm

Comments Off on Hospitality Industry Legal Risks: Widow Sues Missouri Sports Bar For "Wrongful Death And Negligence" After Party Tent Collapsed During High Winds

Filed under Guest Issues, Injuries, Insurance, Liability, Maintenance, Management And Ownership

Tagged as , , , , , ,

by | May 31, 2012 · 6:26 am

Hospitality Industry Business Risks: Hotel Owners Must Consider "Business Loss/Interruption Insurance" As Part Of Comprehensive "Disaster Insurance" Coverage

“…many hotels don’t have business interruption insurance because it comes with higher premiums and deductibles…(one hotel) close to the Kentucky Derby area was hit by a tornado…the hotel wasn’t damaged, but they lost all of their utilities. If they hadn’t had that business loss insurance, they would have lost all of that income they would have generated during the race.”

After two tornadoes hit the same Midwest region in the United States within a year and caused extensive hotel damage, disaster insurance deductibles are on the rise and hoteliers are mulling their coverage options.

  • Higher deductibles – While premiums appear to be remaining steady, insurance companies in the Midwest are charging a higher rate of percentage deductibles to help keep costs down, he said. As an example, if a hotel had $100 million in coverage and there was a 5% deductible, the deductible would be $5 million.
  • Wind and flood insurance premiums in the Midwest remain relatively flat overall, with slight increases for some hotels. In other parts of the country, such as coastal areas, the cost of wind and flood insurance has risen 8% to 10% on average, according to sources.
  • Reinsurance options—insurance that is purchased by one insurance company from another—are available, as are percentage deductibles based on the amount of coverage rather than a flat rate.
  • Wind deductible buy-back insurance—which provides a buy-back policy that reduces the higher percentage deductible—with deductibles most likely still will be higher than the flat deductibles previously offered.
  • Storm surge coverage is available under a flood plan or wind storm plan. Some policies exclude floods altogether.
  • Business loss/interruption insurance - Hotels impacted after the 9/11 terrorist attacks and hotels in California affected by the 1994 Northridge, California, earthquake would have benefited greatly from business loss/interruption insurance.

For more:  http://www.hotelnewsnow.com/Articles.aspx/8282/Hoteliers-mull-disaster-insurance-options

2 Comments

Filed under Claims, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , , , , ,

by | May 30, 2012 · 6:53 am

Hospitality Industry Compliance Risks: Hotels Must Have "Written ADA And Local Accessibility Policies And Procedures" To Avoid Costly Litigation

 “…(without) written ADA and local accessibility policies and procedures for your hotel or timeshare property, then you are taking unnecessary risks…New Guest Room Requirements for Mobility and Communication Features requirements apply to new and altered public accommodations…”

What Can You Do to Avoid Liability?

  • Training – Training is critically important, and it can help prevent expensive litigation. Thought must go into the preparation of an accessible room, and the approach must be different depending on the disability of the individual who has booked the room. JMBM performs site inspection surveys and works with hotel operators to train the staff to address the needs and concerns of individuals with disabilities.
  • ADA Surveys/Site Inspections – Even if you own or operate a newly constructed property, an ADA Survey will likely reveal areas of non-compliance and rooms for improvement in policies and procedures. By working with a CASp (Certified Access Specialist program) certified consultant, you may enjoy certain protections against liability while you seek to bring your property into compliance.
  • Website Accessibility – This is an area of focus for the Department of Justice. This area is evolving, but your website must already comply with all current reservation requirements.

For more:  http://hotellaw.jmbm.com/2012/05/ada_compliance_panel.html

Comments Off on Hospitality Industry Compliance Risks: Hotels Must Have "Written ADA And Local Accessibility Policies And Procedures" To Avoid Costly Litigation

Filed under Guest Issues, Insurance, Labor Issues, Legislation, Liability, Management And Ownership, Risk Management, Training

Tagged as , , , , , , , ,

by | May 29, 2012 · 7:13 am

Hospitality Industry Legal Risks: Hotel Management Must Review Social Media Policy For Employees To Ensure Restrictions Do Not Violate "NLRB Section 7 Rights"

“…in late February 2012, the NLRB filed a complaint against a group of Hyatt Hotels alleging, among other things, that the restrictions placed on the use of social media, such as admonitions not to comment on hotel properties or locations, or to use the Hyatt brand/logo or photos of the properties, were overboard and discriminatory…”

The NLRB reports expressed concerns regarding attempts by an employer to block — for example — employees from using a company’s trademarked logo in social media. That was considered, generally, to be in violation of an employee’s Section 7 rights.

“Interests protected by trademark laws — such as the trademark holder’s interests in protecting the good reputation associated with the mark from the possibility of being tarnished by inferior merchandise sold by another entity using the trademark and in being able to enter a related commercial field and use its well-established trademark, and the public’s interest in not being misled as to the source of products using confusingly similar marks — are not remotely implicated by employees’ non-commercial use of a name, logo, or other trademark to identify the Employer in the course of engaging in Section 7 activity” (2012 Report).

Yet, such disclaimers are sometimes required by the Federal Trade Commission. In fact, under the revised regulations published by the FTC in 2009, if anyone other than a company or the brand owner itself advertises or talks about the company’s product or service, the FTC requires the disclosure of the relationship between the “talkee” and the “brand,” so that potential consumers understand that the recommendation or information contained in the social-media posting could be biased (See generally 16 C.F.R. §255.)

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=533347702

Comments Off on Hospitality Industry Legal Risks: Hotel Management Must Review Social Media Policy For Employees To Ensure Restrictions Do Not Violate "NLRB Section 7 Rights"

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

Tagged as , , , , , ,