Category Archives: Insurance

by | March 29, 2012 · 8:38 am

Hospitality Industry Property Risks: New York Elevator Mechanic Dies When Electrocuted During Maintenance Work Near Control Panel

“…(He) was performing maintenance in the engine room on the ninth floor of  the Axa Equitable building …when he was electrocuted just  after 9:30 p.m…”  

Con Edison was called to the scene for safety reasons, an  agency spokesman said, but it was unclear how the man came into contact with  live wires in the room that houses a control panel and a riser that works to  operate the building’s 34 elevators.

A 39-year-old elevator mechanic died when he was electrocuted at work in a  44-story midtown office building Wednesday night, fire and police officials  said.  Emergency responders found  the repairman unconscious and in cardiac arrest, a fire official said.  But  he died less than 30 minutes later, according to a police source.
“He’s  dead,” a fire source at the scene said. “He was lying on live  wires.”
Building workers said the man had been employed for the past five  years by the Schindler Group – a company that develops, installs and services  elevators and escalators, according to its website – which contracts with the  building to supply in-house mechanics to keep up with repairs.
“He has  three kids, it’s horrible,” said one coworker said. “He was a very nice guy. He  was hardworking and smart,” he said of his fallen friend. “But no one knows what  happened.”
Read more: http://www.nydailynews.com/new-york/mechanic-electrocuted-elevator-manhattan-office-building-article-1.1052532#ixzz1qWQmFsvr

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by | March 25, 2012 · 9:43 am

Hospitality Industry Property Risks: Minnesota Hotel Kitchen "Oil Fryer Fire" Causes $100,000 In Damage

“The oil in the fryer reached its ignition temperature; the employees tried to extinguish the fire with a fire extinguisher, which was ineffective against the burning oil.”  

A fire in a Pannekoeken restaurant fryer at the Days Inn Hotel in downtown Rochester on Saturday morning caused an estimated $100,000 in damage.  Firefighters were called to the hotel, located at 6 First Ave. N.W., at 6:17 a.m., said Rochester Deputy Fire Chief Steve Belau. Employees had been opening the kitchen for the day, and had started the fryer when the mishap happened.
“After a time the fryer was noted to be boiling excessively (and) efforts by employees to shut down the fryer were unsuccessful,” Belau said.

The built-in fire extinguisher system slowed the fire, but was overcome when the fire became too large, Belau said. When firefighters arrived, there was smoke in the main floor and fire in the exhaust hood area of the kitchen. Fire was coming out of the exhaust vent on the outside.
Firefighters used two large portable fire extinguishers. At first, each time they knocked it down, it came back, Belau said. Also, it was unusually hot and smoky inside the kitchen. “Oil fires are very difficult to extinguish due to the unusually high temperatures associated with them,” he said.

For more:  http://www.postbulletin.com/news/stories/display.php?id=1491004

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by | March 24, 2012 · 7:41 am

Hospitality Industry Legal Risks: Arizona Restaurant Chain Found Guilty Of "Pregnancy Discrimination" In Suit Brought By EEOC

“The EEOC would like to remind employers that pregnancy discrimination has been illegal for decades, and violations of the law will be met with rigorous enforcement by our agency.”

 The manager admitted in sworn testimony that he had made that statement, having been told by a company official that he could not hire pregnant women.

An Arizona federal jury returned a verdict against High Speed Enterprise, Inc., a corporation that owns five Phoenix-area Subway restaurants. The jury awarded damages to Belinda Murillo, a job applicant who claimed she was refused a position solely because she was pregnant. The suit was brought by the U.S. Equal Employment Opportunity Commission (EEOC).

According to the lawsuit, EEOC v. High Speed Enterprise, Inc. dba Subway, Murillo applied for a job at a central Phoenix Subway in May 2006. Later that month she met with the general manager who asked if she was pregnant. She said yes.

EEOC says that the manager told the applicant, “We can’t hire you because you’re pregnant.” She also reminded pregnant women that it is against the law for employers to fire them or treat them differently because they are expecting.

For more:  http://safety.blr.com/workplace-safety-news/safety-administration/Disabilities-ADA/Jury-Decides-Against-Restaurant-Owner-in-Discrimin/

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by | March 23, 2012 · 8:30 am

Hospitality Industry Property Risks: Maryland Hotel Suffers $50,000 In Water Damage As Guest Is "Tricked Into Breaking Off Fire Sprinkler"

“…Fire officials said a female guest was contacted by someone at the  website pranku.net and told that a gas leak had occurred in the hotel.  The  guest was then tricked into breaking off the sprinkler head in her room with a  toilet bowl cover, which then caused water to flow into eight rooms and the  floor below…”

The state fire marshal’s office is investigating an incident at a hotel in  Aberdeen in which a guest was pranked into breaking the sprinkler system with a  toilet bowl lid, which subsequently caused several rooms to flood.

Firefighters were called to the second floor of the Holiday Inn Express  in the 1000 block of Beards Hill Road about 1:30 a.m. Friday.

Officials said there was about $50,000 worth of damage to the hotel. No  charges have been filed at this point.
Read more: http://www.wbaltv.com/news/30746462/detail.html#ixzz1pxPycGH5

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by | March 21, 2012 · 11:52 am

Hospitality Industry Theft Risks: Hotel Liability For Theft Of Guest's Property Is Limited By Statute In All States; Providing Digital Room Safes Can Limit Total Losses

Under common law, an innkeeper or hotelier was liable for loss or damage to guest’s property for the full value, unless the loss was caused by an act of nature (hurricanes, tornadoes, etc.), civil unrest, or the fault of the guest…each state has modified the common law by enacting statutes that limit the hotel’s liability… ordinarily limited to a specific figure, anywhere from $250 to $5,000.

Hotels typically post conspicuous notices indicating that valuables worth more than a certain amount (e.g., $250 or $500) must be deposited in the hotel safe in order to be covered for any loss. (Room safes are generally recommended only if they contain digital keypads, and the guest assumes all responsibility for getting into the safe and keeping the combination confidential.)

Two states have been randomly selected to provide examples of these statutes:

  • The Rhode Island statute states that if the hotel provides a safe for depositing money, jewelry, watches, and the like, and notifies guests by posting a conspicuous notice to that effect, and guests fail to deposit their valuables in the safe, the hotel is not liable for any loss to the valuables. It goes on to add that the hotel is not obligated to accept property for safekeeping that exceeds $500 in value. If a guest deposits property with a value exceeding $500 in the safe, the hotel is not responsible for loss to this property for more than $500, unless there is a special written agreement with the hotel for a greater amount.
  • The New Mexico statute states that the hotel is liable to its guests for loss of their property that is caused by the theft or negligence of the hotel or its staff, up to a limit of $1,000. However, if the hotel provides a suitable safe for safekeeping of money, jewelry, or other valuables, and notifies guests by posting a printed notice in hotel rooms, and guests fail to deposit their valuables in the safe, the hotel will not be liable.

For more:  http://www.adjustersinternational.com/insights_1002EA.cfm

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by | March 20, 2012 · 11:47 am

Hospitality Industry Information Risks: "Specialized Cyber-Risk Insurance" Is Important In Providing "Security Liability" And "Privacy Liability" Coverage

A specialized cyber-risk insurance policy is necessary. Coverage would not usually be triggered under a commercial general liability policy–many of which also have exclusions. Importantly, property-damage policies typically do not acknowledge “data” as property.

“Cyber liability” is essentially comprised of two defined risks:

  • Security Liability: the unauthorized access and/or use of a network. Employees or others with access to the network can misappropriate identity information, business secrets, transmit malicious codes, and undertake a denial of service attack against your network or other networks.
  • Privacy Liability: the breach of personal data protection laws that allow individuals to control the collection, access, transmission, use, and accuracy of their personal information.

The available policy coverage options start with General Internet Crime Liability. This addresses the first and third party risks associated with e-business, the Internet, networks and informational assets.

However, it is critical to review your business activities to ensure appropriate coverage. To this needs to be added appropriate Property, Directors and Officers, Business Interruption and Fidelity wordings. For those businesses offering software and services susceptible to outage or malfunction associated with a cyber-attack, Electronic Errors and Omissions coverage should also be obtained.

For more:  http://www.pcworld.com/businesscenter/article/252126/can_insurance_cover_cybercrime_damages_at_your_business.html

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by | March 18, 2012 · 7:56 am

Hospitality Industry Employment Risks: Hotel Management Must Use Consistent Hiring And Firing Procedures To Prevent "Age Discriminiation Lawsuits"

  • Initial screening: Make sure those responsible for selecting interview candidates don’t have access to information about applicants’ race, age, sex or other protected characteristics. That alone will prevent many failure-to-hire claims. HR should take the lead and prepare applicant summaries for hiring managers to screen that contain no tell-tale information about protected characteristics. That may mean even excising names, using a candidate number instead.
  • Who hires and fires: The same individual responsible for the final decision to hire an applicant should also make the decision to fire that individual if necessary. This helps dispel the notion that a protected characteristic like race or age had anything to do with the decision. After all, why would someone hire an applicant who belongs to a protected class then turn around and fire the same person because of her race, sex, age, etc.?
  • Training: Track training to make sure each employee has the opportunity to improve job performance. Note any training offers and the employee’s response.
  • Informal audit: Review your labor pool regularly. Look for patterns that may indicate hiring bias. For example, are all employees in a particular job under age 40? If so, find out why.

For more:  http://www.businessmanagementdaily.com/29524/use-consistent-hiring-firing-processes-to-knock-down-age-discrimination-claims

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by | March 16, 2012 · 8:14 am

Hospitality Industry Legal Risks: Virginia Hotel Sued For $12 Million By Family Of Woman Killed By Valet Driver

“…A multi-million dollar lawsuit is filed in Richmond Civil Court, by the husband of the woman killed outside of a downtown Richmond hotel, allegedly by a valet driver for that hotel…Court documents say that (the valet) pulled out of the driveway of the hotel and instead of turning onto the street, he turned left down the sidewalk and ran right into (the woman)…”

“…Among those named in the suit is the Hilton Garden Inn. And the valet company employed at the hotel…”

In (the civil lawsuit) — Stone’s husband, John, lays out the pain, sorrow and anguish he’s been dealing. Stone died just a few days before their wedding anniversary. The suit says Josephine Stone’s death was a direct result of the negligence, recklessness and a conscious disregard for her rights and safety. The total amount wanted: more than 12 million dollars.

The Hilton released this statement, saying, “We deeply regret the tragic loss of any life especially this promising young person. We continue to work with the third party operator, parking management services, on this matter and will continue to cooperate with local authorities as we have done since this tragic accident. We continue to keep the stone family and friends in our thoughts and prayers.”

Gray is facing a involuntary manslaughter charge as well. That is set to go to a trial on May 25th.

For more:  http://www.nbc12.com/story/17170161/civil-lawsuit-filed-in-woman-killed-outside-richmond-hotel

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by | March 14, 2012 · 2:41 am

Hospitality Industry Theft Risks: California Hotel Security Guard Charged With "Grand Theft And Burglary"; Accessed Online System To Steal Guest's Valuables

“…In his part-time security job for the hotel, Quinton was entrusted with access to an online lost and found system, which he is suspected of looting…”

“…In addition….(he) covered surveillance cameras in the hotel security office and stole $680 in cash from an office safe…”

A Los Angeles Police Department officer moonlighting as a security guard at Laguna Beach’s Surf & Sand Resort is to be charged with grand theft and burglary, the district attorney’s office said on Tuesday. Laguna Beach police, who had set up surveillance cameras within the hotel after its staff reported irregularities that began in October, arrested Quinton on Jan. 24, Lt. Jason Kravetz said.

When police arrested Quinton on Jan. 24, he had disappeared for over an hour during his shift, including from surveillance cameras police were monitoring in a spare hotel room, stealing $290 in bedding from a locked hotel storage room, and storing the items in his car. Detectives who went to Quinton’s home after the arrest seized more property, Kravetz said.

Hotel staff aided the investigation with monitoring cameras while detectives observed the employee from a hotel room. “We wanted to make sure we had a really solid case,” said Kravetz, who pointed out that most Orange County law enforcement agencies prohibit sworn officers from moonlighting in security posts or jobs involving alcohol. In Los Angeles County, officers have a long history of moonlighting as security for celebrities, he pointed out.

In October, Quinton allegedly stole cash that had been recovered from a room and secured in the hotel’s lost and found by accessing the online system and changing the cash entry into a “gold watch.” He is suspected of changing the room number where the $2,000 in cash had been found and falsely logging that the watch was returned to its owner, stealing $960 from the safe, Kim’s statement said.

For more:  http://www.lagunabeachindependent.com/2012/03/13/moonlighting-cop-charged-hotel/

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by | March 13, 2012 · 9:18 am

Hospitality Industry Legal Risks: Hotel Management Must Comply With Americans With Disabilities Act (ADA) Revisions Concerning Recreational Areas; Exercise Rooms, Saunas And Benches Are Areas Of Concern

New revisions to the Americans with Disabilities Act are bringing hotel recreational areas under the watchful eye of the U.S. Department of Justice for the first time. And unlike other guidelines covered by the 1991 ADA Standards for Accessible Design, recreation areas do not qualify for safe harbor.

Exercise rooms:

  •  The key issue in exercise rooms is clearance space, the moderators said.
  • “At least one of each type of equipment is required to be on an accessible route and have clear floor space adjacent to the equipment so that somebody is able to park their mobility device there and then get out of that device and transfer or may be able to walk and get on to this piece of equipment,” Salmen said.
  • More than one piece of equipment can share the same clear floor space, he said.
  • “This is going to have implications on how your fitness rooms are laid out, and (in) a lot of small fitness rooms you will have to do rearranging or potentially may even have to lose a piece of equipment in order to try to provide these clear floor areas,” Anderson added.

Saunas and steam rooms:

  •  Hotels must have accessible routes into saunas and steam rooms. Further, they must have enough space within the rooms so guests with disabilities can turn around and get out, Salmen said.
  • “So doors have to be compliant as per the door criteria with 32 inches of minimum clear opening width. The pressure on that door can’t be more than five pounds. The thresholds for those doors have to be compliant,” he said.

Benches:

  •  Benches in hotel locker rooms and steam rooms can be as little as 42 inches with a depth of 20 inches to 24 inches, Salmen said.
  • “But in these new rules we are now required to have a maneuvering space in front of the bench and at one end of the bench so that it is (easier to slide over) from the wheelchair seat onto the seat of the bench,” he said.
  • Benches must be attached to a wall or provide a back rest so users will have something to lean against, Salmen added.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7732/ADA-standards-call-recreation-areas-into-focus

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