Category Archives: Insurance

by | October 5, 2011 · 12:36 pm

Hospitality Industry Employment Liability Risks: "Employment Practices Liability Insurance" Does Not Cover Lawsuit Brought By EEOC According To A Federal Court; Insurance "Claims" Limited To Suits Brought By "Employees"

“…A federal court in Tennessee recently ruled that an employer’s employment practices liability insurance (EPLI) did not cover a $2.7 million settlement of a lawsuit brought by the EEOC… because the policy limited “claims” to proceedings brought by employees, and the EEOC was not Cracker Barrel’s employee…”

 The specific language in the policy defined a “claim” as “a civil, administrative or arbitration proceeding commenced by the service of a complaint or charge, which is brought by any past, present or prospective ‘employee(s)’ of the ‘insured entity’ against any ‘insured.’”

After 10 Cracker Barrel Old Country Store employees filed charges of race and/or sex discrimination with the EEOC, the EEOC sued Cracker Barrel under Title VII. Cracker Barrel eventually settled the underlying EEOC lawsuit, entering into a consent decree obligating it to place $2 million into a settlement fund. In addition, Cracker Barrel incurred more than $700,000 in defense costs.    

Although Cracker Barrel gave proper written notice of the EEOC lawsuit to its carrier, the Court ruled that Cracker Barrel was not entitled to recover any of the $2.7 million under its EPLI policy. The Court held that the language in the EPLI policy did not extend to the EEOC lawsuit because the policy limited “claims” to proceedings brought by employees, and the EEOC was not Cracker Barrel’s employee.

For more:  http://www.lexology.com/library/detail.aspx?g=21384c3f-95d2-424d-a68c-ecd547ebe694

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

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by | October 4, 2011 · 5:44 am

Hospitality Industry Employee Risks: Colorado Hotel Owners Sued By U.S. Equal Employment Opportunity Commission (EEOC) For Firing White Workers In Favor Of Hispanic Workers

“…one of the fired employees was told she was being terminated because the hotel owners preferred non-American and non-Caucasian workers ‘because it was their impression that such workers are lazy’..”

The U.S. Equal Employment Opportunity Commission is seeking back pay for employees that federal officials said were fired from a Hampton Inn franchise in Craig, Colo., according to the lawsuit filed last week.

Former employees at a western Colorado hotel said they were fired and replaced with Latino workers because the business owners thought white and non-Hispanic workers were lazy, according to a federal lawsuit announced Monday.

The lawsuit claims the general manager of the hotel was told by the business owners “to hire more qualified maids, and that they preferred maids to be Hispanic because in their opinion Hispanics worked harder.”

For more:  http://www.businessweek.com/ap/financialnews/D9Q51LLO1.htm

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

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by | September 30, 2011 · 5:33 am

P3 Hospitality Industry Risk Report: "Food Poisoning Claims" Discussed By Todd Seiders, Director Of Risk Management For Petra Risk Solutions (Video)

[youtube=http://www.youtube.com/watch?v=lNI4lz7_scE]

Petra Risk Solutions’ Director of Risk Management, Todd Seiders, offers a P3 Hospitality Risk Report – ‘Food Poisoning Claims’.

P3 ( Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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Filed under Food Illnesses, Guest Issues, Health, Insurance, Liability, Management And Ownership, Risk Management, Training

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by | September 28, 2011 · 5:20 am

Hospitality Industry Employee Risks: Rising Health Insurance Premiums Force Hotel Management To Consider Shifting Costs Or Raise Deductibles

“…Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Organizations increased the employee portion of the premium at a rate of 54.3 percent, whereas 42 percent have increased deductible levels….”

 The 2011 Compensation Data Hospitality survey results show companies reported an average premium increase of 9.3 percent. More than 45 percent of respondents indicated they pay more than $9,600 annually for an employee plus family plan.

“The rising cost of insurance premiums is something that continues to be an issue for employers,” says Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “To counteract these rising costs, organizations have to look in different directions in order to continue providing quality coverage for their employees.”

Premium costs remain high for hospitality employers, as 47.9 percent pay more than $7,200 for an employee-plus-spouse plan. Of survey respondents, 42 percent report paying more than $7,200 in premium costs for an employee-plus-children plan. Employee-only plans cost employers between $2,400 and $7,200 per year.

For more:  http://www.qsrmagazine.com/news/medical-insurance-rises-hospitality-industry

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by | September 27, 2011 · 6:10 am

Hospitality Industry Guest Health Risks: Illinois Hotel Sued Six Months After Guests Discovered Bed Bugs In Room

A hotel employee again offered the couple a new room, the lawsuit said, but they declined. After they returned home, they said Gonzales noticed bite marks on Layman’s shoulder. She said a doctor confirmed she was bitten by bed bugs, and the couple’s suit said a Hollywood Casino manager acknowledged the pests were bed bugs.

“..they pulled down the covers and discovered red bugs running on the sheets. Layman said she videotaped the bugs with her cell phone…”

 

A Blue Island couple is suing the Hollywood Casino Joliet and its hotel, saying they found bed bugs in their room more than six months ago. Tamara Layman and Leo Gonzales filed the lawsuit in Will County this month. Layman said she first tried asking a manager there to simply reimburse her for doctor visits, lost property and a ruined weekend. But she said she’s had no success.

The lawsuit said Layman and Gonzales checked into the casino’s hotel March 5, left their luggage in their room and went to the casino. They returned a few hours later and went to sleep. But Layman said she woke up at 1:30 a.m. and noticed a bug on a pillow.

Gonzales killed the bug, and Layman carried it in a tissue to the hotel’s front desk, where an employee offered to give them another room.

Layman and Gonzales said they threw out most, if not all, of what they brought to the casino including luggage. They also said it took 17 days for the hotel to send an exterminator to their home for an inspection.

For more:  http://news.google.com/news/more?q=hotel&hl=en&bav=on.2,or.r_gc.r_pw.&biw=1366&bih=497&wrapid=tlif131713187418910&um=1&ie=UTF-8&ncl=d6mgZ9jhZCUXCgMuGZI-DUW1QcQjM&ei=adaBTpPAMI7MsQLqmoiYDw&sa=X&oi=news_result&ct=more-results&resnum=10&ved=0CMsBEKoCMAk

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by | September 26, 2011 · 7:39 am

Hospitality Industry Fire Risks: Older California Hotel Suffers "Severe Fire Damage" Due To Lack Of "Fire Stops" In Walls

“…Damage to the 15,000 square-foot hotel and 4,000 square-foot bar was so severe that no one was allowed in the buildings due to the possibility of a collapse. An engineer was called to come out and assess the building’s structural integrity….”

Fire ripped through the Traveler’s Hotel and The Knockout Bar at the 200 Block of C Street early Saturday morning.

According to CAL FIRE spokesperson Bob Eicholtz, one reason that aided in the fire spreading was that the buildings were old and there were no fire stops in the walls.

CAL FIRE dispatched five engines, three ladder trucks and approximately 35 firefighters to battle the fire.

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by | September 24, 2011 · 6:18 pm

Hospitality Industry Health Risks: Hotel Pool Guests Face Outbreaks Of "Acute Gastrointestinal Illness" As "Cryptosporidium" Parasite Proves Chlorine Resistant

Outbreaks of illness related to recreational water exposure have increased substantially in recent years, largely because of the emergence of Cryptosporidium, according to a CDC report.

In the years 2007/2008, 74% of cases of acute gastrointestinal illness associated with recreational water exposure were caused by this parasite, and in all but two of the outbreaks the venue was a treated-water facility such as a chlorinated swimming pool.

The dominance of Cryptosporidium in treated recreational water facilities “is related to its chlorine tolerance, which allows it to survive in properly chlorinated recreational water for longer than ten days,” the agency stated in the Sept. 23 Morbidity and Mortality Weekly Report.

For more:  http://www.medpagetoday.com/InfectiousDisease/PublicHealth/28692

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Filed under Guest Issues, Health, Insurance, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management, Training

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by | September 22, 2011 · 12:16 pm

Hospitality Industry Employee Risks: Government Regulators To Enforce "Wage-And-Hour Laws" Regarding Minimum Wage And Overtime Pay; Multiple Fines To Hotel Owners Found Guilty Of "Wage Theft"

 “…Labor officials will target businesses that improperly label workers as independent contractors or as non-employees to deprive workers of minimum wage and overtime pay. Misclassifying workers also lets companies avoid paying workers compensation, unemployment insurance and federal taxes..”

Labor Secretary Hilda Solis has made increased enforcement of federal wage-and-hour laws a top priority since she took office in 2009. The department has focused on industries where so-called “wage theft” is considered a problem, including the hotel, restaurant, janitorial, health care and day care industries.

Patricia Smith, the Labor Department’s top lawyer, said sharing information between state and federal agencies could subject businesses to multiple fines.

“There’s more of an incentive to be in compliance because the cost of what we consider to be illegal activity has increased,” Smith said in an interview.

In the past, Smith said, a company might pay a single fine to a state agency for not making proper unemployment insurance payments. Under the new agreements, a state can share the information with the Labor Department, which also can seek fines and penalties for federal wage violations.

The violation also would be reported to the IRS, which can go after the company for unpaid taxes, Smith said.

States that have agreed to work with the Labor Department so far include Connecticut, Hawaii, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington. Labor officials from New York and Illinois plan to sign up in the near future.

For more:  http://online.wsj.com/article/AP1a153b15fbd44922854b2aff6f272223.html

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by | September 16, 2011 · 6:32 pm

Hospitality Industry Lawsuit Risks: "Hotel Negligence" Lawsuits Are Proliferating To Include Hotel Physicians Who Provide Guests' Medical Care

“…Hotel negligence is so prevalent in a vacation destination like Florida, with so many people harmed, that an increasing amount of our practice focuses on so-called resort litigation…and the types of negligence are expanding…to cases involving hotel physicians — doctors with whom the hotels have arrangements, that are called in to care for hotel guests…”

 The problem, says Reboso, is that the hotels typically do not check the credentials of the doctors and house call services they provide to guests. “You don’t know if you’re getting the best doctor in Florida or the worst,” says the injury lawyer. “And neither does the hotel. It’s a recipe for disaster. The clients we’re representing in these kind of resort litigation lawsuits have been harmed by negligent medical care.”

Nor do the hotels give guests the real picture on prices, adds Reboso: “In one case we are handling, the hotel said the service would cost $600, while the credit card charge — which comes well after you’ve left the hotel — was $6,300. We have found plenty of other cases in Florida when a $500 charge suddenly turns into a $4,000 or $5,000 bill. Obviously, the hotel industry and the medical profession need to educate themselves about what is going on and do something about it.”

 

For more:  http://www.prweb.com/releases/2011/9/prweb8793265.htm

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by | September 13, 2011 · 10:49 am

Hospitality Industry Information Security Risks: Senate Introduces "Personal Data Protection And Breach Accountability Act Of 2011" Forcing Companies To Secure Personal Data

“…Introduced by Sen. Richard Blumenthal (D-Conn.), the Personal Data Protection and Breach Accountability Act of 2011 would force companies that hold online information for more than 10,000 people to follow strict guidelines to ensure the data is stored correctly…”

The U.S. Senate will consider a bill aimed at protecting citizens’ personal information from online data theft, and penalizing companies that don’t adequately store and safeguard their customers’ personal information.

The bill would impose fines on companies who don’t follow the guidelines and leave customer data open to compromise, and open the door for customers to sue companies that don’t adequately protect their data.

Blumenthal’s bill would put the U.S. government in line with states such as Massachusetts, which has legislation that fines companies that improperly protect residents’ digital data.

For more:  http://www.msnbc.msn.com/id/44491737/

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