Category Archives: Insurance

by | June 1, 2010 · 7:01 am

Hotel Industry Labor Risks And Liability: California Labor Commissioner Sues Hotel For Labor Violations Including Failure To Pay Wages, Minimum Wage And Overtime Pay

California’s Labor Commissioner has filed a lawsuit against David Weyrich’s Carlton Hotel Investments LLC for labor violations involving more than $100,000 in lost wages and penalties.

The hotel is accused of six labor code violations, including failure to pay wages when due, failure to pay minimum wages and failure to pay overtime.

The lawsuit, filed today by the state Department of Industrial Relations in Paso Robles’ Superior Court, alleges the violations involve an estimated 60 workers employed by the hotel since October 2009, according to court documents.

Read more: http://www.sanluisobispo.com/2010/03/08/1059170/david-weyrichs-carlton-hotel-sued.html?storylink=mirelated#ixzz0pc50ICrj

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by | May 31, 2010 · 5:00 am

Hotel Industry Health Risks: Centers For Disease Control (CDC) Finds Serious Pool Bacteria Code Violations At 15% Of Over 16,000 Hotels, Motels And Resorts

The Centers for Disease Control and Control and Prevention found that, aside from childcare facilities, that 16,569 hotels, resorts and motels had the highest rate of closure due to serious code violations, mainly low disinfectant in the water to battle bacteria, about 15% or 1 in 6 hotel inspections.

Shigella and novovirus cause stomach and intestinal infections like gastroenteritis. Another microorganism found in pools is pseudomonas, which causes harmless but unsightly pustules on the skin.

To prevent closures or violations, hotel managers and staff should be using routine maintenance and sanitation, with frequent pool checks during high use when chlorine will get a work-out. Anyone, including a member of the hotel staff can check the pH level of the pool by using free test strips available from the Water Quality & Health Council (water levels should be within 7.2 to 7.8.)

For more:   http://industry.bnet.com/travel/10006301/cut-the-crap-the-dark-side-of-hotel-pools-and-how-to-manage-it/

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by | May 30, 2010 · 5:08 am

Hotel Information And Data Security Risks: Costs To Hotels Can Be High If Guests Personal Information And Credit Card Data Are Stolen

“…class-action claims will be brought against hotels. These are particularly problematic because while the actual damages may be low, the cost of settling is very high…”

…basis for a claim can be negligence—hotel guests can argue that even when a hotel did not overstep its promises, it is liable to a guest for negligence by not taking adequate steps to protect information. That is going to be even more important as state and federal governments pass laws and adopt regulations that require companies to take affirmative steps to safeguard personal information; these laws and regulations will form a road map for potential plaintiffs.

as we see larger and larger breaches (such as the recently announced Wyndham breach), it’s likely that class-action claims will be brought against hotels. These are particularly problematic because while the actual damages may be low, the cost of settling is very high. Second, governmental agencies—particularly states’ attorneys general and the Federal Trade Commission—are increasingly active in monitoring and investigating breaches. Even where no damages are incurred, responding to investigations is a costly, time-consuming process. I am currently working on a response to an informal FTC investigation that recently topped 1,000 pages—and we’re about half way through.

For more:   http://www.hotelnewsnow.com/Articles.aspx?ArticleId=3364&ArticleType=35&PageType=News

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by | May 29, 2010 · 5:34 am

Hospitality Industry Liability Insurance: Hotels And Restaurants That Provide Valet Service Must Have Liability Insurance And Garage Keepers Legal Liability Coverage

Liability insurance and garage keepers legal liability insurance are two specifically different coverage’s.

In the news recently, a man used a valet on a lunch date with his wife. A man, pretending to be the valet, used his claim ticket to steal his wife’s brand new BMW...

Liability insurance provides protection for the parking company for their negligence should they injury or damage someone or someone else’s property (i.e. Bodily Injury and Property Damage Coverage).

This would be to a third party. Garage keepers legal liability insurance provides protection for the parking company for their negligence should they damage the customers vehicle in which they have taken into their care, custody and control.

For more:  http://www.valetpark.net/ins.html

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by | May 27, 2010 · 5:19 am

Hospitality Industry Workers’ Compensation Risks: Hotel Owner Forced To Pay Large Settlement For Failing To Provide Injured Night Clerk With Workers’ Comp Insurance

“…secured a seven figure settlement against a prominent hotel chain after they failed to provide Workers’ Compensation to their night clerk who was injured in the course of employment…”

“…The hotel owner knowingly employed the clerk as an undocumented worker and was paying the clerk cash “under the table” without securing Workers’ Compensation insurance…”

The employee was injured when he went to investigate a complaint of noise coming from a hotel room and was brutally attacked by the occupants of the room.

 As part of the settlement the hotel chain was forced to take complete financial responsibility for their attempts to circumvent California labor laws. “We want our clients to be fairly compensated for injuries suffered at the hands of business owners who try to bend the rules, and we will leave no stone unturned when an employer tries to take advantage of his employees to save money and line his/her own pockets” said attorney McMahon.

For more:   http://www.onlineprnews.com/news/37680-1274803334-san-jose-law-firm-of-corsiglia-mcmahon-allard-resolves-5-personal-injuryemployer-liability-cases.html

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by | May 25, 2010 · 2:51 am

Hotel Industry Identity Theft Risks: Police Arrest Three At Oregon Hotel Who Used Fake ID’s And Stolen Credit Cards

“The name on the credit card, when they swiped it, didn’t come up on the display to match the id they had,” she said.

Hotel workers tried to verify the card with Visa, but they were unsuccessful.  Police arrested Patrick Marsden, Christopher Baker, and Arlene Goe for theft of services. Officers raided their room and seized credit cards, possible stolen property and equipment used to make fraudulent IDs.

Police arrested three identity theft suspects who rented a room at a downtown Portland hotel.

“For identity theft it’s pretty sophisticated,” said Detective Cheryl Waddell.

“Everyone denies ownership,” said Officer Clint Snodgrass.  “They say the stuff in the room is not theirs,” he added.

Detectives say the group also made purchases up and down the coast and at REI in the Pearl, all using fake id’s and fraudulent credit cards.

“They’ve gone pretty much exclusively digital,” said Waddell.

For more:   http://www.kgw.com/news/local/3-ID-suspects-arrested-at-Portland-hotel-94620904.html

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by | May 23, 2010 · 7:09 am

Hospitality Industry Insurance: Directors’ And Officers’ Liability (D&O) Insurance Must Have “Dedicated Limits” Coverage To Cover Legal Defense Costs

“…the industry invented what’s known as dedicated limits–sometimes called difference-in-conditions–coverage. This coverage sits on top of and is excess to both the indemnity contracts and the company’s general D&O policy and is specifically intended to cover the situation where the company cannot or simply will not advance the director and officer his defense costs for matters with criminal law implications or otherwise…”

(From a RiskAndInsurance.com article)   Typically, directors and officers have an employment agreement, corporate by-law or separate contract that requires the company to “advance” (i.e., loan) them their legal defense costs should they become involved in a suit or investigation that could have criminal law implications for them. This is a director’s and officer’s first line of protection.

The programs then also typically insure directors and officers under D&O insurance policies. “Side A” of such policies insures them directly. “Side B” reimburses the company if it advances them money for defense costs under the company’s by-law or contract. And “Side C” covers the company’s fees if it is a defendant in a securities case.

Because all the coverages fall under a single limit, whatever is paid to the company under one side reduces the total coverage available. Plus, if there’s a big self-insured retention–a deductible–the directors and officers may have to pay it out of their pockets.

It’s for that reason (among others) that the industry invented what’s known as dedicated limits–sometimes called difference-in-conditions–coverage. This coverage sits on top of and is excess to both the indemnity contracts and the company’s general D&O policy and is specifically intended to cover the situation where the company cannot or simply will not advance the director and officer his defense costs for matters with criminal law implications or otherwise.

Most companies, however, do not have this coverage. Perhaps this complicated structure may have caused directors and officers in the past not to investigate their protection in great detail.

 For more:   http://www.riskandinsurance.com/story.jsp?storyId=395653638

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by | May 20, 2010 · 7:17 am

Hospitality Industry Health Insurance: Hotel Industry Must Comply With New Health Care Law Provisions For Automatic Enrollment, Waiting Periods And Coverage For Dependents

The hotel industry has some unique work-force characteristics that make the health-care reform law of particular interest, said Ron Kramer, partner with Seyfarth Shaw.

The abundance of part-time workers, seasonal workers and independent contractors, to name a few, will have a dramatic impact on how the hotel owners and managers accommodate the act’s many provisions, he said.

  • “There’s a provision that requires automatic enrollment for employers with 200 or more employees,” Kraft said. “That means they would have to automatically enroll employees.”
  • The waiting period for enrollment is being set at 90 days, which means many employers will have to shorten their current policies.
  • The act puts a prohibition on rescissions (cancellation of contracts) by insurance companies, except in cases of fraud. In the past, some insurance companies have been accused of scouring through a participant’s medical files upon huge claims to try to find some reason to rescind coverage.
  • By 2014, there will be no pre-existing conditions exclusions for any covered individuals.
  • While group health plans are not required to provide coverage for dependents under the act, they must extend that coverage to dependent children up to age 26 if such coverage already exists. Grandfathered plans must only extend that coverage if the dependent does not have any other employment-based coverage. By 2014, all plans will be required to provide coverage for dependent children.

For more:  http://www.hotelnewsnow.com/articles.aspx?ArticleId=3359&PageType=News&ArticleType=35

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by | May 19, 2010 · 4:11 am

Hotel Industry Health And Safety: Hotel Rooms Are A Haven For Germs And Potential Illnesses

 “A lot of times the cleaning crews will clean those glasses with the very same chemicals they’re using to clean your toilet.”

"There definitely can be hidden dangers in any hotel room, so you want to be smart,"

“…It might not just be germs lurking in your room. It could be infested with bedbugs. The problem is that you really can’t see them and they don’t just hide in the bed…”

 

Hotels, with their daily housekeeping, might seem like a haven from the dust, grime and filth of home. But be warned: germs can lurk in even the cleanest-appearing rooms. And you would be shocked where.

“…there is the TV remote control, probably the most touched item in the room. Not everybody is great about washing their hands and how thorough of a cleaning do you really think the remote gets?..”

For more:  http://abcnews.go.com/Travel/hidden-hotel-room-germ-magnets-tv-remote-water/story?id=10619191&page=1

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by | May 17, 2010 · 4:07 am

Hotel And Resort Spa Health Risks: Massage And Foot Treatments Can Expose Guests To Infections And Health Risks

“…While most of today’s spas promise to restore, refresh, and renew — and some offer even more explicit health claims — they generally don’t warn you of the potential risks involved. But they do exist. Certain spa treatments can worsen chronic and acute health conditions. All spas can pose risks to the general public, particularly when operated in a state of uncleanliness…”

(From a CBSNews.com article)

  •  People with diabetes need to take extra precautions when getting foot treatments. “Any break in the skin, potentially from aggressive trimming of a callous or cuticle, can increase the risk of foot infections called cellulitis,” says Sharon Horesh, MD, an internal medicine doctor with Emory University’s department of medicine.
  • When it comes to massage, experts say that the degree of risk involved depends on the type of touch applied. “The most important adaptation for chronic disease, like cancer, is touch level,” says Kathleen Clayton, a licensed massage therapist and spokeswoman for the American Massage Therapy Association. 
  • “…all potential massage-goers to receive massages only from licensed massage therapists….”
  • “In the second and third trimesters, women should specifically seek a pregnancy massage therapist and avoid massage techniques that involve long strokes along the legs or pressure between the ankle and heels,” Horesh tells WebMD.  There’s good reason to heed this advice. “There’s always a chance that it might make the baby dislodge, or induce premature labor,” explains Clayton.

     http://www.cbsnews.com/stories/2005/12/15/health/webmd/main1128859.shtml

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