Tag Archives: Insurance

by | October 6, 2013 · 7:56 am

Hospitality Industry Health Insurance: Restaurants That Are “Applicable Large Employers (ALE)” Must Comply With Affordable Care Act “Measurement Period” Beginning November 1; Workers Classified As “Full-Time” If They Work Over 30 Hours Per Week

Across the country, many restaurant operators are being forced to make a difficult choice: Do they hire fewer employees, reduce the hours of Hospitality Industry Health Insurancecurrent employees or raise menu prices? For some, the answer may be a combination of the three. But regardless of the conclusion they reach, there are no easy solutions…And they’ll have to make those decisions quickly, as the notification period begins in a few weeks and soon the Affordable Care Act will require businesses with 50 or more full-time-equivalent employees to offer health coverage to those employees or face significant penalties.

Without changes, the Affordable Care Act will hurt economic growth and make flexible work schedules for employees more limiting to offer.

The irony is that many restaurant owners already offer health coverage to their full-time employees. However, they define a full-time workweek as 40 hours, which is the accepted definition across most industries. Unfortunately, the Affordable Care Act has redefined “full time” employees as those who work an average of 30 hours per week in a given month. This means that restaurants and other businesses that have always operated as small businesses are now considered “large employers” under the law, and therefore are responsible for health care costs that could reach well into the tens of thousands of dollars.

While restaurant jobs are sometimes unfairly described as low-wage, menial work, the industry is one of the few that still allows employees to prove themselves and work their way up. One in every 3 Americans have worked in a restaurant at some point in their life, and many who work in restaurants chose to do so because of the flexibility in scheduling the industry offers.

This is an industry that accommodates part-time and full-time opportunities. It’s also an industry where people can begin their careers and work life with minimal experience, and learn not only about hospitality and service but also finance, advertising and other business and leadership skills.

Unfortunately, if the Affordable Care Act takes effect in its current form and redefines the full-time workweek as 30 hours, those opportunities could be significantly limited. It very likely means fewer hours for part-time employees and a more rigid scheduling structure.

For more: http://www.rollcall.com/news/obamacares_acute_affliction_on_restaurant_industry_commentary-228092-1.html

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by | September 20, 2013 · 5:39 am

Hospitality Industry Insurance Solutions: “Hospitality Workers’ Compensation Fundamentals” By Brad Durbin Of Petra Risk Solutions

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Petra Risk Solutions Education Partners

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by | August 31, 2013 · 8:15 am

Hospitality Industry Insurance Update: California Restaurant Employee Injured By Co-Worker’s Prank Entitled To Workers’ Compensation Only; Court Dismisses Lawsuit Against Employer

 “…The waiter received workers’ compensation benefits and sued his employer…The court explained that even if the exception extended to an workers compensation insuranceassault by a “managing representative” the waiter did not show that the lead cook was a managing representative. The lead cook did not exercise general discretionary power of direction and control over the restaurant business or even the kitchen. At most, she made decisions regarding the kitchen work in the evenings…The California Court of Appeal dismissed the suit, finding that workers’ compensation held his exclusive remedy…”

A pizza cook at a restaurant heated a pan before placing a pizza on the pan for a waiter to bring to a customer. Because the pizza pans were generally kept cool, the waiter picked up the pan with his bare hand. When he did so, he screamed and dropped the pan. He suffered serious and permanent burn injuries.

The waiter acknowledged that before his burn injury there was substantial horseplay among the restaurant employees. The employees routinely engaged in practical jokes. He claimed that after he burned his hand he saw the lead cook and other employees laughing.

The court rejected the waiter’s argument that exceptions to the exclusivity provision applied. He did not show that the employer committed a physical assault or had any involvement or knowledge of the incident or that the lead cook or pizza cook acted on the employer’s behalf.

The waiter also did not show that the employer or any managers were aware that the lead cook had any responsibility for his burn injuries or that she was involved in an assault toward him. A restaurant manager questioned employees about the incident but only learned that the pizza cook was responsible for placing the hot pan.

For more:  http://www.riskandinsurance.com/story.jsp?storyId=533354776

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by | August 5, 2013 · 6:16 am

Hospitality Industry Property Risks: Arkansas Restaurant Closed By Fire And Water Damage Reopens After 8 Months; Business Owners’ Insurance Pays For 80% Of Staff To Be Retained

“…Sixty employees were without work following the fire. The business owners’ insurance coverage allowed the staff to continue earning a Restaurant Fire Riskspaycheck while the restaurant was closed…Calico County partner Scott Blair said they retained about 80 percent of their pre-fire staff and hired about 40 new team members for the re-opening…”

Calico County was forced to shutdown after a fire damaged the restaurant (in the early morning on November 26, 2012)… Police were alerted to the fire after receiving a call from an alarm company that a commercial burglary alarm went off at approximately 2:37 a.m. Monday, according to dispatchers with the Fort Smith Police Department.

Fort Smith police arrived at the scene and alerted the fire department when smoke was seen coming from the building. Fort Smith Department Battalion Chief Tery Graves said responders quickly put out the flames, however, the restaurant suffered severe smoke and water damage. According to a preliminary investigation, the fire appeared to have started in the kitchen area of the restaurant.

For more:  http://5newsonline.com/2013/08/04/popular-fort-smith-restaurant-opens-back-up-after-fire/

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by | July 5, 2013 · 12:25 pm

Hospitality Industry Insurance Risks: Hotel And Restaurant Owners Relieved By Obama Administration’s One-Year Delay Of “Affordable Care Act (ACA)”; “Law Is Too Complicated And Costly”

“…employers are relieved that federal officials are delaying penalties for businesses that fail to provide health insurance for their workers, but they say the reprieve does not clear up worries that the requirement is too complicated and too costly…the hotel has 70 employees, many of health insurance nationalwhom do not buy the insurance coverage the hotel offers. The Ramada Inn pays half the cost of the insurance. Business leaders said the delay was inevitable…(employers) have not seen this big a change this ill-defined this close to the deadline…the question still is how this works, what we have to pay and what are the options…it’s just in terms of whether (employers are) going to be able to understand it…”

Businesses with more than 50 employees were to face escalating tax penalties if they did not provide workers with acceptable health insurance coverage by January 2014 as required in the national health overhaul law. President Barack Obama’s administration announced Tuesday it was pushing the deadline back to January 2015 because of confusion about the requirement.

The one-year reprieve is only for businesses. Individuals still must have insurance by 2014 or face penalties, and new online marketplaces called exchanges will help them find coverage, often at subsidized rates.

For more:  http://rapidcityjournal.com/news/businesses-relieved-by-insurance-delay/article_88b8e75c-e4fc-11e2-9b88-001a4bcf887a.html

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by | May 4, 2013 · 6:25 am

Hospitality Industry Insurance Risks: Hotels Must Purchase “Additional Terrorism Clause” To Have Losses Covered When Government Classifies Bombing Incidents “Acts Of Terror”

“…(after September 11 attacks) “acts of terror”  were excluded from (regular insurance) policies. They made it an optional add-on that businesses Acts of Terror Insurance Coveragehad to purchase separately to have damage covered that resulted from officially declared acts of terrorism, meaning the government’s categorization of the incident will determine who pays for what…”

The hotels located on or near Boylston Street are still trying to get their feet back under them after the tragedy in Boston, reeling from the lack of business associated with the incident’s aftermath. Hotels are looking to their insurance companies to cover their losses, but, interestingly enough, the payout depends upon whether or not the government officially declares the marathon bombings an “act of terror.”

 According to ABC News, President Obama called the bombings an “act of terror,” but the treasury secretary, attorney general, and secretary of state have yet to speak on the designation, and have set no time frame in which to do so.

“If there is no terror finding, damages would be covered in general under regular property-and-casualty policies,” Robert Hartwig, president of the trade group Insurance Information Institute, told ABC News. If it’s declared an “act of terror,” however, only those who purchased the additional terrorism clause would have their losses covered by insurance.

For more:  http://www.hotelchatter.com/story/2013/5/2/114339/2751/hotels/%22Terrorism_Insurance%22_a_Hot_Debate_as_Boston_Hotels_Still_Struggle_

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by | April 16, 2013 · 5:36 am

Hospitality Industry Health Insurance Solutions: Large Hotel Group “Incentivizing Employees” To Complete Risk Assessments And Increase Activities As Part Of Wellness Program

“…Company executives started by incentivizing employees to complete a risk assessment at no cost to them, and they would receive $50 for their trouble. Approximately 70% of employees participated in the program…(the company) added additional incentives to its wellness program such health insurance nationalas having employees voluntarily pick three activities to improve health. Activities included joining a nutritional plan such as Weight Watchers, joining a fitness club, joining a group exercise plan, getting a dental exam or telephone coaching…”

One of the leaders in addressing the future of health care in the hospitality industry is Loews Corporation. Beginning in 2007, Loews looked at how to improve employee health as part of a self-insurance program. The company saw the benefits of a healthier workforce not only costing Loews less for medical care but also fewer sick days on the job.

With this initial success, Loews increased the incentive to $200 the next year but required employees to agree to a telephone coaching program regarding their health. The participation level dropped to 22%. After walking around talking to employees, executives figured out that employees wanted to hear it from their own doctor. So, the program was adjusted and saw the participation rate increase dramatically. Now, employees go to their doctor to get a preventive exam and do a biometric screening.

Next year, in conjunction with ACA, Loews will remove the direct incentive but will have a two-tiered health plan where if employees have an annual biometric exam with their doctor and select three approved healthy activities to participate in, they will qualify for a lower cost plan. If not, the employee will have a health-care plan with a higher premium as required by their plan administrator.

The hope is that employees will become engaged in wellness activities, choose healthy living habits and help contain health-care costs below the Cadillac tax limit. If for any reason this does not happen, Loews employees have been brought into the discussion that the option of increasing the portion employees pay for their health-care premium, currently set at a low level, may become the only alternative. That’s a real incentive, and innovation at work.

For more:  http://www.hotelnewsnow.com/Articles.aspx/10292/Wellness-programs-mitigate-health-care-costs

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by | March 18, 2013 · 7:14 am

Hospitality Industry Property Risks: Minnesota Hotel Suffers Extensive Flooding And Electrical Equipment Damage From Broken Water Line

“…the waterline break occurred during a planned repair project and also flooded the skywalk tunnel under the street between the hotel and the hotel water pipe burstdowntown Duluth Public Library…the line that broke was not a city waterline but the hotel’s own service line running into the building…it appeared that a private contractor replacing the service somehow severed the line, triggering the flood of water…”

Officials with Duluth’s Radisson Hotel said Saturday evening that they’re still working to assess the damage caused by a broken waterline earlier this week, and there is no timeline yet for reopening. The waterline break on Wednesday night flooded the downtown hotel’s basement and disrupted electrical service to the building. About 80 guests had to be evacuated to other hotels.

“Hotel ownership and management teams are working as quickly as possible to determine the extent of the damage caused by the flooding and what equipment and work will be necessary in order to open the hotel,” hotel officials said in a news release Saturday evening. “As of (Saturday), that assessment continues and the Radisson is unable to provide an estimated time frame at this point in time. The safety and welfare of our guests and team members is first and foremost in determining when we will be able to open.”

Officials said they continue to work with other hotels in Duluth to relocate guests who had reservations at the Radisson. They said an update on the hotel’s status is expected by Wednesday. The Radisson has 268 guest rooms, in addition to its restaurant, meeting and banquet facilities.

For more:  http://www.duluthnewstribune.com/event/article/id/261688/

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by | March 16, 2013 · 6:42 am

Hospitality Industry Property Risks: Illinois Restaurant Fire Starts In Basement Water Heater; Significant Water And Smoke Damage

“…most of the damage happened in the basement at their Bucktown flagship…service will be halted there and Restaurant Fire in Chicago. NBC Chicago Facebooktheir Chicago French Market satellite…the main dining room in Bucktown sustained smoke damage…”

A fire that broke out in the basement of Lillie’s Q barbecue restaurant in the Bucktown neighborhood late Thursday night destroyed the restaurant and left a firefighter with minor injuries, officials said. The fire at 11:40 p.m. at the restaurant at 1856 W. North Avenue, officials said. Fire officials said the fire rekindled later at about 4:18 a.m.

Firefighters told restaurant officials that the fire likely started in a water heater in the basement, and not one of the smokers. There were also apartments above the restaurant.Chicago Police closed North Avenue in both directions near Wood Street while firefighters worked to contain the fire. After the fire rekindled at 4:18 a.m. firefighters returned to the restaurant and a firefighter sustained minor injuries at that point.

For more:  http://articles.chicagotribune.com/2013-03-15/news/chi-firefighters-battle-blaze-at-lillies-q-restaurant-in-bucktown-20130314_1_scorches-restaurant-spokesman-fire-officials

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by | March 4, 2013 · 7:17 am

Hospitality Industry Insurance Risks: “Slip And Fall Accidents” And “Cooking Fires” Represent Top Operational Risks For Restaurant Owners

“…more than 3 million foodservice employees are injured each year from slip-and-fall accidents. With an average cost of almost $21,000 per claim, this is a substantial risk when you consider the number of guests slip_and_fall accidentwho also fall each year in a foodservice establishment…”

Cintas Corporation, a nationwide leader in restaurant facility solutions, identified the top 13 hidden risks to restaurant operations in 2013. By identifying potential risks before they become a problem, restaurant owners and managers can reduce their exposure and maximize their bottom line by ensuring the proper programs are in place.

  • Slip and falls: According to the National Floor Safety Institute (NFSI), more than 3 million foodservice employees are injured each year from slip-and-fall accidents. With an average cost of almost $21,000 per claim, this is a substantial risk when you consider the number of guests who also fall each year in a foodservice establishment. Protect floors, workers, and patrons with a comprehensive safe-floor program that includes deep cleaning, protection, and ongoing maintenance.
  • Cooking fires: By knowing that the majority of restaurant fires occur around 10 a.m., restaurant operators can develop a fire protection system that prevents or limits the spread of cooking fires. Ensure that hood suppression systems are regularly inspected by a licensed fire protection provider so they are always in working order and ready to extinguish a fire. Also, have your kitchen hood and exhaust ducts cleaned of excess grease and fuel at regular intervals.

For more:  http://www.qsrmagazine.com/news/cintas-reveals-top-13-hidden-restaurant-risks?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+QSRmagazine+%28QSR+magazine%29

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