Tag Archives: Insurance

by | April 3, 2012 · 1:37 am

Hospitality Industry Flood Risks: Ohio Restaurant Struggles To Reopen After "Flash Flooding" Damaged Buildings Not Covered By Flood Insurance

“(the owners)…had to replace all of the flooring and drywall in the restaurant. Some of the kitchen equipment had to be repaired, and everything else either was discarded or thoroughly cleaned…”

The buildings were not covered by flood insurance, but insurance did pay to fix the damage to their vehicles.

Not even 18 inches of water inside their restaurant, 3 feet of water outside and $60,000 in resulting damages and lost sales can curb the determination of Mark and Glenna Jones to reopen Clay’s Cafe, located on West Main Street in downtown Hebron.

The eatery, which has been in business for 15 years, closed March 15 after it was flooded as thousands of corn stalks came rushing into town. The Joneses were hoping to reopen by today, but have pushed their opening day back to Thursday.

The couple, who live in front of the restaurant, had all three of their buildings and four vehicles damaged in the flash flood.

For more:  http://www.newarkadvocate.com/article/20120328/NEWS01/203280308/Flood-damaged-Clay-s-Cafe-set-reopen-Thursday?odyssey=nav%7Chead

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by | · 1:37 am

Hospitality Industry Flood Risks: Ohio Restaurant Struggles To Reopen After "Flash Flooding" Damaged Buildings Not Covered By Flood Insurance

“(the owners)…had to replace all of the flooring and drywall in the restaurant. Some of the kitchen equipment had to be repaired, and everything else either was discarded or thoroughly cleaned…”

The buildings were not covered by flood insurance, but insurance did pay to fix the damage to their vehicles.

Not even 18 inches of water inside their restaurant, 3 feet of water outside and $60,000 in resulting damages and lost sales can curb the determination of Mark and Glenna Jones to reopen Clay’s Cafe, located on West Main Street in downtown Hebron.

The eatery, which has been in business for 15 years, closed March 15 after it was flooded as thousands of corn stalks came rushing into town. The Joneses were hoping to reopen by today, but have pushed their opening day back to Thursday.

The couple, who live in front of the restaurant, had all three of their buildings and four vehicles damaged in the flash flood.

For more:  http://www.newarkadvocate.com/article/20120328/NEWS01/203280308/Flood-damaged-Clay-s-Cafe-set-reopen-Thursday?odyssey=nav%7Chead

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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 11, 2012 · 1:10 am

Hospitality Industry Fire Risk: Ohio Hotel Fire Likely Caused By Electrical Problem In Ceiling Area Of Indoor Pool; Damage Exceeds $1 Million

“…The fire originated in the ceiling area of the indoor pool, it was likely an electrical problem, according to the release…”

“…Flames traveled from the overhang above the indoor pool to other walls in the hotel… Winds forced the smoke and fire up to the third floor and fanned the flames…”  

Holiday Inn Express employees stood huddled in thin blankets near Frisch’s Big Boy as firefighters from 10 departments attacked the building with axes and water. Smoke billowed from windows with punched-out screens on the southwest corner of the building at 773 Hebron Road. The three-alarm fire was fueled by a strong wind, up to 30 mph, from the northwest.

Firefighters tore into the building and tossed debris from open windows. Between fire truck sirens, the hotel fire alarm and radio calls of several chiefs, communication was challenging but achieved, Huggins said.

Investigators determined the damage exceeded $1 million, according to the release. Inspectors at the scene said the hotel’s fire alarm system and sprinkler system functioned properly during the blaze, according to the release.

For more:  http://www.newarkadvocate.com/article/20120309/NEWS01/120309003/Everyone-out-Holiday-Inn-Express-fire-continues

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by | February 28, 2012 · 1:17 am

Hospitality Industry Property Risks: New York Hotel's "Fatal Elevator Accident" Caused By Service Company's "Maintenance Errors"

Maintenance workers failed to enable a door safety circuit on an elevator moments before an advertising executive was killed after stepping into the elevator in an office tower in Midtown Manhattan, according to officials from the city’s Department of Buildings and the Department of Investigations.

According to officials, the workers did three things wrong:

  • They never re-enabled the safety circuit after performing the upgrade and restoring the elevator to normal service.
  • They did not post a warning that work was being performed, as required under the city’s building code.
  • They did not call the Buildings Department for an inspection, as legally required, before putting the elevator back into service.

If the circuit had been working properly, officials said, it would most likely have prevented the elevator from moving abruptly and pinning the executive, Suzanne Hart, inside an elevator shaft. As a result, the Buildings Department is suspending the license of the owner of the maintenance company, Transel Elevator, that performed the work and will seek to have the license revoked.

For more:  http://cityroom.blogs.nytimes.com/2012/02/27/city-blames-fatal-elevator-accident-on-poor-maintenance-work/

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by | February 26, 2012 · 8:23 am

Hospitality Industry Fire Risks: Hawaii Hotel Restaurant Fire Caused By "Gas Leak Behind Oven"; Originally Thought To Have Started In Grease Trap

“…Firefighters originally believed the fire had been started in the oven’s grease trap. However, twenty minutes later the fire reignited… Firefighters then discovered a gas leak behind the oven. Gas service was cut off to the restaurants fed by the line, and the fire extinguished…”

Fire safety officials will return to the Ala Moana Hotel later Wednesday after a fire broke out overnight at the Royal Garden Chinese Restaurant inside the hotel.  When firefighters arrived at the hotel shortly before 2 a.m., they found hotel staff using fire extinguishers to put out flames on the third floor restaurant.A hotel guest told KITV4’s Ryan Kalei Tsuji he was never alerted by a fire alarm. 
 
 The Ala Moana Hotel said an initial alarm was sounded, but the fire was quickly contained so guests could remain in their rooms. The hotel said the Honolulu Fire Department determined that a hotel evacuation was not necessary.Read more: http://www.kitv.com/news/30515611/detail.html#ixzz1nVKkYksE

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by | February 20, 2012 · 9:23 am

Hospitality Industry Property Risks: California Hotel Suffers Extensive Water Damage To 30 Rooms As "Cast Iron Pipe Connected To Fire Pump" Cracks; Seismic Shifting Possible Cause

“…(the hotel General Manager)…was in her office at 10:30 a.m. Thursday when she realized the carpet was “floating”…The source of the water was traced to a crack in a pipe that connects to a fire pump…a jackhammer was needed to reach the pipe, which is under cement…(the cause of the leak) is theorized (to be) seismic shifting, “not age, because it was cast iron…”

Santa Cruz Dream Inn, the city’s largest hotel, reopened about noon Friday after a 24-hour shutdown triggered by flooding on three floors that forced the hotel’s evacuation and relocation of 130 guests.

General manager Robin Donovan said Friday morning her staff has been working 24/7 to reopen the 163-room hotel. Because of the water damage, 30 rooms on the first three floors are “out of order,” she said.

Damages range from “light” to “extensive,” she added, estimating it would take 10 days up to three weeks to reopen those rooms. A dollar estimate was not available.

The hotel was empty Thursday night with guests relocated to other accommodations, including the Beach Street Inn & Suites, Chaminade, Holiday Inn Express and Scotts Valley Hilton.

For more:  http://www.mercurynews.com/breaking-news/ci_19988957

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by | February 5, 2012 · 6:32 am

Hospitality Industry Property Risks: Florida Hotel Suffers Major Water Damage As Fire Sprinklers Are Accidently Activated, Flooding First And Second Floors

 “…A guest in a room knocked off a sprinkler, accidentally setting off the fire extinguishers. The knock-off of the sprinkler was itself accidental…The third floor was not affected. But water damaged the second floor, and seeped down to the first, damaging that floor as well. About three or four dozen guests were evacuated…”

Palm Coast’s Holiday Inn Express, a three-story, 81-room hotel, was evacuated this afternoon when sprinklers went off on the second floor. The Palm Coast Fire Department and the county’s fire rescue department responded in force, but there was no fire. A guest in a room knocked off a sprinkler, accidentally setting off the fire extinguishers. The knock-off of the sprinkler was itself accidental. No one was injured.

The third floor was not affected. But water damaged the second floor, and seeped down to the first, damaging that floor as well. About three or four dozen guests were evacuated. They were invited to register at the Hampton Inn and Suites, just 50 yards away. The Hampton Inn and the Holiday Inn Express are owned by the same concern. The Hampton Inn’s lobby at mid-afternoon was teeming with people registering at the front desk and waiting in the lobby-dining area, as firefighters remained at the Holiday Inn.

The Holiday Inn is expected to be off limits to guests for about 24 hours as a company is brought in to dry the two floors affected, authorities at the scene said. Although the third floor is not affected, the hotel’s elevator has been shut down because of water leakage. Hotel officials would not comment.

For more:  http://flaglerlive.com/33914/holiday-inn-evacuated/comment-page-1

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by | January 29, 2012 · 7:10 am

Hospitality Industry Safety Risks: Texas Restaurants Receive "Dividends" Back From Workers Compensation Insurance Program For Maintaining "Successful Safety Programs"

“…dividends come back to restaurants participating in the TRA’s workers comp insurance program… creates incentives for the restaurants to have a safety program and to work with the insurance company and the employees to maintain a safer workplace….”

“Every year we get back … a little over half of our premium that we paid. So, it’s a big return of an expense,” says Lindskog whose company has been in the program since 2004. “A lot of people don’t want workers comp insurance because it’s expensive. But if you get half of it back, it makes it much more cost effective for your restaurant.”

Texas Mutual is the leading provider of workers comp insurance in the state. It was created by the Texas Legislature in 1991 when major reforms on workers comp became effective. Its board of directors is composed of individuals from companies it insures as well as those appointed by the governor of Texas.

For more:  http://www.bizjournals.com/sanantonio/news/2012/01/25/san-antonio-restaurants-score-rebate.html?page=2

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by | January 25, 2012 · 1:38 am

Hospitality Industry Property Risks: Texas Hotel's Insurance Company Sues "Irresponsible Hotel Guests" For Causing Fire Sprinklers To Flood 39 Rooms On Four Floors

“…the defendants damaged the hotel by hanging clothes on a fire sprinkler head mounted to the wall…the hanger broke the glass tube component in the sprinkler, which caused it to activate and release enough water to flood 39 rooms on four floors, a workout room and four corridors…”

An insurance company is suing over claims irresponsible hotel guests in River Oaks activated a sprinkler system, causing 39 rooms to flood. Lexington Insurance, on behalf of RLJ Development, filed a lawsuit on Monday, Jan. 23 in the Harris County District Court against Al J. Mizrahie, doing business as Belladonna U.S.A., and others, citing negligence.

Carpets, padding, drywall, baseboards, bedding, furniture and fixtures were damaged during the incident, the plaintiff claims.

For more:  http://ultimatemontrose.com/stories/315610-guests-accused-of-flooding-39-rooms-at-river-oaks-hampton-inn

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