Tag Archives: Insurance

by | October 12, 2011 · 6:54 am

Hospitality Industry Insurance Solutions: "Hotel Reputation" Insurance Policies Can Now Provide Hotel Owners With Protection For "Brand Damage" From Guest Injuries, Food Poisoning And Health Risks"

The Hotel Reputation Protection 2.0 policy will protect hotels against a range of common causes of brand damage such as death or permanent physical disability of a guest, food poisoning and outbreaks of Norovirus and Legionnaire’s disease.

 The Willis-Kiln product will provide cover for lost revenue based on RevPAR figures. RevPAR is a performance metric used in the hotel industry to measure revenue per available room. The policy will also cover the cost of hiring a crisis management consultant following a potentially reputation damaging incident. Laurie Fraser, global markets leisure practice leader for Willis, said: “In the extremely competitive hotel industry, reputation accounts for approximately 30-40% of a business’s overall worth.

 Read more: http://www.insuranceage.co.uk/insurance-age/news/2116523/willis-kiln-launch-protection-policy-hotels#ixzz1aZw3mowj Insurance Age – Serving the broker community. Claim your free subscriptions today.

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

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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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Filed under Health, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

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by | September 9, 2011 · 10:39 am

Hospitality Industry Property Risks: Hurricane Irene Damage Forces Closure Of North Carolina Hotel Until 2012

 “…(a review of)…the situation with repair and restoration companies, insurance and safety inspectors, and a host of others, we have regretfully concluded that the safest option for our guests and associates is to temporarily close the hotel in order to thoroughly and efficiently complete the work,”

Damage from Hurricane Irene has forced the Sheraton Atlantic Beach to close for the remainder of the year. The hotel is now contacting all the groups and individuals who were booked through December 31.

An employee meeting is being held this afternoon. Ninety employees will be furloughed during the repair process, according to Barnes.

“We will be communicating with employees twice a week regarding our process and sincerely look forward to the opportunity to welcome everyone back after the first of the year, ” Barnes said. “Until then, we are working to place our employees in temporary positions and we welcome calls from employers who are looking for quality staff.”

For more:  http://www.witn.com/home/headlines/129527083.html

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Filed under Flood Insurance, Liability, Maintenance, Management And Ownership, Risk Management

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by | September 7, 2011 · 12:17 pm

Hospitality Industry Property Risks: Florida Motel Damaged By "Minor Tornado" That Tears Roof Off

“…the storm was accompanied by 35 mph winds but it was a wind burst, or a minor tornado according to eyewitnesses, that pulled the roof off the motel and placed a good portion of it next door on top of… Condos (next door)…”

Sixteen residents of the Holiday Isle Resort at 14711 Gulf Blvd., were displaced early Sept. 7 after a wind storm took about one-third of the roof off the building.

No injuries were reported when the storm struck shortly after 1 a.m. but the American Red Cross was on the scene to help the motel’s residents find temporary housing.

For more: http://www.tbnweekly.com/pubs/beach_beacon/content_articles/090711_bhb-01.txt

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Filed under Guest Issues, Insurance, Maintenance, Management And Ownership, Risk Management

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by | September 4, 2011 · 8:05 am

Hospitality Industry Insurance Risks: Hotel & Restaurant Owners Must Review And Update Insurance Coverage To Protect Their Businesses

  •  Proper insurance to value (ITV). The market sometimes offers blanket and agreed amount limits, which can help buyers overcome an instance where the insured has purchased too little building coverage.
  •  Business income limits. Most insurance buyers don’t take time to complete a BI worksheet—a valuable tool to determine proper exposure levels. The tool forces buyers and agents to address all aspects of a potential loss and its business impact.
  • Employee dishonesty limits. Hotel owners think they’ll never use this, and then learn their controller has been siphoning off small amounts of money for years, and the total loss is substantial.
  • Guest discrimination coverage. Hotels might buy employment practices coverage and not the guest coverage. Some specialty programs provide the coverage in the GL form.
  • Property in your care, custody or control. This is a “must have” for all hotels. Agents can offer this in the GL form or buy it as a legal liability (innkeepers) coverage on the crime policy.
  • Health care professionals as insureds. Resorts with spas have this exposure and need this coverage.
  • Valet parking services. Most full service upscale and luxury hotels and resorts offer valet parking services and need to be sure they are covered properly.
  • Ordinance and law. This is key property coverage with the ever-changing building codes. Buyers either buy too little or go without to help control cost. That’s not a good decision.
  • Green building coverage. The three key coverages are:

â—Š Green certified coverage. For a loss to a green certified building, coverage available from AGPOM will apply to rebuilding and additional expenses driven by regaining green certification.

â—Š Green upgrade coverage. This coverage pays the extra expense when a non-certified building opts to go green after a loss. Added costs might result from use of Energy Star equipment; eco-friendly lighting, paint and carpet; or water-efficient plumbing fixtures.

â—Š Green commissioning expense. This coverage provides for a commissioning engineer to inspect a newly built or repaired system after a covered loss to confirm operation at peak performance and expected efficiency.

For more:  http://ventureprograms.com/wp-content/uploads/articles/Hope%20For%20Hospitality.pdf

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Filed under Employment Practices Liability, Green Lodging, Guest Issues, Insurance, Management And Ownership, Privacy, Risk Management

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by | August 11, 2011 · 6:23 am

Hospitality Industry Property Risks: Rhode Island Hotel That Suffered "Extensive Damage" From River Flooding In 2010 Reopens After Insurance "Largely Covers Reconstruction"

“…The hotel’s lobby, front desk, restaurant, meeting rooms, guest rooms and information technology equipment were badly damaged, and the facility, which had celebrated its grand opening in September 2008, was forced to close…”

“…The (reconstruction) cost was largely covered by insurance… The chain had hoped to reopen its Rhode Island location within a year but was delayed by in part by a business restructuring…”

NYLO Providence/Warwick has undergone extensive renovations on the first floor, which filled with four feet of water after the nearby Pawtuxet River breached its banks in March 2010. Michael Mueller, chief executive officer of the Texas-based NYLO Hotels chain, would not say Wednesday how much was spent on reconstruction. Susan Shaw, the new general manager, said the 163-room hotel will open with between 35 and 40 employees, down from 60 at the time of the flood. It will add employees and should reach full capacity by early next year, she said.

During a recent fire inspection test, in which the emergency lighting system was activated, Shaw said it happened to be raining — prompting an unpleasant flashback.

For more:  http://www.boston.com/news/local/rhode_island/articles/2011/08/10/warwick_hotel_damaged_in_2010_floods_to_reopen/

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Filed under Business Interruption Insurance, Insurance, Liability, Management And Ownership

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by | August 5, 2011 · 6:38 am

Hospitality Industry Information Security Risks: "Cyber Attack Claims" Increase 56% Mainly Through "Rogue Employees, Malicious Attacks, And Mistakes By Outsourcing Firms"

“…The vast quantities of personal, identifiable information collected by the leisure and hospitality industry have made the sector a chief target for cyber attacks, according to Willis…with reports of a 56% rise in cyber claims over the past year….”

“…Rogue employees, malicious attacks, and mistakes by outsourcing firms appear to be the main culprits, with hackers getting ever-more sophisticated in their attempts to drain corporate databases of customers’ personal details…”

Willis warns that some breaches can cost in excess of $100 million and with more stringent data protection legislation coming into force, companies’ financial exposure to this type of crime will increase further.

“Recent breakthroughs include the introduction of identity theft solutions and Payment Card Industry fines coverage, which helps to protect companies from penalties linked to the mismanagement of credit card data.”

For more:  http://www.insurancedaily.co.uk/2011/08/03/hospitality-and-leisure-attract-cyber-attacks/

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Filed under Claims, Guest Issues, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Technology, Theft

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by | August 3, 2011 · 6:43 am

Hospitality Industry Employee Theft Risks: Maryland Hotel And Convention Managers Indicted For Theft In Employee Insurance Scam

“…authorities believe that Mohammad and Rowhani stole about $17,000 from roughly 19 employees who thought the money was being put into an account to pay for insurance…”

A trial date has been set for two Hagerstown Hotel and Convention Center senior managers who prosecutors allege stole about $17,000 from employees during an insurance scam.

Hassan Mohammad, 56, and his wife, Yasamane Rowhani, 47, both of 2142 Cathedral Ave. in Washington, D.C., were indicted by a Washington County grand jury on one count each of theft/scheme over $500 and conspiracy to commit theft/scheme over $500, according to Washington County Circuit Court documents.

For more:  http://articles.herald-mail.com/2011-08-02/news/29844890_1_trial-date-scheme-insurance-scam

 

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Filed under Crime, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Theft

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by | July 23, 2011 · 7:41 am

Hospitality Industry Health Risks: New Insurance Offerings Cover "Bed Bug Infestation, Loss Of Revenue And Guests' Risk Of Bringing Bed Bugs Home"

“…The new offering covers lost revenue resulting from treating rooms, as well as paying for the cost of eliminating the bugs…”

“…It can also cover business or leisure travellers against the risk of bringing bedbugs home from a conference or overnight stay…”

Lloyd’s underwriters have teamed up with insurance broker Aon and Global Excess Partners, an innovator in new insurance products, to develop a comprehensive bedbug insurance solution for travellers and the hospitality industry.

According to Lloyd’s, bedbug infestations are on the rise, causing hotel owners, landlords and businesses major problems.

High levels of infestation have been reported in the US and Europe, with New York topping the list of cities in a bedbug battle.

Bedbugs are regarded as the most difficult of pest to treat, more so than cockroaches, ants and termites, as they are elusive, can live for a year or more without eating and can withstand a range of temperatures from nearly freezing to 50 degrees Celsius.

For more:  http://www.insurancedaily.co.uk/2011/07/23/lloyds-and-aon-team-with-bedbug-offering/

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Filed under Claims, Guest Issues, Health, Insurance, Liability, Management And Ownership, Risk Management

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by | June 27, 2011 · 11:35 am

Hospitality Industry Fire Risks: Florida Hotel Is Nearly Destroyed By Fire Caused By Faulty Electrical System And Faulty Sprinklers, Extinguishers Fail To Work

“…the building had a series of problems, including a broken sprinkler system, empty fire extinguishers and smoke detectors without batteries…the building had electrical problems, too, including a sparking outlet in his room. The motel capped the outlet instead of fixing it…”

“…the fire spread from single room, got into the attic and raced throughout building, destroying nearly everything…”

A fire that caused the roof to collapse and burn through a wing of a 430-room Kissimmee motel late Sunday is still burning this morning. Eight people, including two firefighters, have been hospitalized from injuries caused by the blaze at the Vacation Lodge, which essentially functioned as an apartment complex.

The fire investigation, which will likely start Tuesday, will look into the alleged problems with the sprinkler system. Micheal White, who paid $135 a week to live in Room 1230, said he heard an explosion in Room 1305 before the fire broke out.

He said the motel has been in news recently after the water was shut off for 27 days for nonpayment.  He did not know if complex was built with firewalls designed to contain fires.

For more:  http://www.chicagotribune.com/news/nationworld/os-kissimmee-hotel-fire-20110626,0,2952712.story

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