Tag Archives: Liability Insurance

by | October 25, 2013 · 5:46 am

Hospitality Industry Risk Solutions: “Liability Insurance: An Essential Precaution” For Hotel And Restaurant Owners By HospitalityLawyer.com

HospitalityLawyerOnce you have the proper coverage through a financially solvent company, ascertain that the amount of the coverage meets your needs.  To ensure that you fully understand how much you actually have for the entire period, it is critical that you become familiar with the following concepts and terms: per occurrence, aggregate and umbrella or excess insurance.

Hospitality Industry Liability Insurance CoverageYou must also be aware of “claims made” policies.  The term “claims made” means that the coverage is only available if an actual claim is brought to the attention of the insurance company during the policy period.  Usual insurance policies cover claims that occur during the policy period, although they are not brought to the attention of the insurance company until after the coverage period has elapsed.

HospitalityLawyer Converge Solutions

http://www.hlconverge.com/

When you buy liability coverage for your hotel or restaurant operation, you should receive a measure of protection and peace of mind, but for some reason you remain with that gnawing feeling that all may not be well with your insurance portfolio.  You think you did what you were supposed to do.  But did you?  Do you have enough insurance?  Do you have the right kind of coverage to cover possible accidents, incidents and catastrophes?  Employer’s liability?  Liquor liability?  Auto insurance for employees who drive a car on behalf of the business?  Do you know where your liability insurance policy is?  When was the last time you read it?  Do you understand the fine print?  Do you know who the underwriter is – not the agent, but the company that is supposed to pay in the event of a claim?  Do you know whether the insurance company is financially solvent?

Insurance Policy Coverage Checklist

1.  General Liability (fire and casualty for the premises and hotel operations)

2.  Employers Liability (discrimination claims)

3.  Workers’ Compensation (injury on the job)

4.  Liquor Liability (dram shop liability)

5.  Swimming Pool/Spa/Workout Area Addendums

6.  Golf Course Operators Liability

7.  Employee Security Bonds

8.  Automobile Liability (autos, motorized carts, shuttle service, etc.)

9.  Outdoor/Water Activity Coverage Addendum

For more:  http://www.hlconverge.com/index.php/component/k2/item/665-liability-insurance-an-essential-precaution

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by | December 22, 2012 · 7:21 am

Hospitality Industry Safety Risks: Gas Fireplace Manufacturers To Provide "Protective Screens" To Prevent Severe Burns From "Scorching Glass Fronts"

“…Under the voluntary standard, the glass is allowed to reach temperatures as high as 500 degrees or 1,328 degrees Fahrenheit, depending on the type of glass used. Up to now, most manufacturers have not provided Hotel Glass Fireplacesscreens or prominent safety warnings out of fear of marring the aesthetic appeal of fireplaces or scaring off customers…”

Some have argued that the risks of a fireplace are so obvious that keeping kids safe is simply a matter of good parenting and common sense. However, some child burn victims were hotel guests whose parents had no experience with gas fireplaces.

Fred Stephens’ 11-month-old daughter Lila had to have skin grafts on both palms after suffering third-degree burns from fireplace glass at a resort in the Wisconsin Dells in 2010.

To stave off regulation and lawsuits over severe burns to toddlers, manufacturers will provide protective screens as standard equipment with new gas fireplaces. The industry has revised its voluntary guidelines to call for the addition of mesh screens attached to new fireplaces to prevent contact with the scorching glass fronts.

Fireplace makers will have a long lead time — until Jan. 1, 2015 — to provide screens with new units, though companies are already retooling to do it sooner, said Tom Stroud, a senior manager with the Hearth, Patio and Barbecue Association.

As reported by FairWarning, more than 2,000 children age 5 and under were injured by contact with the unprotected glass in a recent 10-year period, according to a federal database. The injuries triggered at least a dozen lawsuits and scrutiny by the Consumer Product Safety Commission.

For more:  http://www.oregonlive.com/health/index.ssf/2012/12/new_gas_fireplaces_to_get_safe.html

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by | December 16, 2012 · 9:14 am

Hospitality Industry Insurance Risks: Pending Legislation Before Congress Deals With Medicare Payments, Workers' Compensation And Liability Insurance Claims

“…the Medicare Secondary Payer and Workers’ Compensation Settlement Agreements Act of 2012…deals only with workers’ compensation claims, and seeks to establish clear and consistent rules for workers’ workers comp medicalcompensation set-asides for claimants covered by Medicare…”

“…The Strengthening Medicare and Repaying Taxpayers Act…deals with issues related to the Medicare Secondary Payment Act. Specifically, it deals with mandates for providing timely information on conditional payments, penalties and statutes of limitations when claims are reported to the Centers for Medicare and Medicaid Services by insurers and self-insured and third-party payers on no-fault auto-insurance claims, workers’ compensation claims, and claims under liability insurance…”

Insurance and related industries are seeking to win support in the waning days of the current Congress for two pieces of legislation dealing with payment of injured worker claims to people whose primary insurance is Medicare. Officials of both the American Insurance Association and the Property Casualty Insurers Association of America are urging action on the bills this year.

Nathaniel Wienecke, PCI senior vice president, Wednesday asked officials of the Senate Finance Committee and the House Ways and Means Committee if it could act on the bill this year.

Currently, workers’ compensation claims that overlap with Medicare coverage are subject to lengthy, cumbersome review by the Centers for Medicare and Medicaid Services to establish the proper “set-side” coverage amounts for future medical expenses, according to PCI officials.

For more:  http://www.propertycasualty360.com/2012/12/14/insurance-reps-push-for-action-on-medicare-seconda?t=commercial

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by | September 5, 2012 · 6:17 am

Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

 “It is rampant in the restaurant industry…it is a
culture of post-shift drinking, and in some restaurants, drinking during the
shift. It’s almost like a fringe benefit in some high-end restaurants, this
tradition of drinking after work.”

Husk’s owner, Marietta, Ga.-based Neighborhood Dining Group Inc., and its insurer agreed last month to settle the suit for $1.1 million. The company denied fault or liability.

The fiery crash and lawsuit also have put restaurants across the USA on notice that a tradition at many restaurants — in which employees share a drink after work in a spirit of camaraderie — can have devastating consequences.

The 4 a.m. crash occurred last December, when Adam Burnell, 32, an assistant manager and sommelier at Charleston’s Husk restaurant, allegedly drove his Audi into the back of a Mustang driven by Quentin Miller, 32. The crash slammed Miller’s car into a concrete wall; it erupted in flames, trapping him inside. He died at the scene. Burnell, who prosecutors said had a blood-alcohol level of 0.24%, three times the legal limit, was charged with felony driving under the influence.

Miller’s family filed a wrongful-death lawsuit, alleging that Husk allowed Burnell to drink to excess on its premises after hours and then drive drunk. It was a stumble for a restaurant that was named “Best New Restaurant in America” by Bon Appetit magazine months earlier. Husk also was ranked one of the “101 Best Places to Eat in the World” by Newsweek magazine last month.

Burnell, who sustained minor injuries and is awaiting trial, was not named as a defendant.

Neighborhood Dining Group already had a policy that prohibits employees of its four restaurants — three in Charleston and one in Atlanta — from drinking on the premises, President David Howard says.

For more:  http://www.usatoday.com/news/nation/story/2012-09-04/restaurants-drinking-lawsuit-crash-south-carolina/57586486/1

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by | August 13, 2012 · 6:24 am

Hospitality Industry Legal Risks: Restaurant Owners Need To Obtain "Product Liability And Completed Operations Insurance" To Cover "Gluten-Free" Menu Items

“…a growing trend toward “gluten-free” menu items at America’s restaurants and catered events is increasing the demand for product liability and completed operations insurance, designed to protect food-service businesses against lawsuits arising from bad reactions to food products…”

The “gluten-free” trend is helping many establishments appeal to millions of Americans who are seeking gluten-free options for a variety of reasons, including gluten sensitivities (claimed by up to 10 percent of Americans, according to the National Institutes of Health) and celiac disease (diagnosed in about 1 percent of the U.S. population, or 3 million people). While offering more options for these customers makes for good public relations, it also opens the door to a new level of potential liability.

While any restaurant could face a lawsuit arising from alleged food poisoning or food allergies, those promising “gluten-free” menu items are at even greater risk of a lawsuit if a customer should choose these options and still have a reaction. Because there are currently no standards that define exactly what constitutes “gluten-free,” some restaurants may be promoting a “gluten-free” product that is prepared in the same area as foods containing gluten, raising the potential for cross-contamination. While many people with sensitivities may not have reactions to small amounts of gluten, others with higher levels of sensitivity could have a severe reaction, raising the potential for lawsuits.

Thankfully, food service businesses — including restaurants, catering businesses, and other food service providers — can protect themselves against the high cost of lawsuits by purchasing a type of insurance known as “product liability and completed operations” coverage. This insurance not only covers lawsuits related to gluten reactions, but also those related to other food allergies, food poisoning, or other injuries or damages caused by the products a restaurant or caterer sells.

For more:  http://www.restaurantnews.com/gluten-free-trend-spurs-demand-for-restaurant-liability-insurance/

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by | June 4, 2012 · 6:19 am

Hospitality Industry Legal Risks: Missouri-Based Restaurant Chain Settles $10 Million "Drunk Driving Lawsuit" Brought By Family Of Brain-Damaged Boy

The parents of Abdallah Khader, now 6, sought $10 million from Kansas City, Mo.-based Applebee’s in a civil lawsuit…Abdallah Khader suffered damage to 80% of his brain in the crash, and his family incurred massive medical expenses. Their lawsuit asked for $10 million to cover round-the-clock medical care along with lost future earnings, mental anguish, and pain and suffering — all typical damages in a personal-injury case.

The Khaders’ lawsuit accused workers at a Mansfield, Texas, Applebee’s of serving a man 23 drinks in less than two hours, leading him to drive drunk and crash into the Khaders’ car. A law firm’s investigation was key to the Applebee’s settlement, the family’s lawyer said.

The firm’s investigation dug up the alleged drunken driver’s Applebee’s receipts, which showed he paid for nearly two dozen drinks in a two-hour span. Police determined the driver’s blood-alcohol level was more than three times Texas’ legal limit, which is 0.08%.

The Khaders sued Applebee’s and the drunken driver, a repeat DWI offender who also faces criminal charges related to the crash. The driver’s criminal trial is pending, KTVT reports.

For more:  http://www.reuters.com/article/2012/05/31/tablogsfindlawcom2012-injured-idUS369201020620120531

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by | March 10, 2012 · 8:24 am

Hospitality Industry Legal Risks: Jury Awards Maryland Woman $225,000 In Nation's Largest "Bed Bug Liability Judgment"

On Thursday, a jury ordered Calidad Furniture & Linen Inc., the store that sold Jackson a pair of wood-frame beds, to pay Jackson and her sons $225,000 for the ordeal. It is one of the largest bedbug liability judgments in the country.

Multimillion-dollar lawsuits over bedbugs have become increasingly common as infestations have spread across the country and victims seek to hold landlords, hotels and retailers responsible for their exterminator bills and mental anguish.

But a public judgment is rare in bedbug liability cases. Lawsuits seeking millions of dollars in damages have received publicity in recent years, such as several filed against the Waldorf-Astoria hotel in New York. But most fade away with confidential settlements.

In July 2010, Adarien Jackson’s 6-year-old son, Kaden, began complaining of itchy bumps on his ankles. They soon turned into a rash and spread to his back, behind his ear, and on his eyelid.

The child’s pediatrician and dermatologists tried allergy drugs, diet changes, oils and oatmeal baths. But it wasn’t until months later that Jackson discovered the cause of the problem. Kaden’s twin brother, Kyler, began waking in the middle of the night, crying out, “Bugs are crawling on me!”

Jackson realized her sons’ beds — which she had recently purchased from a furniture store in Elkridge — were teeming with bedbugs, according to a lawsuit she filed in Anne Arundel County in December 2010.

 

For more:  http://articles.baltimoresun.com/2012-03-09/news/bs-md-bed-bug-verdict-20120309_1_bedbug-infestation-bunk-beds-bed-wetting

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by | March 5, 2012 · 8:43 am

Hospitality Industry Legal Risks: Illinois Hotel Sued For $75,000 By Woman Claiming Bartender Drugged And Sexually Assaulted Her

“…The bartender got a key to the woman’s room from the front desk staff and sexually assaulted her as she was passed out in the room, according to the lawsuit…”

“…The suit names the hotel as the defendant, claiming the staff was negligent in allowing the bartender access to the woman’s room. The suit seeks payment in excess of $75,000 plus the cost of court fees…”

A Virginia woman filed a lawsuit against a Lisle hotel claiming a bartender drugged her drink and later sneaked into her room with the help of a front desk clerk and sexually assaulted her.

The lawsuit, which was filed in federal court Wednesday, claims a 31-year-old bartender slipped a date-rape drug into the woman’s drink while she was at the Lisle-Naperville Hilton on Oct. 27. The woman began to feel ill at around 1:30 or 2 p.m. and went up to her room before her food had arrived at the hotel bar, said her attorney Jeffrey Deutschman.

For more:  http://www.dailyherald.com/article/20120229/news/702299617/

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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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by | July 28, 2011 · 11:04 am

Hospitality Industry Liability Risks: Florida Hotel Sued By Victim Of ATV Crash For "Serving Alcoholic Drinks" To Defendent

“…The lawsuit, filed in Miami-Dade County Circuit Court, contends that the Clevelander Hotel regularly allowed on-duty police officers to drink alcohol and hang out at its nightclubs…”
 
A lawsuit filed Thursday claims that a popular South Beach hotel regularly served alcoholic drinks to an on-duty police officer who later crashed his speeding all-terrain vehicle into two people strolling the beach before dawn, seriously injuring both.

The lawsuit filed on behalf of Kitzie Nicanor, 29, seeks unspecified damages from the Clevelander Hotel and Derick Kuilan, who was fired from the Miami Beach Police Department shortly after the July 3 crash. Kuilan, 30, also faces criminal charges in the case.

Nicanor suffered a traumatic brain injury that will likely require years of rehabilitation, said her attorney Frank Toral. Nicanor, a Seattle resident who has a 1-year-old son, remains hospitalized in stable condition. Her parents are caring for her son.

Earlier this week, Miami Beach Police Chief Carlos Noriega said his department was investigating whether on-duty drinking by officers, clearly banned under agency policy, was nevertheless more common than expected.

http://www.newsok.com/atv-crash-lawsuit-names-sobe-hotel-fired-cop/article/feed/280408?custom_click=pod_headline_usnational-news

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