Tag Archives: Workers Compensation Insurance

by | January 16, 2012 · 7:13 am

Hospitality Inudustry Insurance Risks: Restaurants Are Adding New "Business Innovations" That May Not Be Covered By Existing Insurance Coverages

“…Many (restaurants) are turning to innovations to grow their business. While that can be a plus for their balance sheets, it can also open the door to unexpected liabilities that their insurance policies were not designed to cover…”

Agents can head off this scenario and build a strong consultative relationship with their restaurant customers by asking key questions at renewal time. Here are some of the trends that could put restaurants at risk and the questions agents should ask their restaurant customers :

  1. Mobility. Has the restaurant added new services, such as delivery of meals using hired drivers with their own cars?
  2. Branch out businesses. Has the restaurant started a new line of business, such as catering?
  3. Trendy foods. Has the restaurant introduced new menu offerings as part of the strategy for attracting more customers, such as locally sourced foods, an emphasis on organic ingredients or assurances about non-allergenic ingredients?
  4. Additional payment methods. Is the restaurant accepting new methods of payment, such as online credit charges or smartphone purchasing?

All too often, the lack of appropriate coverage only becomes evident when a mishap occurs and a claim is filed. After someone has already threatened to sue for damages is usually a bad time for restaurant owners to discover they should have consulted with their insurance agent about their insurance needs before changing their business model.

For more:  http://www.propertycasualty360.com/2012/01/12/4-trends-that-can-put-restaurants-at-risk

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by | December 26, 2011 · 8:33 am

Hospitality Industry Employee Risks: "Introduction To California's Workers' Compensation System" (Video)

[youtube=http://www.youtube.com/watch?v=2udxkhH24Cc]

Learning the rights of an injured worker under California’s workers’ compensation system. This video follows several workers’ compensation case scenarios and provides basic information and resources for obtaining further assistance and/or information.

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by | October 22, 2011 · 5:20 am

Hospitality Industry Insurance Risks: California Hotel Owner Charged With Workers' Compensation Violations And Fraud

“…accused of dissuading an employee from seeking workers’ compensation after a work injury, fraud and making false claims. He is charged with two counts of insurance fraud, failure to maintain workers’ compensation insurance …”

The owner of a long-troubled Santa Cruz area inn is headed to trial on charges that he mishandled workers’ compensation and committed insurance fraud.

Sanjiv Kakkar, owner of Brookdale Inn and Spa, is accused of dissuading an employee from seeking workers’ compensation after a work injury, fraud and making false claims. He is charged with two counts of insurance fraud, failure to maintain workers’ compensation insurance and passing off bad checks, according to Kelly Walker, a prosecutor with the Santa Cruz District Attorney’s Office.

Kakkar appeared in court Friday with his attorney, Peter Leeming, to set a date of March 12 for a jury trial. A court date was also scheduled for December for a motion to consolidate the case with a second criminal case involving Kakkar. The latter case involves misdemeanor violations of health and safety codes.

Leeming said he is looking forward to finally taking the case to trial after multiple delays.

For more:  http://www.mercurynews.com/central-coast/ci_19167190

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by | September 22, 2011 · 12:16 pm

Hospitality Industry Employee Risks: Government Regulators To Enforce "Wage-And-Hour Laws" Regarding Minimum Wage And Overtime Pay; Multiple Fines To Hotel Owners Found Guilty Of "Wage Theft"

 “…Labor officials will target businesses that improperly label workers as independent contractors or as non-employees to deprive workers of minimum wage and overtime pay. Misclassifying workers also lets companies avoid paying workers compensation, unemployment insurance and federal taxes..”

Labor Secretary Hilda Solis has made increased enforcement of federal wage-and-hour laws a top priority since she took office in 2009. The department has focused on industries where so-called “wage theft” is considered a problem, including the hotel, restaurant, janitorial, health care and day care industries.

Patricia Smith, the Labor Department’s top lawyer, said sharing information between state and federal agencies could subject businesses to multiple fines.

“There’s more of an incentive to be in compliance because the cost of what we consider to be illegal activity has increased,” Smith said in an interview.

In the past, Smith said, a company might pay a single fine to a state agency for not making proper unemployment insurance payments. Under the new agreements, a state can share the information with the Labor Department, which also can seek fines and penalties for federal wage violations.

The violation also would be reported to the IRS, which can go after the company for unpaid taxes, Smith said.

States that have agreed to work with the Labor Department so far include Connecticut, Hawaii, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington. Labor officials from New York and Illinois plan to sign up in the near future.

For more:  http://online.wsj.com/article/AP1a153b15fbd44922854b2aff6f272223.html

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by | May 2, 2011 · 4:05 pm

Hospitality Industry Workers' Comp Issues: State Of Illinois Seriously Reviews Employee Awards, Employer Liability And Injury Review Standards

“…In just one example of how Illinois’ system is abused, a hotel maid recently was awarded a $42,500 claim for carpal tunnel after working less than 30 days and 180 hours at a Springfield hotel…”

  • The workplace should be the primary cause of the injury or aggravation of the previously existing condition
  • Employers should not be on the hook financially for injuries that occurred outside of the workplace or in the course of previous employment
  • Health care providers should use nationally recognized American Medical Association and utilization review standards when determining a person’s impairment and treatment following an injury
  • These AMA standards are used in more than three dozen states across the United States and provide a measure of objectivity
  • Workers who are injured while under the influence of illegal drugs or alcohol should not be entitled to workers’ compensation benefits
  • The only exception would be if they can provide that the workplace caused the injury
  • Illinois should limit “wage differential” awards that are currently paid for life
  • These monetary awards are designed to make up the difference between an employee’s pay before and after an injury and were never intended to be paid past retirement age

Read more: http://www.bnd.com/2011/05/01/1690712/guest-view-its-time-to-get-workers.html#ixzz1LJ1LGtpZ

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by | March 21, 2011 · 3:54 pm

Hospitality Industry Workers Comp Risks: Virginia Hotel Employee Awarded Workers Comp Benefits After Fall In Restroom Injures Shoulder Already Receiving Medical Treatment

The Virginia Court of Appeals found that a cook’s right shoulder injury was not related to a preexisting condition so it awarded him benefits.

  • A cook for a hotel slipped on a wet floor in the restroom at his workplace and fell, hitting his right shoulder against a sink.
  • Before the fall, he sought medical treatment for right shoulder pain.
  • He required further treatment after the fall and sought benefits.
  • The hotel argued that there was no causal connection between the cook’s fall at work and his shoulder injury and that his injury was a preexisting condition.
  • The Virginia Court of Appeals disagreed and awarded benefits to the cook.

The court said the cook had different diagnoses and treatments before and after the fall. The court noted that the cook was undergoing treatment for tendonitis before the fall and was diagnosed with a right shoulder strain, contusion, and sprain after the fall. The cook received injections both before and after the fall, but they consisted of different drugs. Additionally, the surgical recommendations before and after the fall differed.

The hotel also argued that the cook failed to disclose his prior shoulder injury to two doctors, so their opinions should not have been relied on. The court disagreed. One doctor noted that the cook’s past medical history was “noncontributory,” and the second noted that it was “negative.” The court said these terms did not necessarily establish that the cook did not inform the doctors of his previous shoulder problems. Rather, the terms could have been interpreted to indicate a lack of foundation for alternative causation.

For more:  http://www.riskandinsurance.com/story.jsp?storyId=533334406

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by | December 14, 2010 · 6:36 am

Hotel Industry Employee Risks: Texas Hotel Owners “Failed To Carry Workers’ Comp Insurance And Enforce Safety Procedures” Says Suit Brought By Banquet Service Employee Who Was Injured On Job

On or about August 13, 2009, Plaintiff suffered an injury to her right shoulder area when a co-worker, Banquet Manager, Gus Garza, suddenly and without warning struck her while opening a door which was intended to be an exit door instead of an entrance door as he was using it,” the suit filed Dec. 7 in Jefferson County District Court states.

She claims the defendant companies — HTL Operating doing business as Elegante Hotel and Investment Corporation of America — did not carry workers’ compensation insurance at the time of the incident. As a result, Howard claims she should be entitled to all common-law damages.

A Beaumont woman has filed suit against the owners of a hotel where she claims she was injured while working as a banquet server. Sharon Howard alleges she was performing her duties as a banquet server at MCM Elegante Hotel in Beaumont on Aug. 13, 2009, when she sustained injuries to her shoulder.

Because of the incident, Howard suffered a severe and permanently disabling injury to her right shoulder and has not been able to work, according to the complaint.

She blames the hotel for causing her injury and for the pain and suffering she endured, as well as the medical costs she incurred.

The hotel’s owners negligently failed to enforce proper safety procedure and failed to properly equip doors, according to the complaint.

In her suit, Howard is seeking a judgment in excess of the minimum jurisdictional limits of Jefferson County District Court, plus pre- and post-judgment interest, costs, attorney’s fees and other relief the court deems just.

John Werner of Reaud, Morgan and Quinn in Beaumont will be representing her.

For more:  http://www.setexasrecord.com/news/231951-hotel-server-sues-over-shoulder-injuries

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by | October 31, 2010 · 12:44 pm

Hotel Industry Employee Risk Management: Employee’s Use Of Stairs In Multi-Story Hotels Subject Them To “Significantly Greater Risk Of Injury” And Result In Higher Workers’ Compensation Benefits

“Because the employees’ periodic breaks were mandatory, Phillips was required to use the staircase six times during each shift. In fact, in its opening brief, Rio calculated that during the course of Phillips’ 17-year employment, she traversed the stairs approximately 25,000 times,’
 
“…the court concluded that the frequency with which Phillips was required to use the stairs subjected her to a significantly greater risk of injury than the risk faced by the general public. Consequently, Phillips should be awarded benefits, the high court wrote…”
 

The Nevada Supreme Court has ruled that although employers are not “absolutely liable” when employees are injured “on the job,” companies should apply the “increased risk test” to determine whether they are entitled to workers’ compensation benefits.

The justices explained the increased risk test in Rio All Suite Hotel & Casino v. Phillips. According to court documents, Kathryn Phillips was a poker and blackjack dealer at the Rio All Suite Hotel & Casino in Las Vegas. While taking her mandatory 20-minute break during her usual eight-hour shift, she walked down the stairs to the employee break room, slipped, and fractured her ankle.

Her treating physician determined her injury was work related, and Phillips had surgery to repair her ankle. But Rio’s third-party administrator, Sedgwick CMS, denied her claim saying Phillips did not prove the injury arose out of her employment.

“The types of risks that an employee may encounter during employment are categorized as “those that are solely employment related, those that are purely personal, and those that are neutral,” the high court said.

 

 

 

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by | October 18, 2010 · 9:38 am

Hospitality Industry Health And Safety: Use Of “Improved Safety Practices” And “Older Workers” Contribute To A Decrease In Workers Comp Claims

“Indemnity and medical severity for workers compensation claims continued to rise in 2009…

“…the frequency of workers comp claims dropped 4% in 2009 following a 3.4% decrease in 2008. A downward trend in claims frequency that started in 1991 likely will continue through this year, NCCI said…”

Factors such as increased use of robotics, improved safety practices and an aging workforce have contributed to the continuing frequency decrease, NCCI said.

Complex claims, such as those related to carpal tunnel syndrome and lower-back issues, declined more than average during the past five years, NCCI added.

Increasing claim costs, however, have partially offset the decline in frequency. Average indemnity costs increased about 4.5% in 2009 despite a decline in average weekly wages.

“It remains to be seen whether changes in average wage and indemnity cost per claim will begin to converge in 2010,” NCCI said in the research brief.

Average medical costs for workers comp claims rose 5% last year, the lowest increase in the past 15 years, NCCI said.

For more:  http://www.businessinsurance.com/article/20101018/NEWS/101019945

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by | August 10, 2010 · 3:27 pm

Hotel Industry Employee Injury Risk Management: Hotel Management Must Increase Training To Reduce Repetitive-Stress Injuries To Housekeepers

“Anybody who runs a hotel has to be crazy,” Davis said, not to address any problems that can lead to injuries among employees because of the implication for worker’s compensation.

Hyatt housekeepers had the highest risk of injury, according to the study. The lowest risk were with the Hilton chain. The problem is housekeepers are prone to repetitive-stress injuries from continually doing such things as changing sheets, washing bathroom floors and vacuuming.

Service workers, especially hotel housekeepers, have higher rates of on-the-job injuries, according to a report in the American Journal of Industrial Medicine.

The 2009 study analyzed injury records from 2003-05 at 50 hotels operated by the top-five hotel companies. Jobs studied included housekeepers, dishwashers, kitchen workers and banquet servers, representing 46 percent of the study population.

Since the study came out, the hotel industry nationwide has been looking at new ways to reduce injuries. Some properties have added extra employees for housekeepers don’t have to do heavy lifting.

For more:  http://www.news-journalonline.com/business/local-business/2010/08/07/hotels-seek-methods-to-reduce-worker-injuries.html

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