Category Archives: Liability

by | April 24, 2010 · 5:51 am

Hospitality Industry Workplace Injuries: Over 4% Of California State Workers’ Comp Claims Filed For Hospitality Workers With Injuries Including Skin Wounds, Strains, And Other Injuries Leading To Over $1.1 Billion In Benefit Payments

The study detailed data on more than 137,000 claims filed by restaurant workers in California for work-related injuries that occurred from January 2000 through the end of 2008. Researchers said that more than 90 percent of the claims were filed by employees in restaurants and taverns. Workers employed in facilities such as wineries, country clubs and hotels were also included in the sample.

(From a RiskandInsurance.com article)   Total medical and indemnity benefit payments on these claims amounted to just under $1.1 billion. In addition to accounting for 4.1 percent of the state’s workers’ comp benefit payments, restaurant workers filed 6.1 percent of all California job injury claims.

Leading claims. The study found that the number one injury diagnosis for restaurant workers was minor wound/injury to the skin. Researchers said these injuries represented nearly one out of three restaurant claims, but only 4.4 percent of the loss payments because workers were treated quickly and returned to work with no lost time. On the other hand, medical back problems without spinal cord involvement — typically sprains and strains — made up less than one in five restaurant claims but carried a much higher average cost and consumed almost one-third of paid losses in this sector.

Rounding out the top five injury categories were shoulder, arm, knee and lower leg sprains (10.4 percent of the claims and 8.8 percent of paid losses); other injuries, poisonings and toxic effects (8.1 percent of the claims and 9.4 percent of the payments); and ruptured tendons, tendonitis, myositis and bursitis (3.8 percent of the claims and 6 percent of the payments). Researchers found that second- or third-degree burns represented 3.6 percent of the restaurant claims. However, burn injuries accounted for only 1.4 percent of the total dollars paid on restaurant claims (about five times the proportion found for all industries).

http://www.riskandinsurance.com/story.jsp?storyId=398239449

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by | April 23, 2010 · 5:45 am

Spa Pool Risks: Hopsitality Owners Should Be Aware Of Microorganisms Present In Spa Pools And Take Steps To Prevent Proliferation

 The risk potential of contact with pathogens through spa pool use has been exacerbated through the promotion of the therapeutic properties of spas. Spa treatments can provide suffers of muscular skeletal disorders, such as rheumatism, relief from pain. However, this has become confused with mineral spa treatments for general ailments. Consequently, many people suffering from common illnesses, such as influenza or digestion complaints, frequent leisure spa pools hoping to gain some relief from their symptoms. Unfortunately, such practice can introduce the bacteria into the Spa system and consequently increase the risk of infection for other bathers.

(From a NalcoEurope.com posting)   Spa pools are the third most common cause of legionnaires disease and are known to harbour other bacteria that can cause serious skin complaints and even blindness.

A commercial spa pool should be considered as any bath that consists of a self-contained body of water, which is recirculated, filtered, heated, and chemically treated but is not emptied and cleaned and refilled after each bather.

Due to the high water temperatures (30-40°C), availability of nutrients and convoluted design Spa pools are particularly prone to microorganism proliferation. Furthermore, due to the high level of contact between the bather’s skin and the spa surface, biofilms quickly form and so frequent cleaning is essential.

Continuous filtration to remove contaminants and the application of a disinfectant is imperative in order to ensure safe hygienic conditions.

Spa pools should not be considered as small swimming pools. Spa pools operate with much smaller volumes of water in relation to the number of bathers that use them. In addition, water temperatures are much higher as is aerosol generation and the general risk to bathers from the number of water borne pathogens.

The following table identifies the micro flora that are of particular concern in spas:

Bacteria Illness Description Other Detail
Shigella Diarrhoea, Fever, Nausea 1-3 day incubation, 4-7 day illness,
E Coli Diarrhoea, Vomiting, Fever 3-4 day incubation, & day illness
Giardia Gastroenteritis 7-12 day incubation, 7-10 day illness,
Cryptosporidium Diarrhoea, Vomiting, Fever, Cramps 7 day incubation, 10-14 day illness,
Legionella Flu Like Pneumonia Aerosols – SPA & HVAC
Pseudomonas Aeruginosa Follicultis – Swelling of Ear Canal Transmitted on Any Wet Surface
Mycobacterium spp Broken Skin Infections Bather Shed on Wet Surfaces
Mycobacterium. Avium Respiratory Illness – Flu Hypersensitivity pneumonitis Bather Shed.
Aerosol Transmission
Staphylococcus Aureus Skin, Wound, Eye & Ear Infections. Impetigo Bather Shed.
Leptospira Interrogans Weils Disease – Haemorrhagic Jaundice
Aseptic Meningitis		 10-20 day incubation, Pool Infected by Urine from Infected Humans and Animals

http://www.nalcoeurope.com/library/spa-pools-and-pathogen-risk-assessment.html

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by | April 22, 2010 · 6:29 am

Hospitality Industry Insurance: Directors And Officers Liability Insurance (D&O) Claims Rise Spurring Increase In Insurance Sales

“…agents report a slight uptick in D&O claims. Many believe these kinds of insurance claims will continue to increase, CAA reported…”

(From an InsuranceJournal.com article)   Austin, Texas-based Combined Agents of America LLC (CAA) members see a growing appetite among businesses and non-profits for directors and officers liability insurance (D&O), error and omissions insurance (E&O), and employment practices liability insurance (EPLI).

According to CAA, many of its 44 member agencies expect the growth to continue, and predict a rise in these kinds of claims because of the number of failing businesses in 2009 and the continuing layoffs.

“We have seen a rise in D&O and E&O. We used to quote it a lot, but not write it very often. Now, we write it most of the time when we quote it,” said CAA member Brent Borgstedte, CEO of GBS Insurance Agency of Bellaire, Texas.

CAA member Stephen Schmerbeck, president of Garrett Insurance Agency in Kerrville, Texas, said the renewal price for the professional liability products has remained stable.

Along with the increase in sales, agents report a slight uptick in D&O claims. Many believe these kinds of insurance claims will continue to increase, CAA reported.

http://www.insurancejournal.com/news/southcentral/2010/04/21/109183.htm

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by | April 21, 2010 · 7:08 am

Hospitality Industry Insurance: Health, Workers Comp And Liability Insurance Represent Fastest-Growing Expense For Hotel Operators

“….insurance is the fastest-growing expense for hotel operators in the country, according to an August report from PKF Hospitality Research, part of Los Angeles-based PKF Consulting…”

(From an InsuranceNewsNet.org article)   Though workers’ compensation insurance rates in California have fallen in the past year and a half, healthcare premiums continue to climb, the future of the Terrorism Risk Insurance Act is in question and property insurance is almost sure to increase after this year’s unprecedented hurricane season.

Last week, the California Medical Association released a report alleging workers’ comp insurers are interfering with and denying treatment to injured workers.

The group, which represents about 90,000 California doctors, suggested its members might have to cut back or discontinue treating injured workers because of reimbursement issues, raising the specter of a renewed battle over workers’ compensation.

http://www.insurancenewsnet.org/html/HealthInsurance/2010/0409/Property–Health-Insurance-Top-Hotel-Chain-Worries.html

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by | April 20, 2010 · 8:36 am

Hospitality Industry Risk: Cybercrime Is Targeting Smaller Companies Who Need To Employ Security Packages

“We are in an arms race with sophisticated, high tech enemies who are now concentrating on smaller business bank accounts in addition to their continued efforts to steal from large corporations.” To combat the risk, Conner suggests that small businesses employ a “triple threat” security package that would include

• Authentication 

• Fraud detection  

• “Out-of-band transaction verification and signing for high-risk transactions”

(From a USAToday.com article)    Authentication and fraud detection intuitively make sense – these sorts of products look at your transaction, and transaction history, and check for suspicious activity. Conner explained that while Entrust already offers the first two types of protection, to better serve its customers, it is adding that third, necessary layer, of protection with a new product being launched this week.

 “IdentityGuard Mobile” is an app for your smartphone. When a potentially suspicious activity begins to hit your account, this product sends you a text of the transaction details and asks you to authenticate and approve it before the bank can approve it.

 With the challenges to small business coming from all sides – decreased lending, tighter budgets, wary consumers – the last thing we need is to take a financial hit due to cybercrime, so we must be vigilant. Keep your security patches up to date. Make sure you have a robust antivirus suite. Change your pass codes frequently. Use the triple threat.

  http://www.usatoday.com/money/smallbusiness/columnist/strauss/2010-04-18-cyber-threats_N.htm

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by | April 18, 2010 · 3:19 pm

OSHA Laws Protect Workers And Insure Medical Bills And Lost Time Are Covered

(From a 24-7PressRelease)  While most employers make worker safety a top priority, as mandated and regulated by the Occupational Safety and Health Administration (OSHA), on-the-job injuries do still happen. This is the reason for the government-mandated Workers’ Compensation program. Workers’ Compensation is designed to compensate victims of workplace injuries and illnesses.

In general, the purpose of Workers’ Compensations laws is to ensure that all the injured worker’s medical bills and lost time are covered in exchange for ceding the right to sue the employer for negligence. However, the system is not perfect and problems can arise that prevent employees from getting the compensation they deserve.

Denial of benefits

While many employers act in good faith in the best interests of injured employees, getting them their benefits promptly and completely, some work to undermine Worker’s Compensation claims. This happens for one simple reason–profits. Most large employers are required to carry Workers’ Compensation insurance to ensure that funds are available to provide benefits.

However, employers can save money on insurance premiums by reducing the amount of benefits they pay out, and their insurance company is happy to help them.

Injuries not caused by accidents

Many workers assume that Workers’ Compensation only applies in cases where the injury was caused by a specific accident. In fact, you may be eligible for compensation for a wide range of injuries and illnesses caused by repetitive motion, daily tasks, or the workplace environment.

For example, carpal-tunnel syndrome and asbestosis can be qualifying conditions.

If you are injured on the job or become ill from workplace conditions, be sure to follow all of your employer’s reporting procedures. Failing to comply with your employer’s policies may jeopardize your claim and give the employer legal grounds to deny your benefits.

http://www.24-7pressrelease.com/press-release/workers-compensation-in-palm-beach-146904.php

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by | April 17, 2010 · 6:58 am

Hospitality Industry Insurance: Finding The Right Insurance Broker With The Proper Insurance Products For Your Business Is Essential

(From a BusinessInsider.com article)   As an entrepreneur /executive one of the decisions you need to make is who to use to help you insure your company.  

 For some reason many people go to great lengths to do due diligence when selecting an attorney or accountant, but then spend thirty seconds deciding who should handle their insurance.  

Those people tend to do business with one (or more) of five types of people. 

So here are the five types you meet when you buy insurance – and how they could impact your company.

1. The Buddy  -  You’ve just set up your company and you need the basics – General Liability, Workers Comp, Property, etc.  The guy on your whiffle ball team, who also helped you with your homeowners insurance, says he can hook you up!  He has no experience working with other companies like yours, no relationships with insurers that are familiar with your industry.  But he’s a great guy and he assures you it’s a no-brainer. 

He sends you some applications to fill out. The questions seem odd, don’t really apply to your company – and most of all it takes a sh*$! ton of time for you to complete.

You fax them back, wait a couple of weeks and he surfaces with a policy and a bill.

The Result:   No thought went into anticipating what you may need next – like Errors & Omissions when you sign your first client contract (E&O is coverage that addresses claims that your product or service didn’t work properly or caused some kind of harm to someone), Directors & Officers when you get your first round of financing (D&O is basically coverage that protects the management team and board from claims that they mismanaged the company), global coverage when you open a sales office in the UK, etc. 

 The insurer you are with – let’s call them Quicksand Mutual – can’t provide any of those coverages. So when they come up, which will be sooner than you think, there will be a mad scramble to find these policies with different insurers, costing you time and more money.

You end up with a disjointed, patchwork insurance program with multiple insurers and no economies of scale by having everything in one package.  Since your buddy has no experience in your industry, he has no ability to provide services that may drive down your cost and reduce the likely hood of your having a claim. 

Now you can get away with the buddy’s insurance program for a while – but if you have a claim, or need advice on a contract or industry specific issue you will find out the hard way that he was not the right broker for you.

2. The Biggest Broker in the World!  Your company is the next Facebook.   You have some high profile VC board members.  You need to work with the Biggest Broker in the World! 

In fact, one of those board members knows one of the top executives from the Biggest Broker in the World! from his country club.

The Result:  The Biggest Broker in the World! handles the insurance for companies like Microsoft, Dell and Cisco.  Their best talent handles those accounts.  Their average account brings in $50,000 of revenue in both commissions and other fees. 

 All of your policies combined will throw off a total of twelve hundred bucks of income.  You will have a lot of questions and need a lot of hand holding.  Your company will change a lot over the next couple of years – hiring and firing, adding locations, new products, new client contracts, etc.  

The Biggest Broker in the World! assigns you to their D team – maybe a recent college grad, maybe a service center…..until you can be more profitable for them.  Like when you are about to have your IPO. 

You’ll wait won’t you?  And will you also please let them know when you are bigger, cause no one at their company even knows they insure you.

3. The Butcher, 4. The Baker, and 5. The Candlestick-maker …. You already bought a policy from the Buddy (for this segment let’s call him the Butcher).  Now you open an office in San Jose.  The Butcher doesn’t have a license in CA and suggests that you contact someone local out there.   He knows a guy from insurance school, the Baker. 

 You call the Baker and he is happy to set you up with a set of new policies for your California office! 

Next, you land that big round of VC money and the term sheet says you need Directors and Officers (D&O) insurance.  The Butcher and Baker both say they can do it for you but you’re not so sure.  This one seems a little more sophisticated.  The VC suggests a broker that they use, that specializes in D&O insurance, the Candlestick-maker. 

This guy drives his Benz to your office, tells you about how he handles the D&O insurance for the last four IPO’s in the country and assures you that you are with the right broker (NOTE: some brokers specialize in specific types of policies as opposed to industry segments where they can handle all types of insurance for that niche.  This happens a lot with D&O as the premiums are usually high, and there is little or no service work involved – so they throw off a lot of income to a broker.  Hence the Benz.). 

He sets you up with a state of the art D&O policy.  It is the most expensive insurance policy you have ever seen.

The Result:  You have three brokers. 

 None of these characters communicates with the other.  You have overlapping coverages and therefore are paying duplicate premiums. 

None of them feel like they are “in charge” of your account, so they don’t make any recommendations, review/update coverage or take much of an interest in your company. 

None of them realizes you have salespeople working from their homes in 6 States and now each State’s insurance department is fining you for non-compliance on Workers Comp. 

You have bills coming in from 3 agents, at least 3 insurers and your bookkeeper can’t figure out which bill is for which policy.  A new client contract calls for evidence (a certificate) of insurance.  Hmmmmm, guess you gotta call all 3.  You have a claim and are unsure which policy would cover it, so you call all 3 brokers, none of whom think their policy will cover it. 

But go ahead and send it in; the insurers will fight it out.  Ahhh, music to your ears while your company is getting sued…

What to do instead:  So, when it comes time to get insurance – maybe the bank, landlord or VC is requiring it – rather than just hiring anyone so you can check a box and move on, spend a little extra time selecting your broker.  It will pay dividends down the road.  Here are some questions you should consider asking a prospective broker:
  •  What other companies in my industry/like mine do you work with?
  • Can I call someone at those companies and ask about your work?
  • My company is poised for growth an we expect a lot of moving parts – and insurance is not our main consideration.  How will you help us stay on top of these changes so we don’t miss anything?
  • Do the insurers you work with specialize in my niche and offer industry specific coverage?
  • What special services do you provide that will help me save time, reduce my premiums and minimize the possibility of us having a claim?
  • How much time should I expect to spend on completing applications?
  • Can you describe your smallest and largest clients?
  • Do you handle all areas of insurance for companies like ours or just one type of coverage?
  • Do you have any group buying programs where I can leverage the power of a bigger group in my industry?

Read more: http://www.businessinsider.com/the-5-brokers-to-avoid-when-buying-small-business-insurance-2010-4?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29&utm_content=Yahoo%21+Mail#ixzz0lK2TIRmK

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by | April 16, 2010 · 6:53 am

Restaurant Food Safety: Foodborne Illness Outbreaks Will Force Restaurant Operators To Increase Use Of Disinfectants And Sanitizers

Food safety product demand in the foodservice sector will also be boosted by efforts on the part of restaurant operators to avoid the devastating impact of a foodborne illness outbreak on their image. In particular, such efforts will include the use of more efficient disinfection products, which will fuel demand for disinfectants and sanitizers used in restaurants and other eating and drinking establishments.

(From a PRLog.org article)     US demand for food safety products is forecast to rise 6.6 percent per year to $2.9 billion in 2014. Recent high-profile foodborne illness outbreaks, in addition to large product recalls due to food safety concerns, will continue to fuel demand, as the prevention, identification and traceability of food contaminants will remain key issues for consumers, food industry participants and legislators. Demand for food safety products will also be boosted by the adoption of more stringent food safety regulations. For instance, projected increases in the frequency of food plant inspections will raise demand for diagnostic testing products.

Advances will also be supported by growth in food and beverage production, and expansion in the foodservice industry, as food processing plants and foodservice establishments constitute the largest markets for food safety products. Sales of smart labels and tags will exhibit the fastest gains, driven by the rapid adoption of new smart label technology in food packaging.

http://www.prlog.org/10627949-demand-for-food-safety-products-in-foodservices-industry-available-through-bharatbook.html

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by | April 14, 2010 · 5:41 am

Hospitality Industry Risk: “PCI Security Standards” Should Be Implemented By Hotels And Restaurants To Protect Customer Data

The PCI Security Standards Council will enhance the PCI DSS as needed to ensure that the standard includes any new or modified requirements necessary to mitigate emerging payment security risks, while continuing to foster wide-scale adoption.

(From a PCIsecuritystandards.org posting)   The PCI DSS, a set of comprehensive requirements for enhancing payment account data security, was developed by the founding payment brands of the PCI Security Standards Council, including American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. Inc. International, to help facilitate the broad adoption of consistent data security measures on a global basis.

The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. This comprehensive standard is intended to help organizations proactively protect customer account data.

The PCI Security Standards Council will enhance the PCI DSS as needed to ensure that the standard includes any new or modified requirements necessary to mitigate emerging payment security risks, while continuing to foster wide-scale adoption.

Ongoing development of the standard will provide for feedback from the Advisory Board and other participating organizations. All key stakeholders are encouraged to provide input, during the creation and review of proposed additions or modifications to the PCI DSS.

The core of the PCI DSS is a group of principles and accompanying requirements, around which the specific elements of the DSS are organized:

Build and Maintain a Secure Network

Requirement 1: Install and maintain a firewall configuration to protect cardholder data
Requirement 2: Do not use vendor-supplied defaults for system passwords and other security parameters

Protect Cardholder Data

Requirement 3: Protect stored cardholder data
Requirement 4: Encrypt transmission of cardholder data across open, public networks

Maintain a Vulnerability Management Program

Requirement 5: Use and regularly update anti-virus software
Requirement 6: Develop and maintain secure systems and applications

Implement Strong Access Control Measures

Requirement 7: Restrict access to cardholder data by business need-to-know
Requirement 8: Assign a unique ID to each person with computer access
Requirement 9: Restrict physical access to cardholder data

Regularly Monitor and Test Networks

Requirement 10: Track and monitor all access to network resources and cardholder data
Requirement 11: Regularly test security systems and processes

Maintain an Information Security Policy

Requirement 12: Maintain a policy that addresses information security

To further the adoption of the PCI DSS, the PCI Security Standards Council defines credentials and qualifications for QSAs and ASVs. The PCI Security Standards Council also manages a global training and certification program for QSAs and ASVs, and will publish a directory of certified providers on this Web site.

https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml

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by | April 13, 2010 · 5:17 am

Hotel Industry Theft: Criminals Target Small Hotel Flat-Screen TV’s To Steal

Alpharetta police said the thieves, a man and a woman, will rent a room to steal the televisions. They pay with cash and use a fraudulent driver’s license for identification.

(From a CBSAtlanta.com article)   A couple is stealing flat screen televisions from Alpharetta hotels, police said Thursday.

“It’s very frustrating because we put a lot of money and energy into the hotel, and somebody just checks in and decides to take it,” said Tracey Cox.

Cox is the manager of a Hampton Inn in Alpharetta that had two flat screens stolen this past weekend.

Alpharetta police said the thieves, a man and a woman, will rent a room to steal the televisions. They pay with cash and use a fraudulent driver’s license for identification.

Just hours before Cox’s hotel was hit, the thieves targeted another Hampton Inn in Alpharetta stealing three televisions. Alpharetta police said they’re also investigating if the couple is responsible for similar burglaries in other area cities.

The man and woman’s images were clearly captured on hotel surveillance cameras. Police have identified the woman and are looking for her. However, they’re asking for the public’s help identifying and locating the man.

“We want to prevent this from happening at other hotels, and we want to get the bad guy, because that’s a crime,” said Cox.

http://www.cbsatlanta.com/news/23090169/detail.html

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