Category Archives: Business Interruption Insurance

Hospitality Industry Insurance Update: “Business Interruption Coverage More Important Than Ever to Cyber Policies” (Video)


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London-based MGA, CFC Underwriting, has brought a new cyber product to market for large companies that goes beyond the traditional cyber product, says Graeme Newman, director of marketing for the company. In this video with, Newman discusses how the increased knowledge of cyber risks has led large companies to demand a more complete product that includes business interruption coverage and how CFC’s coverage addresses these exposures.

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Hospitality Industry Risk Update: “Methamphetamine Labs Pose Growing Problem, Expense for Hotel Owners”

“…The ingredients for meth and their byproducts, including ammonia, hydrochloric acid gas, lithium, sulfuric acid and pseudoephedrine,Meth Labs carry a plethora of possible side effects depending on the length of exposure….The size of most hotel rooms and the self-contained air-handling systems in them work in favor for decontamination crews. Since each room has its own heating and air-conditioning unit, the chances of the vapors getting into the rest of the building are slim…”

Gone are the days when making meth on the go was confined to low-end hotel rooms. The drug’s cooks are now finding their ways into hotels that any family might choose for road trips or weekends at various lake communities in the area.

“It’s not just happening in low-level hotels or strip hotels. It’s starting to happen in middle-class hotels,” said Joe Clark, operations manager for water and special projects at Protechs, a Fort Wayne company that does meth lab decontamination.

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Filed under Business Interruption Insurance, Crime, Guest Issues, Hotel Restaurant, Liability, Management And Ownership

Hospitality Industry Insurance Update: “Insurance Recovery for Business Interruption & Slowdown”

“…When claims arise, insurance companies will often look for ways to deny coverage or diminish their exposure to the loss. After charging you premiums based on the entirety of your business operations, these insurance companies should not be so quick to deny coverage to you on the grounds that Image you merely suffered a slowdown or partial interruption. If your insurance company is not fully cooperating, you should engage the services of an insurance recovery attorney who can assist you in getting the insurance company to honor its obligations under the policy…”

What happens when a hotel suffers property damage, whether by natural disaster or man-made accident, and is forced to close some or all of its rooms, amenities or services? It is important to understand how insurance can protect you from the resulting financial loss. In addition to potential recovery for property damage from your property/casualty policy, you may be able to recover lost revenue from your business interruption coverage. If your operations are disrupted, whether completely or partially, the language of your policy will determine if, and for how long, your insurance company will cover such loss.

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Hospitality Industry Risk Solutions: “2014 Hospitality Insurance & Loss Prevention Summit” On February 10 Presented By Petra Risk Solutions

Hospitality Insurance & Loss Prevention Summit Feb 10 2014 Petra Risk Solutions2014-HLC-Brochure-12-13-20131

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December 20, 2013 · 6:45 am

“Hospitality Lawyer” January-February 2013 Online Issue Features “Insurance Coverage For Food Service Industry Losses And Business Interruption”

2013 Hospitality Lawyer Jan Feb cover

Click on “Hospitality Lawyer” to view online issue

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Filed under Business Interruption Insurance, Insurance, Labor Issues, Liability, Magazines, Management And Ownership, Risk Management

Hospitality Industry Property Risks: West Virginia Restaurant Fire Caused By “Malfunction Of Freezer Compressor Unit”; Court Rules Owners May Not Seek Damages To Rebuild Business

After an investigation, the cause of the fire was found to have been a malfunction of the compressor unit and/or power cord…the plaintiffs claim the freezer was not safe for its intended use and also made claims of Restaurant Firedefective design, breach of implied warranty and negligence.

Porker’s made claims for destroyed property and lost business during restoration, but Goodwin’s Dec. 7 ruling concerned three types of other damages requested. They were the cost to build a new Porker’s, lost franchise and royalties fees and the cost of preparing the franchise agreement…Goodwin wrote Porker’s was harmed by the fire but not destroyed, and the insurance payouts were designed to get business resumed. The company requested $105,935 to rebuild in its lawsuit.

After being told it could not seek damages to rebuild itself, Porker’s Bar-B-Q settled its lawsuit against General Electric and Wal-Mart on the eve of trial. The lawsuit claimed they were responsible for property damages from a fire caused by a freezer GE made and Wal-Mart sold. It was filed in 2011 by Jack Bruer and Pam Napier, the owners of Jack and Pam’s who operated Porker’s, and the settlement was entered 10 days after U.S. District Judge Joseph Goodwin granted the defendants’ motion for summary judgment.

The plaintiffs claimed a General Electric freezer bought three years earlier at a Sam’s Club store caught fire and destroyed the business premises of Porker’s, located in Cross Lanes, on Aug. 19, 2009.

Despite insurance company payouts, Porker’s has been out of operation since the fire. During its years of operation, Porker’s never turned a profit, Goodwin wrote.

“The defendants rightfully point out that the plaintiffs stated in their deposition testimony that Porker’s restaurant closed not because of the fire but because the landlord refused to renew their lease,” Goodwin wrote.

Bruer planned to go back to business after repairs were completed, but they never got the chance. The plaintiffs claim the fire was still the proximate cause of the restaurant because it led to the breakdown in the relationship between them and the landlord.

Goodwin found that a reasonable jury could not agree with that argument.

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Filed under Business Interruption Insurance, Claims, Fire, Insurance, Maintenance, Management And Ownership

Hospitality Industry Property Risks: Massachusetts Hotel Roof Detaches During Storm Causing Water Damage

“…about 25 percent of the roof had become separated, and he said it is a possibility that more could become detached as the storm progresses…”

Earlier this evening, high winds damaged the membrane roof of the DoubleTree Hilton Hotel in Middleton and Danvers. Some of the roof started to separate, and the hotel is experiencing water damage as a result.

The Fire Dept. has notified the Middleton building inspector and electrical inspector, as well as the Danvers electrical inspector of the damage.

A few hotel guests staying on the recently renovated 8th floor were moved because of the water damage.

“The hotel staff is working to mitigate any water problems inside the rooms but as far as the actual roof repair that cannot be undertaken until the storm is over,” said Twiss, who said it would be too dangerous at this time.

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