Notable Hospitality Losses: 2011 – 2017

With summer approaching in the US – and after a particularly LONG winter – I’ve been dreaming of the warm sun and some sand in my toes! Which naturally got me thinking about the hospitality industry and what types of losses these service-oriented organizations experience.

As one might expect, the hospitality industry faces a broad spectrum of risks. Some of the larger losses involve lawsuits that become class actions, which continue over a number of years. We dug into Advisen’s loss data to see who, what, and where some of these losses are occurring.

Here are examples of two of these losses:

Nightclub Manager & Security Officers Fined for Assaulting Customer

$160 million was awarded to a nightclub customer who accused its manager and security officers of assault. According to the customer, they forced him to enter a security room and demanded for his identification and credit card after his bill had been paid. The security members and manager allegedly shoved the customer to the ground, causing his head to forcefully hit the concrete surface. The jury awarded damages for past/future earnings and past/future pain and suffering.

Construction Companies Held Liable for Collapse of Parking Garage That Killed Five Workers

A lawsuit was filed after a parking structure expansion at a casino/resort collapsed, killing five workers and injuring over 30 other construction workers. The construction workers involved in the accident had their cases consolidated and sued the resort/casino and other companies involved in the planning and  construction of the garage. The settlement amount included cash payments, previously settled cases, workers compensation payments to victims that will not have to be repaid, and future medical expenses. In addition, the Occupational Safety and Health Administration (OSHA) issued fines to four construction companies.

  • $101 million
  • $119.5 million OSHA Fines

Download Notable Hospitality Losses: 2007 – 2017

Learn more about these and other cases by downloading the 4-page PDF that highlights hospitality-related losses.