Workers’ Comp Claims Plague Restaurant Industry

Workers shortages can lead to workers’ comp issues in restaurant industry

  • A shortage of workers in the restaurant industry is leading to more expensive and complex claims in workers’ comp even as claim frequency declines.
  • Marsh released its Restaurant Industry Practice 2022 Report and held a companion webinar, 2022 Restaurant Industry Loss Cost Trends.
  • The report and webinar analyze survey responses from 47 participating restaurant companies and detailed workers’ compensation and general liability loss data from 21 participating restaurant companies representing 30 brands.
  • The report was designed with cooperation from industry veterans to ensure front-line, hands-on usefulness to food service employers.
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Contractor faces prison for workers’ comp fraud 

  • A Florida contractor is facing up to five years in prison for unlicensed contracting during a state of emergency and workers’ compensation fraud,s.
  • On May 8, 2023, Eric Harris, proprietor of All Phase Renovation & Construction, was issued an arrest warrant for failure to secure workers’ comp — less than $20,000 and impersonation of a contractor during a state of emergency.
  • The investigation into Harris began after Elizabeth Zabel, a Fort Myers homeowner, claimed that she hired All Phase Renovation to do repair and remediation work after suffering extensive water damage from Hurricane Ian.
  • The contractor had said he had coverage and would provide proof, but Zabel only received a copy of the certificate of liability insurance.
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Compre Group buys SUNZ’ workers’ comp portfolio

  • Compre Group Holdings will acquire a workers’ comp legacy portfolio of SUNZ Insurance Company.
  • Approved by the Bermuda Monetary Authority, the transaction is structured as a loss portfolio transfer and has been underwritten by Compre’s class 3B Bermudian insurer, Pallas Reinsurance Company.
  • The portfolio comprises large deductible and guaranteed-cost workers’ compensation policies, according to Compre.
  • The Capital Advisory and Solutions team at Acrisure Re acted as a broker in this transaction.
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Colorado firm faces fines for exposing workers to trench cave-ins

  • OSHA determined GoldStar Excavation and Sewer outside Denver was ignoring the federal safety standards that could have prevented a trench collapse in Greeley in 2022 that led to the death of a teenage company employee.
  • In that incident, a 17-year-old GoldStar worker suffered fatal injuries after being struck in the head by a large chunk of asphalt.
  • A company foreman was injured on Aug. 13 when an unprotected section of the excavation wall caved in on them. The employees were working on a residential sewer connection.
  • After an investigation, the U.S. Department of Labor’s Occupational Safety and Health Administration issued a “serious citation” to the Commerce City contractor for violating federal law and proposed $15,625 in penalties.
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