With the holiday travel season approaching, hotels are preparing to welcome guests, deliver positive experiences, and protect their reputations. But some of a hotel’s biggest risks can arise long before the first guest checks in. These four real-world cases show why protecting a business involves looking beyond what customers see.
Judge Approves $106 Million Settlement in Partial Hotel Collapse Case — Liability
A judge approved a $106 million settlement following the partial collapse of an 18-story hotel under construction in New Orleans. The incident, which occurred in 2019, killed three people and damaged nearby property and businesses. Multiple lawsuits followed the collapse, including one brought by the City of New Orleans against the building owners, their partners, and contractors. The claims were later consolidated into a single case involving 490 plaintiffs and 21 defendants. The court-approved settlement provides compensation to affected claimants and resolves a dispute pending for more than six years.
Jury Awards $88 Million in Hernia Mesh — Product Liability
A medical technology company was ordered to pay $88 million after a hernia repair mesh allegedly damaged a patient’s intestines. The mesh contained a temporary coating designed to prevent the polyester material from bonding to patients’ bowels. However, according to the lawsuit, the protective coating degraded more quickly than advertised, allowing the mesh to adhere to the plaintiff’s bowel. The plaintiff required surgery to remove the device, along with a 3-inch section of his intestine. He was left with recurring hernias, periodic infections and a nonhealing wound. Following a three-week trial, the company was found liable for failing to adequately warn about the product’s risks. The jury awarded the patient $77 million in damages and his wife a further $11 million for loss of consortium. The lawsuit was filed as part of a multidistrict litigation involving hernia mesh claims and is considered a bellwether case for similar lawsuits.
Oregon Farming Operation Agrees to $6.2 Million Settlement After Allegedly Contributing to Groundwater Contamination — Environmental Liability
An Oregon farming operation agreed to pay $6.2 million to settle claims alleging it contributed to groundwater contamination in the Umatilla Basin. According to the lawsuit, wastewater was applied to agricultural fields at levels exceeding what crops could absorb, allowing nitrates and nitrogen to seep into groundwater. Local residents will use the settlement funds to extend or modify their wells to access uncontaminated groundwater and expand connections to public water supply systems. The company said it will continue using best management practices to help prevent nitrates and nitrogen from entering groundwater, including monitoring nutrient levels before and after wastewater is applied to farm fields. Litigation against other defendants accused of contributing to the contamination is expected to continue.
Food Distribution and Logistics Company Reaches $1.5 Million Settlement in Discrimination Lawsuit — Employment Practices Liability
A food distribution and logistics company agreed to a $1.5 million settlement after allegedly engaging in discriminatory hiring practices. According to the lawsuit, the company’s CEO and other executives refused to hire women, Afghan, Black, and/or African American applicants for certain positions based on discriminatory stereotypes and assumptions. For example, the lawsuit referenced a handwritten note from the CEO instructing managers not to hire beyond a certain number of Black applicants because he allegedly believed they were “lazy.” Furthermore, when an HR manager opposed such practices, she was harassed and later discharged. Under the settlement, $900,000 will be distributed to the women, Afghan and Black and/or African American individuals in the case, and $600,000 to the HR manager and her attorney. The company will also be required to hire an outside consultant to review its employment policies and compliance with anti-discrimination and anti-retaliation laws.
The risks facing your business may extend further than you think. Taking a closer look at your operations, contractual responsibilities, and insurance program can help uncover potential coverage gaps. Contact our team to discuss whether your coverage is keeping pace with your business’s risks.
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This publication is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice. Readers should contact a licensed insurance professional or attorney for appropriate advice. ©2026 Zywave, Inc. All rights reserved.
