Category Archives: Liability

by | December 18, 2011 · 6:55 am

Hospitality Industry Information Security: Study Finds Hotels Are "Prime Targets" For Financial Data Theft; "Infiltration Of Smartphones Through Bluetooth Technology"

“…Hotels also are prime targets for people looking to steal financial data. In a study of 200 data-breach cases, Trustwave’s SpiderLabs, the online security company’s research arm, found 38 percent occurred at hotels or resorts…”

Two key challenges for travelers involve the use of unsecured wireless networks at hotels, airports and other public venues and the infiltration of smartphones through Bluetooth technology.

Identity theft can be a rude awakening for many business travelers. Last year, identity theft made up 19 percent of the 1.3 million complaints stored in the Consumer Sentinel Network, a secure online database available to law-enforcement agencies.

Experts say business travelers are especially vulnerable because they increasingly rely on electronic devices that easily can be lost or hacked. Credant Technologies, a data-protection company, found that travelers have lost 11,000 mobile devices at the busiest U.S. airports this year, 37.5 percent of them laptops and 37.2 percent tablets or smartphones.

“You are 15 times more likely to have your identity stolen than to have your car broken into,” said Todd Davis, chairman and CEO of LifeLock, an identity-theft protection company.

For more:  http://www.delawareonline.com/article/20111218/BUSINESS/112180321/Identity-theft-risk-increases-when-traveling?odyssey=mod%7Cnewswell%7Ctext%7CBusiness%7Cs

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by | December 17, 2011 · 11:35 am

Hospitality Industry Guest Safety: New York Hotel Elevator Malfunctions "Killing Hotel Guest" Hours After "Electrical Maintenance Repairs"

“…Electrical maintenance work was being performed on an elevator just hours before it malfunctioned, killing an advertising executive in Midtown…”

Photo by Hiroko Masuike/The New York Times

“…The last fatal elevator accident in the city also involved Transel: Robert Melito, 44, a technician for the company, was servicing an elevator on the 10th floor of a building at 230 West 38th Street on Sept. 23 when he fell to his death…”

Suzanne Hart, 41, was crushed to death on Wednesday morning after the elevator she was stepping into lurched upward, pinning her between the outside of the car and the wall of the elevator shaft.

Mr. Sclafani said the department would be conducting citywide sweeps of elevators maintained by Transel Elevator Inc., the company that serviced the elevators at 285 Madison Avenue, where the accident occurred.

The company maintains elevators at nearly a dozen prominent buildings in the city, according to Transel’s Web site, including the Graybar Building, the BMW Building and the Hippodrome Building. Additional clients listed on the Web site include Carnegie Hall and the Plaza Hotel.

For more:  http://www.nytimes.com/2011/12/16/nyregion/elevator-that-killed-yr-executive-was-undergoing-maintenance-city-says.html?_r=1

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by | December 16, 2011 · 7:03 am

Hospitality Industry Crime Prevention: Montana Police Task Force Trains Hotel Employees To Look For Evidence Of Drug And Prostitution Activity

Employees are taught to look for signs such as people who pay only in cash, give false vehicle information or don’t let housekeeping into their rooms for long periods of time.

The task force recently began implementing a program in which hotel and motel employees are trained to look for evidence of illegal drug activity coming from rooms, and to know who to call if they see something suspicious.

The recent arrests of three people suspected of running a prostitution operation in a room at the TownHouse Inn was a result of a tip made by an employee of the hotel to the Central Montana Drug Task Force.

The employee was trained by Sgt. Chris Hickman of the Great Falls Police Department, a member of the multi-agency task force, to recognize signs of suspicious behavior. While it was initially suspected that the three individuals were running a drug operation, Hickman said he was glad that officers were able to shut down the alleged prostitution as a result cooperation from hotel staff.

 According to Hickman, police are pursuing three active cases because of tips from cooperative lodging employees in Great Falls, but an unfortunate by-product of that cooperation can sometimes be a sullied reputation for the business if a tip leads to a publicized arrest.

For more:  http://www.greatfallstribune.com/article/20111214/NEWS01/112140311/Great-Falls-program-netted-prostitution-ring-relies-hotel-staff-tips

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by | December 14, 2011 · 6:21 am

Hospitality Industry Information Security Risks: Most Hotels And Restaurants Have Experienced A "Cyber Attack" In The Past Year; "Intellectual Property Protection" Is Too Often Ignored

“…Seventy-three percent of small-to-middle-sized companies experienced a cyber attack in 2010, and 30% of those attacks were extremely effective, according to Symantec, a software security developer based in Mountan View, Calif…”

“…estimates are that this year…the cost associated with each breach has gone up to $214 per record…Negligence is a big issue,” “

With the increase in worldwide cyber crimes, smaller private businesses may be more vulnerable than larger ones, said an executive of Chubb Group of Insurance Companies. “It’s the perfect cyber storm,” said Ken Goldstein, vice president of the Chubb Group of Insurance Companies. “We’re in a bad economy; we’ve got private companies, generally small to middle in market size, that are strapped in what they can spend on intellectual property protection,” he said.

At the same time, he said, new technology means “cyber thieves can essentially hack from anywhere around the globe.”

Cyber crimes can do serious harm to an organization’s bottom line. According to Ponemon’s, the median annualized cost of cyber crimes for the 50 organizations studied was $5.9 million, with a range of $1.5 million to $36.5 million. This represents a 56% increase since last year.

“Multiply that by the number of customers that you service; it could be a sizable amount of money that a company would have to pay out of pocket,” Goldstein said.

The most costly cyber crimes are those caused by malicious code, denial of service, stolen devices and Web-based attacks, Goldstein said. Besides deliberate cyber theft, Goldstein says company information loss sometimes is a byproduct of employee negligence. An employee losing their mobile device at a hotel or restaurant, for example, could lead to a breach, he said.

For more:  http://www.fa-mag.com/fa-news/9382-smaller-private-companies-at-greater-risk-of-cyber-attack-.html

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by | December 13, 2011 · 6:48 am

Hospitality Industry Reputation Risks: Hotel's Must Protect Against Events And Fallout From Attacks Against Company's Brand And Reputation

“… there is no shortage of reputational risks from social media and the Internet in general, from corporate manslaughter, money laundering, corporate corruption, and terrorism…”

With the boom in social media, interest in reputational risk has itself boomed. The term refers to a company’s risk of having its reputation damaged because of certain events or incidents and the fallout that takes place because of these incidents. In some cases, the effects can be severe enough to put a company out of business.

ReputationGuard was designed to help insureds cope with reputational threats, providing access to reputation and crisis communications firms Burson-Marsteller and Porter Novelli and coverage for costs associated with avoiding or minimizing the potential impact of negative publicity.

There are two categories of coverage:

  1. For reputation attacks: a public attack upon a company’s reputation. The costs of hiring communications experts from the Chartis panel and communications costs.
  2. For reputation threats: acts or events that the company believes, if made public, would have a material impact on the company’s reputation and would be seen as a breach of trust by the company’s stakeholders.

Insurers will not exclude any business segments but most interest is in those with revenues of $500,000 to $2 billion.

For more:  http://www.insurancejournal.com/uncategorized/2011/12/13/226947.htm

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by | December 10, 2011 · 8:18 am

Hospitality Industry Pool Risks: Hotel Pools And Spas Are Not Considered Safe If "Drain Covers Are Broken, Missing Or Cracked" (Video)

[youtube=http://www.youtube.com/watch?v=oRLG0iICT4w]

 

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by | December 9, 2011 · 6:55 am

Hospitality Industry Fire Risks: Louisiana Hotel's Rooftop "Electrical Room Fire" Extinguished By Sprinkler System; Building Suffers "Significant Water Damage" As Water Seeps "All The Way To Lobby"

“…the sprinkler system (stopped) the spread of the fire. But the building suffered significant damage from water that seeped from the roof all the way into the lobby…”

Officials are investigating the cause of a two-alarm fire on the roof of the Brent House Hotel at Ochsner Medical Center’s Old Jefferson campus that prompted the evacuation of a few hundred employees and hotel guests Thursday afternoon. There were reports of two people who suffered minor smoke inhalation, according to Joe Greco, director of the East Bank Consolidated Fire Department.

Firefighters went to the roof and discovered the source of the smoke was a 20-by-30-foot mechanical room that houses the building’s electrical panels and the elevator motors. Greco said the crew encountered heavy smoke and some flames in the room, but were able to extinguish the fire by 1:32 p.m.

The cause of the fire was still not known Thursday evening. Although there was speculation earlier in the day that the blaze may have started in the motor of one of the elevators, Greco said there was no evidence of that.

For more: http://www.nola.com/traffic/index.ssf/2011/12/nvestigators_look_for_cause_of.html

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by | December 8, 2011 · 6:54 am

Hospitality Industry Swimming Pool Risks: Hawaii Hotel Owner Must Face Trial Over "Near Drowning And Incapacitation" Of Woman

“Under Hawai’i law, a landowner has a duty to use reasonable care for the safety of all persons reasonably anticipated to be on the premises….Further, Hawai’i courts recognize that a hotel has a ‘special relationship’ with its guests […] to protect the latter against unreasonable risk of physical harm.”

     “…Court precedent found in 2010 with Robbins v. Marriott Hotel Services establishes that hotels may have to take extra steps to warn guests about “an open and obvious danger.”

 Royal Lahaina did not have an on-duty lifeguard, only a sign that said, “Warning: No Lifeguard on Duty,” according to the complaint.

A California travel agency must face a trial to determine whether it is liable for the near drowning of a woman who used a hotel pool despite a sign that alerted guests there was no lifeguard on duty, a federal judge ruled.

Song Meyong Hee is now “incapacitated” and “a vegetable,” after sinking in a Royal Lahaina Resort swimming pool and suffering severe hypoxia, according to the complaint filed by Song’s husband and children.

For more:  http://www.courthousenews.com/2011/12/06/42001.htm

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by | December 7, 2011 · 7:58 am

Hospitality Industry Employment Risks: "Americans With Disabilities Act" Amendment Has Broadened Definition Of "Disability"; "Employment-Practices Liability" Claims Expected To Rise Dramatically

“…As a result of the EEOC rulings, which broaden the definition of disability to include protections for employees with, for example, cancer, diabetes or epilepsy… the definition of disability under the law was “significantly expanded” by the ADAAA, and she also expects claims numbers to grow as a result.”

“…A person with diabetes…you must provide reasonable accommodations—a place to test blood sugar, a break to take medications and time to rest…”

“…It’s cheaper to purchase (the proper Employment-Practices Liability coverage] than to defend yourself against one of these claims…”

Steps taken by federal officials to broaden the definition of “disability” is putting pressure on employers—and insurers are forecasting an increase in employment-practices liability (EPLI) claims.

The Americans with Disabilities Act Amendments Act (ADAAA), which went into effect on Jan. 1, 2009, directed the U.S. Equal Employment Opportunity Commission (EEOC) to revise its regulations “to restore the intent and protections” of the original act, and to address what lawmakers felt was a too-narrow view taken by courts of the original ADA provisions.

For more:  http://www.propertycasualty360.com/2011/12/01/ada-amendments-broader-definition-likely-to-cause

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by | December 5, 2011 · 7:00 am

Hospitality Industry Property Risks: Arizona Hotel's Elevator "Free-Falls" Several Floors Injuring Female Guest

“…Right after the second-floor button lit up, she heard a loud noise and the elevator went into a free-fall mode…The elevator hit the ground. The woman broke her right ankle, and possibly her left ankle, too…”  

A woman suffered broken bones after the elevator she was riding in fell several floors at a Phoenix hotel Saturday night, fire officials said. The woman, who was not identified, was riding up to the third floor at the Embassy Suites at I-17 and Greenway, according to Capt. Scott McDonald of the Phoenix Fire Department.

It was not immediately known what caused the elevator to fall.

For more:  http://www.kpho.com/story/16185739/woman-hurt-in-falling-elevator

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