Category Archives: Liability

by | August 25, 2010 · 5:26 am

Hospitality Industry Risk Management: Management Must Train Staff To HALT If They Are “Hungry, Angry, Lonely And Tired” To Prevent Accidents, Mistakes And Bad Public Relations With Guests

 

"...Whenever (hotel employees) are hungry, angry, lonely or tired...(they) need to stop, HALT! In this state of being hungry, angry, lonely and tired (employees) are much more vulnerable to getting... buttons pushed...AND BAD THINGS ARE MORE LIKELY TO HAPPEN... "

Many hotel guests have all of these conditions going on upon arrival at the front desk. They have traveled a great distance, they are tired, and they may have not eaten in hours and as a result are angry or grumpy.  Any delays or unpleasant encounters will send this guest into a full fledge melt down going off on employees who may also be vulnerable. 

 In your hotel consider what investment goes into getting a guest to call and book a stay at your location?  How much advertising was done?  How many staff hired? How much time and energy in training with staff, operators and front-line?

How much patience and time was given to gain that guest trust?  Your building preparations and maintenance of the property? What did it take to have them call and give you their credit card and put their money into your hotel or establishment? 

Considering this investment is significant when in a moment that guest can be turned away by a negative encounter with one of your employees or managers. 

What took months and perhaps thousands of dollars to build can be lost in a moment. Your hotel and its ultimate success is only as good as its weakest employee. That might be a scary thought!  But even the best employee can be worn thin and not recognize their vulnerable condition.

For more:   http://www.4hoteliers.com/4hots_fshw.php?mwi=5338

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by | August 23, 2010 · 4:30 am

Hospitality Industry Trends: Hotel Ownership Should Consider “Green Lodging” Certifications As Healthier And Safer Business Practices

“… it creates a healthier environment for those working at a hotel, motel or bed and breakfast as more of the cleaning supplies use fewer chemically infused ingredients, fewer linens are laundered, cans, bottles and other goods are recycled and lighting, entertainment, and heating, ventilation and air conditioning systems become more energy saving and efficient…”

“Growing numbers of consumers, including families and conference planners, want to know that the hotel where they plan to stay is ‘green,’ ” says Amey Marrella, commissioner of the state Department of Environmental Protection, who this past week announced that the state just certified its 15th “green lodging.”

Being green, says the commissioner, can include increased energy efficiencies, water-use reductions or reducing, reusing and recycling materials found in a hotel, motel or bed and breakfast.

In addition, Marrella says being a certified green lodging hotel can provide that hotel or motel with a competitive marketing tool, in addition to the savings provided by reduced energy use.

By “greening a hotel,” the institution can become more efficient, become friendlier to its surrounding environment and, say DEP officials, bolster its bottom line.

For more:   http://www.theday.com/article/20100822/BIZ02/308229886/-1/BIZ

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by | August 22, 2010 · 8:17 am

Hotel Industry Fire Risks: Hotel Managment Must Have “Properly Maintained Fire Escapes, Exit Lights, Fire Extinguishers And Smoke Alarms”

“…inspection reports obtained by the newspaper showed the apartments did not have properly maintained fire escapes, exit lights, fire extinguishers or smoke alarms…”

The lawsuit filed by the families of Gerardo Reyes Perez and Humberto Hernandez Vanegas, who both died in the apartment building fire, was dismissed with prejudice, according to online court records. A dismissal with prejudice means the lawsuit cannot be refiled against building owner Corazon Peterson, also known as Corazon Moen, and her insurance companies.

A second wrongful death lawsuit has been dismissed against the owner of the Independence Hotel Tap that burned in February 2009, killing three men. The suit was dismissed after a “minor” settlement.

But the amount of the settlement is unknown. Judge John Damon approved an order to seal documents related to the case, including the settlement paperwork, and Moen as well as attorneys representing both sides of the suit did not respond to calls for comment.

The Hotel Tap building failed its last three fire inspections prior to the blaze that also killed Ronald Stuart Beck Sr. His family also filed a wrongful death suit, which was dismissed in June.

Moen denied the failed inspections when questioned by the Winona Daily News last year, saying smoke alarms and fire extinguishers were in the building at the time of the fire. But inspection reports obtained by the newspaper showed the apartments did not have properly maintained fire escapes, exit lights, fire extinguishers or smoke alarms.

The families of Perez and Vanegas contended in their lawsuit that none of the issues were addressed at the time of the February blaze, saying the building was in “general disrepair.”

The suit specifically cites anguish experienced by Perez’s brother Jose Reyes Perez and sister Blanca Morales. The pair were “at the scene of the blaze at its pinnacle and could only watch as the building burnt uncontrollably, and knowing their brother was inside, unable to escape,” the suit states.

Moen in her answer filed in March acknowledged the failed inspections but said the problems were fixed before the fire.

For more:  http://www.winonadailynews.com/news/local/article_34815248-ada3-11df-bd70-001cc4c002e0.html

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by | August 21, 2010 · 8:50 am

Hotel Industry Risks: Hotel Managers And Employees Must Spot Prostitution And Drug Risks When Local Guests Book Rooms For One-Week Or More

Police have started a program to educate hotel employees on how to spot prostitutes and drugs. One warning sign” When a guest with local address books a hotel room for seven or eight days, the Inquirer says.

Hotel prostitution became a high-profile last year when a woman who had advertised erotic services in a Craigslist ad was beaten and fatally shot at close range at the Boston Marriott Copley Place. Police ultimately arrested Philip Markoff, a medical student who was dubbed the Craigslist Killer, for her killing and other robberies of women in hotels. Markoff committed suicide in jail earlier this week.

Crime has been climbing at airport hotels over the last six to eight months, and Capt. Dan MacDonald III says that it can be linked to prostitution.

“This violence has resulted in numerous robberies, assaults and one homicide all directly related to prostitution going on at Philadelphia airport hotels,” the Daily News quotes him as saying.

Philly isn’t alone in fighting prostitution activity in airport hotels

For more:   http://travel.usatoday.com/hotels/post/2010/08/philly-police-bust-airport-hotel-prostitution-ring/108959/1

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by | August 20, 2010 · 5:40 am

Hospitality Industry Cybercrime Risk Management: “Cloud Computing” Providers Will Carry “Cyber Insurance To Mitigate The Risk Of Data Breaches Or Unexpected Downtime”

The manager of a fine hotel would never allow an electrician or plumber to work without being insured; it’s standard fare on service contracts in the physical world. Not so in cloud computing, where provider coverage in the form of cyber insurance is far from a given. This undoubtedly will change as businesses push providers to share the risks of a data breach or unexpected downtime, experts said.

Such large cloud computing providers as Salesforce.com Inc. do carry cyber insurance to mitigate the risk of data breaches or unexpected downtime, but “smaller providers are not carrying insurance and have no plan to [do so] until the larger customers push back and say, ‘You’re in our risk profile now,'” said Drew Bartkiewicz, vice president of technology and new media markets at The Hartford Financial Services Group, a cyber insurance company based in New York.

For the cloud computing model to work, cloud customers, as well as cloud providers, need to share the risk, according to Drue Reeves, director of research for the Burton Group in Midvale, Utah. If a provider were wholly responsible for the data of hundreds or thousands of tenants, it simply wouldn’t be able to buy enough insurance to cover the liability. To protect themselves in this risky situation, cyber insurers generally cap their policies at $10 million or $15 million, forcing providers and large customers to keep shopping, experts said.

For more:  http://searchcio.techtarget.com/news/2240021040/Cyber-insurance-mitigates-the-risk-of-data-breaches-in-cloud-computing

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by | August 19, 2010 · 10:16 am

Hospitality Industry Employment Risks: Hospitality Management Must Have “Valid” Reasons To Fire Employees

  • Make sure that you have a valid reason for firing (or laying off) the employee. Some invalid reasons include: retaliation, complaining about OSHA violations, discrimination, alien status, and any violation of public policy.
  • Keep it confidential: a company-wide Eblast is probably not the best approach to alerting others in the company of the employees’ situation. Rather, only telling those individuals that need to know is the best approach to ensuring that the employee does not hear about his firing before it happens.
  • Plan ahead: sounds simple enough, but by considering all the legal requirements you need to comport with before firing the employee, you will also alleviate a lot of legal concerns that may occur post-firing. This may include: severance offers, monies due, terms in the employment contract, company policies, etc.
  • Keep a paper trail: keeping copies of performance reviews, relevant correspondence, and other personnel documents will help protect you should there be a lawsuit later on.
  • The employee should not be completely surprised by the firing or lay-off. Whether it is keeping employees abreast of the struggling finances of the company, or alerting the worker to poor job performance, there should be a dialogue before the employment termination.

Although a majority of the American workforce is based on “at will” employment, essentially meaning that the employer-employee relationship can be severed at any time, there are still some viable concerns over a wrongful termination suit in any situation. Making sure you have a valid reason for firing an employee, and planning the conversation ahead of time will help with the actual firing and protect your company from many of the legal issues that follow.

In the end, honesty is almost always the best policy, and usually appreciated as the employee can take your reasons with them as they job hunt.

For more:  http://www.reuters.com/article/idUS348304971720100817

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by | August 16, 2010 · 8:28 am

Hospitality Industry Insurance Risk Management: Las Vegas Hotel Has Insurance Policy That Fails To Name Hotel As “Additional Insured”, Complicating Payment Of A Submitted Claim For Structural Damage

The floor collapsed and dropped almost a foot, resulting in damage to the structures of both the lounge and the hotel.

The Luxor also sought compensation as an “additional insured.” The lease between the casino and developer required the latter to name Luxor as an additional insured on all policies. No doubt the Luxor assumed (that dangerous word!) that this language covered its exposure to loss.

However, the developer’s insurance policy restricted the coverage of an additional insured. Luxor’s entitlement was limited to indemnification for money it paid to people injured by the developer’s acts or omissions. The casino was not entitled to compensation for its own losses…

The casino invoked the Unfair Insurance Claims Practices Statute, a law adopted by numerous state legislatures.

The Luxor Hotel & Casino Hotel contracted with a developer to construct and operate a restaurant called the Cathouse Lounge (nothing is subtle in Vegas) on the mezzanine level. The developer gutted the space, made structural modifications and installed new fixtures and equipment.

One night during Cathouse’s third month in operation, while a large crowd was enjoying good food and fun ambiance, a portion of the structure began to buckle. The floor collapsed and dropped almost a foot, resulting in damage to the structures of both the lounge and the hotel. The lounge was evacuated immediately. Thereafter the county Department of Building Services ordered Luxor to close both the Cathouse and damaged portions of the hotel pending repairs. Luxor hired an expert to determine the cause of the floor’s failure. Turns out the renovations were insufficient to support the sizeable number of people the lounge attracted.

Both Luxor and the developer paid to repair the structural deficiencies and for damage to their respective property. The Cathouse reopened in three weeks and submitted a claim to its insurance company. The Luxor also sought compensation as an “additional insured.” The lease between the casino and developer required the latter to name Luxor as an additional insured on all policies. No doubt the Luxor assumed (that dangerous word!) that this language covered its exposure to loss.

However, the developer’s insurance policy restricted the coverage of an additional insured. Luxor’s entitlement was limited to indemnification for money it paid to people injured by the developer’s acts or omissions. The casino was not entitled to compensation for its own losses. Yikes!

This is a very significant limitation. Luxor was seeking compensation for costs of repairing structural damage to its own facility, replacing its own destroyed property and interruption of its business. The insurance company denied the claim based on the indemnification-only coverage, and the court upheld the denial. This was not the plan Luxor had in mind when it included the requirement that the casino be listed as an additional insured in the developer’s lease.

But lawyers are clever folks and Luxor was well-represented. The casino invoked the Unfair Insurance Claims Practices Statute, a law adopted by numerous state legislatures. This act requires, among other consumer protection provisions, that insurance companies respond to claim letters within 30 days of receipt. The insurance company in the Luxor case waited months before acknowledging the hotel’s claim. The penalty for violation is mandatory payment of the claim. This is true even though the policy does not otherwise cover the claim. So the court awarded Luxor the money it sought. Sometimes the back door can be a great alternative.

For more:   http://www.hotelworldnetwork.com/legal/read-your-insurance-contract-closely-then-read-it-again

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by | August 13, 2010 · 10:07 am

Hotel Industry Health Risks: Hotel In Minnesota Has Laundry Chemical Sicken 6 Employees

A mix of laundry chemicals at the Crowne Plaza Hotel in Eagan sent six employees the hospital…

Paramedics were called to the hotel at 2700 Pilot Knob Road around 10:30 a.m. after a hotel worker collapsed near the pool. Two laundry chemicals were found nearby – Destainer (Sodium Hypochlorite solution) and Sour 21 (Hydrofluorosilicic acid), which when combined form a corrosive chemical that can be fatal if ingested.

The six employees were taken to Regions Hospital in St. Paul. Five were treated and released, with one staying overnight for observation.

The hotel was evacuated. 59 guests were registered for a stay at the hotel at the time of the incident, but not all were there at the time.

For more:  http://www.myfoxtwincities.com/dpp/news/minnesota/laundry-chemicals-eagan-crowne-plaza-collapse-aug-6-2010

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by | August 12, 2010 · 6:41 pm

Hospitality Industry Foodborne Illnesses: Poultry (17%), Beef (16%) And Leafy Vegetables Cause Most Illnesses Reported That Included 18 Deaths In 2007 In U.S.

Among the 497 foodborne outbreaks with a laboratory-confirmed single etiologic agent reported, norovirus was the most common cause, followed by Salmonella. Among the 18 reported deaths, 11 were attributed to bacterial etiologies (five Salmonella, three Listeria monocytogenes, two Escherichia coli O157:H7, and one Clostridium botulinum), two to viral etiologies (norovirus), and one to a chemical (mushroom toxin).

Foodborne agents cause an estimated 76 million illnesses annually in the United States (1). Outbreak surveillance provides insights into the causes of foodborne illness, types of implicated foods, and settings of foodborne infections that can be used in food safety strategies to prevent and control foodborne disease. CDC collects data on foodborne disease outbreaks submitted from all states and territories. This report summarizes epidemiologic data for the 1,097 reported outbreaks occurring during 2007 (the most recent finalized data), which resulted in 21,244 cases of foodborne illness and 18 deaths. Among the 497 foodborne outbreaks with a laboratory-confirmed single etiologic agent reported, norovirus was the most common cause, followed by Salmonella. Among the 18 reported deaths, 11 were attributed to bacterial etiologies (five Salmonella, three Listeria monocytogenes, two Escherichia coli O157:H7, and one Clostridium botulinum), two to viral etiologies (norovirus), and one to a chemical (mushroom toxin). Four deaths occurred in outbreaks with unknown etiologies. Among the 235 outbreaks attributed to a single food commodity, poultry (17%), beef (16%), and leafy vegetables (14%) were most often the cause of illness.

For more:   http://www.foodconsumer.org/newsite/Non-food/Disease/foodborne_illness_1208100621.html

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by | August 11, 2010 · 7:24 pm

Hospitality Industry Safety Risks: OSHA Inspectors Can Cite “Willful Violations” If Management Ignores Employee Complaints

A “willful” violation can occur if the employer knew that he was violating a standard or if he was reckless. A good way to convince an OSHA inspector of recklessness (and thus willfulness) is to ignore employee complaints of danger, or worse, accident reports.

A lawyer knowledgeable on OSHA issues will serve as a buffer between the agency and the company’s management. He can make sure that responses to document requests are neither too broad nor too narrow.

A careful employer will review employee complaints, accident reports and minutes of safety meetings, and make sure that every item properly is evaluated and if found to be a problem, either fixed or scheduled for fixing with alternative protective measures implemented in the interim. Employers should not allow unaddressed items in such documents to smolder in their files, ready to be fanned into willfulness by an OSHA inspector.

For more:   http://ehstoday.com/standards/target-new-osha-sheriff-1339/index1.html

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