Category Archives: Management And Ownership

by | June 27, 2011 · 11:35 am

Hospitality Industry Fire Risks: Florida Hotel Is Nearly Destroyed By Fire Caused By Faulty Electrical System And Faulty Sprinklers, Extinguishers Fail To Work

“…the building had a series of problems, including a broken sprinkler system, empty fire extinguishers and smoke detectors without batteries…the building had electrical problems, too, including a sparking outlet in his room. The motel capped the outlet instead of fixing it…”

“…the fire spread from single room, got into the attic and raced throughout building, destroying nearly everything…”

A fire that caused the roof to collapse and burn through a wing of a 430-room Kissimmee motel late Sunday is still burning this morning. Eight people, including two firefighters, have been hospitalized from injuries caused by the blaze at the Vacation Lodge, which essentially functioned as an apartment complex.

The fire investigation, which will likely start Tuesday, will look into the alleged problems with the sprinkler system. Micheal White, who paid $135 a week to live in Room 1230, said he heard an explosion in Room 1305 before the fire broke out.

He said the motel has been in news recently after the water was shut off for 27 days for nonpayment.  He did not know if complex was built with firewalls designed to contain fires.

For more:  http://www.chicagotribune.com/news/nationworld/os-kissimmee-hotel-fire-20110626,0,2952712.story

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by | June 26, 2011 · 5:59 pm

Hospitality Industry Employee Risks: Hotel Management Should Use Employment Contracts Which Are "At Will", Do Not Discriminate And Define Scope Of Employment; Comprehensive Insurance Should Be In Place At All Times

Hotel Management and owners should set up uniform employment contracts, which:

  • Do not discriminate against people based on any of the protected classes as defined by federal or state law;
  • Define the scope of the employment;
  • Say if the employment is for a term or “at will”;
  • Assign the pre-corporate formation intellectual property to the company;
  • Assign all subsequently created intellectual property to the company; and
  • Protect the corporate intellectual property from disclosure.

The last two categories of protecting intellectual property of the company can be accomplished by drafting non-disclosure agreements, and Proprietary Invention Assignment Agreements.

Insurance – Getting insurance for your company is a bet worth taking, given the potential unpleasant surprises of not being prepared. Again, your needs will vary depending on your company, but among the standard offerings are:

  • Comprehensive General Liability Policies (“CGL”) – A CGL policy is usually geared towards protecting a company from personal injury;
  • Directors and Officers (“D&O”) Insurance – D&O insurance may cover the wrongful acts of the officers and directors of a company;
  • Advertising Injury Insurance – Insurance that covers defamation, invasion of privacy, copyright infringement and other intellectual property injuries. (The advertising injury is usually a part of a larger policy, like a CGL, and not a policy onto itself.); and
  • Employment Practices Liability Insurance (“EPLI”) – The EPLI is a specialized insurance policy protecting companies against employment lawsuits.

For more:  http://venturebeat.com/2011/06/27/4-legal-pitfalls-startup-owners-must-face/

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by | June 24, 2011 · 4:35 pm

Hospitality Industry Credit Card Risks: Man Who Stole Texas Hotel Guests' "Credit Card Receipts" And "Manufactured Counterfeit Cards" To Purchase Merchandise Sentenced To Five Years In Prison

“…Authorities said Jones and another man, Randy Ray Flaharty, 31, took boxes of monthly credit card receipts of hotel guests from a storage room…”

“…The receipts, officials say, were used to manufacture counterfeit credit cards in document “boiler rooms” and card “chop shops,” which they then used to buy $300,000 worth of merchandise in Texas, Oklahoma and Louisiana...”

“…The cardholders never realized their credit card accounts had been compromised until months, even years, after they stayed at the hotel. But the damage made it hard for some of them to get loans and left lingering headaches in trying to straighten things out, officials said…”

A San Antonio man was sentenced Friday to more than five years in federal prison for stealing thousands of credit card receipts from the Emily Morgan Hotel. The theft allowed conspirators to buy hundreds of thousands of dollars worth of merchandise in three states, authorities say.

Cody Quincy Jones, 34, pleaded guilty in April to ID theft fraud, access device fraud, and aggravated ID theft. Chief U.S. District Judge Fred Biery gave him 41 months for the ID theft fraud charge and 41 months for the access device count, to run concurrently. The judge imposed 24 months on the aggravated ID theft charge, to run consecutively.

The merchandise, which included trailers, televisions, all-terrain vehicles and tires, then was resold or pawned.

The hotel didn’t learn of the thefts until August 2008, and since then, a Secret Service-led task force has ascertained it was San Antonio’s largest identity theft case, with at least 17,000 receipts stolen.

Read more: http://www.mysanantonio.com/news/local_news/article/Conspirator-in-record-setting-I-D-theft-sentenced-1439169.php#ixzz1QF7XXhYu

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Filed under Crime, Guest Issues, Insurance, Management And Ownership, Privacy, Risk Management, Technology, Theft

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by | June 23, 2011 · 6:54 am

Hospitality Industry Employee Risks: Hotel Management Must Maintain "Employment Practices Liability Insurance" To Protect Against Expensive Litigation Defending "Frivolous" Employee Lawsuits; "Arbitration Agreements As Conditions Of Hiring" Also Helpful

“…based on the new case law, an employer that wins in court can’t even recover attorney fees for frivolous claims, if they overlap with other claims that are viewed as “non-frivolous.”

“…Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying…”

“…Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired..”

That was the ruling last January in a federal court in California. The employer spent $315,000 in attorney fees, and prevailed on each of the ten claims in the lawsuit. The judge found that some of the claims were frivolous, and allocated $85,000 to the employer as reimbursement for the frivolous claims. The 9th Circuit (which also governs federal cases in Oregon) reversed on appeal because the employer didn’t prove that those fees were incurred solely in defense of the frivolous claims. This month, the U.S. Supreme Court made the same ruling in another civil rights case.

So what can employers do to minimize the risk of a devastating loss? Many employers are surprised to learn, after it’s too late to do anything about it, that general liability insurance does not cover discrimination claims. Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying.

Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired. Under these agreements, both sides agree in advance that any employment-related claims will be resolved in arbitration rather than in court. Litigating before an arbitrator tends to be faster and less expensive than court trials. Currently, an Oregon statute requires an employer to tell an applicant about the arbitration agreement 14 days before hiring. A bill is making its way through the Oregon Legislature that would reduce this time period to 72 hours. These agreements need to be carefully drafted to be enforceable.

Read more: Protect against discrimination lawsuits – Oregon Business http://www.oregonbusiness.com/contributed-blogs/5451-changing-rules-for-discrimination-lawsuits#ixzz1Q6ve56Ao

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by | June 21, 2011 · 5:50 am

Hospitality Industry Information Security: "Cyberinsurance" Has Evolved Into A "Must-Have" Insurance Policy For Hotel Management As Coverage Includes "Forensics"

“…some insureds get charged $1,000 an hour by a forensics firm. It’s paying the individual walking by your house burning down with a bucket of water…” 

“…used to really focus our underwriting attention on how well they could prevent the breach, but we’ve added another phase to it,” says Whetstone. “Not only can you prevent it, but if it happens, how quickly can you respond? Do you have a plan in place? Kind of like a disaster recovery plan or a business continuity plan. It’s the same with this incident response plan.”

“…cyberinsurance is a “must-have” for most firms today…”

Demand for cyberinsurance was rising even before the most recent highly-publicized parade of breaches at major corporations and organizations. After the news of the first major Sony hack but before the subsequent reports involving Sony, Citicorp, the International Monetary Fund and others, Insurance Journal spoke with an expert to gauge how the insurance market for this coverage is doing.

James Whetstone, senior vice president and U.S. technology and privacy manager for insurer Hiscox Specialty, is a former technology geek and broker turned underwriter.

Hiscox is one of the original underwriters of the coverage. Whetstone says there are almost 30 carriers now offering cyber liability coverage, some more seriously than others. He says these times of claims are when an insurer’s commitment to a market can be tested, citing what he calls the “naive” capacity that exists.

The coverage has evolved quickly– Whetstone compares the product’s acceptance to that of employment practices liability (EPL) coverage– to where cyberinsurance is a “must-have” for most firms today.

The underwriting has also changed. “We used to really focus our underwriting attention on how well they could prevent the breach, but we’ve added another phase to it,” says Whetstone. “Not only can you prevent it, but if it happens, how quickly can you respond? Do you have a plan in place? Kind of like a disaster recovery plan or a business continuity plan. It’s the same with this incident response plan.”

For more:  http://www.insurancejournal.com/news/national/2011/06/20/203166.htm

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by | June 19, 2011 · 7:16 am

Hospitality Industry Guest Safety Risks: Child Dies From Fall From 5th Floor Balcony Of A Florida Hotel; Balcony Had 4-Foot High Railing With Tightly-Spaced Bars

“…Family members said the girl was on the balcony with two adult relatives and was playing with an inflatable toy, Bernstein said. The toy became wedged in the railing and she slipped through and fell…”

“…detectives were trying to determine how the child could have fallen from the balcony, which is secured by a 4-foot-high railing with tightly spaced bars that extend to the floor…”

A toddler who fell from a fifth-floor balcony at an Oceanfront hotel Friday night died Saturday. The girl fell from a balcony at the Sandcastle Oceanfront Resort Hotel and landed on a patio of the Ammos Authentic Greek Cuisine restaurant, said Officer Adam Bernstein, a police spokesman.

The names of the toddler and other family members are being withheld to give the family time to inform relatives and friends, Bernstein said. The girl’s family lives in Staunton.

“Everything right now is pointing toward horrific accident,” Bernstein said. “At this point, there’s no indication of any foul play or neglect.”

For more:  http://hamptonroads.com/2011/06/child-dies-after-falling-oceanfront-balcony

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by | June 17, 2011 · 7:00 am

Hotel Industry Guest Safety: Texas Hotel Guests Injured When "Glass Panels" Fall From 24th Floor To Pool Deck Recalling Fatal "Window Accident" In Atlanta

“….two glass panels fell from balcony railings of two unoccupied condominium units on the 24th and 25th floors and landed in the pool area…”

The hotel’s general manager, Drew McQuade, told the newspaper that four people were treated for cuts and other injuries.

“It was not packed, but there were a fair amount of guests at the pool,” McQuade said. “We feel fortunate that there were not more people injured.”

The incident, which occurred June 10, recalls the May 28 tragedy at the W Hotel in Midtown in which two women fell through a glass window in their 10th floor hotel room. LaShawna Threatt, 30, was killed in that incident and Cierra Williams, 28, was critically injured. Witnesses said the two women were engaged in “horseplay” when they crashed through the window.

McQuade said engineering experts were investigating the incident.

For more:  http://www.ajc.com/news/glass-panels-fall-from-979520.html

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by | June 16, 2011 · 5:42 am

Hospitality Industry Theft Risks: Surveillance Video Shows Man Stealing Flat Screen TV From Washington Hotel Conference Room

“…Surveillance video from the waterfront Homewood Suites by Hilton hotel in Vancouver, Wash., shows a man last week carting out a 42-inch TV set – at 6 p.m. in the evening, according to The Colombian…”

“…The stolen TVs are valued at about $1,000 each. TVs stolen from guest rooms won’t work outside the hotel, but the TV from the conference room will, the story says…”

And the same man is believed to have stolen TV sets from a Staybridge Suites hotel and a Country Inn and Suites hotel near the Portland, Oregon, airport. It’s not clear whether others are involved in the scam.

This particular thief can be seen in the Homewood Suites hotel’s video using a hand truck to haul the TV wrapped in yellow hotel linens into a green Ford Escort wagon, the Colombian reports. He then returned the hand truck to the hotel and drove away.

The items came from the hotel’s conference room, where a meeting was held earlier that day, hotel general manager Kari Jonassen told the Colombian.

“This just makes me so mad that somebody has the gall to do this,” Jonassen told the paper.

For more:  http://travel.usatoday.com/hotels/post/2011/06/vancouver-washington-thief-steals-tv-sets-from-hotels-homewood-suites/174274/1?csp=34travel&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+hotelcheckincommunityfeed+%28Hotel+Check-in%3A+A+road+warrior%27s+guide+to+the+lodging+landscape+-+USATODAY.com%29&utm_content=Yahoo%21+Mail

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by | June 15, 2011 · 7:35 am

Hospitality Industry Employee Theft Risks: Delaware Hotel Sales Manager Arrested For "Creating Fictitious Hotel Rewards Program Accounts" And Purchasing Goods Later Resold For Cash

“…McNeill worked at the Renaissance Hotel, part of the Marriott chain, in Tinicum Township as a sales manager until Nov. 24, according to court papers. According to court documents, McNeill allegedly created six fictitious accounts in Marriott’s rewards program and logged points into the system. Purchases using those accounts were made between October and December of last year…”

A former Delaware County hotel employee has been arrested after she allegedly used more than $103,000 worth of fraudulent “hotel points” to buy items on Skymall, the online shopping catalog.

Tia L. McNeill, 34, formerly of King of Prussia, was taken into custody on Tuesday at a Sheraton Hotel in Towson, Md., where she now works. She has been charged with theft, criminal conspiracy, receiving stolen property, and related offenses, according to the District Attorney’s Office.

Also arrested was Christopher Jordan Jr., assistant director of basketball operations at Georgia State University in Atlanta. Jordan told police he would use accounts created by McNeill to order merchandise and then resell the items for cash. He would then send half the proceeds to McNeill.

In addition, McNeill allegedly illegally obtained $26,775 worth of Marriott Visa cards, which can be used only at the hotels

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by | June 14, 2011 · 6:46 am

Hospitality Industry Health Risks: Hotel Owners Can Now Obtain "Bed Bug" Insurance Policies That Combine Insurance For Pest Control And "Lost Revenue"

“…In the past, the cost of treating bedbugs was seen as an unplanned expense that had to be paid out of pocket by the landlord…”

“…Treatment of bedbug problems and replacement of any property was excluded from property insurance policies. In recent months, some hotels have obtained loss of attraction coverage that covers losses if rooms have to be taken out of service because of bed-bug infestations…”

Aon Risk Solutions, the risk management arm of giant insurance broker Aon Corp., has teamed with Global Excess Partners, a Manhattan-based commercial property insurance company, and Terminix, the nation’s largest pest-control company, to offer the first-ever bedbug-specific insurance policy for hotels, landlords and corporations.

The new insurance plan, announced Monday, will not only cover the cost of bedbug termination, but also covers lost revenue during the time the creatures are still running riot before succumbing to pest eradication techniques that range from a new non-toxic treatment that can clean a room in five days or less, to mattress encasements.

In an effort to quell a chance of an outbreak, many companies have been hiring exterminators like M&M to conduct monthly preventive visits, which cost anywhere from $100 to several thousand dollars. Mr. Wong said his company recently conducted a $25,000 job that came as a result of bedbug infestation.

For more:  http://www.crainsnewyork.com/article/20110613/REAL_ESTATE/110619964

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