Category Archives: Management And Ownership

by | March 21, 2012 · 11:52 am

Hospitality Industry Theft Risks: Hotel Liability For Theft Of Guest's Property Is Limited By Statute In All States; Providing Digital Room Safes Can Limit Total Losses

Under common law, an innkeeper or hotelier was liable for loss or damage to guest’s property for the full value, unless the loss was caused by an act of nature (hurricanes, tornadoes, etc.), civil unrest, or the fault of the guest…each state has modified the common law by enacting statutes that limit the hotel’s liability… ordinarily limited to a specific figure, anywhere from $250 to $5,000.

Hotels typically post conspicuous notices indicating that valuables worth more than a certain amount (e.g., $250 or $500) must be deposited in the hotel safe in order to be covered for any loss. (Room safes are generally recommended only if they contain digital keypads, and the guest assumes all responsibility for getting into the safe and keeping the combination confidential.)

Two states have been randomly selected to provide examples of these statutes:

  • The Rhode Island statute states that if the hotel provides a safe for depositing money, jewelry, watches, and the like, and notifies guests by posting a conspicuous notice to that effect, and guests fail to deposit their valuables in the safe, the hotel is not liable for any loss to the valuables. It goes on to add that the hotel is not obligated to accept property for safekeeping that exceeds $500 in value. If a guest deposits property with a value exceeding $500 in the safe, the hotel is not responsible for loss to this property for more than $500, unless there is a special written agreement with the hotel for a greater amount.
  • The New Mexico statute states that the hotel is liable to its guests for loss of their property that is caused by the theft or negligence of the hotel or its staff, up to a limit of $1,000. However, if the hotel provides a suitable safe for safekeeping of money, jewelry, or other valuables, and notifies guests by posting a printed notice in hotel rooms, and guests fail to deposit their valuables in the safe, the hotel will not be liable.

For more:  http://www.adjustersinternational.com/insights_1002EA.cfm

Comments Off on Hospitality Industry Theft Risks: Hotel Liability For Theft Of Guest's Property Is Limited By Statute In All States; Providing Digital Room Safes Can Limit Total Losses

Filed under Crime, Guest Issues, Insurance, Liability, Maintenance, Management And Ownership, Risk Management, Theft

Tagged as , , , , ,

by | March 20, 2012 · 11:47 am

Hospitality Industry Information Risks: "Specialized Cyber-Risk Insurance" Is Important In Providing "Security Liability" And "Privacy Liability" Coverage

A specialized cyber-risk insurance policy is necessary. Coverage would not usually be triggered under a commercial general liability policy–many of which also have exclusions. Importantly, property-damage policies typically do not acknowledge “data” as property.

“Cyber liability” is essentially comprised of two defined risks:

  • Security Liability: the unauthorized access and/or use of a network. Employees or others with access to the network can misappropriate identity information, business secrets, transmit malicious codes, and undertake a denial of service attack against your network or other networks.
  • Privacy Liability: the breach of personal data protection laws that allow individuals to control the collection, access, transmission, use, and accuracy of their personal information.

The available policy coverage options start with General Internet Crime Liability. This addresses the first and third party risks associated with e-business, the Internet, networks and informational assets.

However, it is critical to review your business activities to ensure appropriate coverage. To this needs to be added appropriate Property, Directors and Officers, Business Interruption and Fidelity wordings. For those businesses offering software and services susceptible to outage or malfunction associated with a cyber-attack, Electronic Errors and Omissions coverage should also be obtained.

For more:  http://www.pcworld.com/businesscenter/article/252126/can_insurance_cover_cybercrime_damages_at_your_business.html

Comments Off on Hospitality Industry Information Risks: "Specialized Cyber-Risk Insurance" Is Important In Providing "Security Liability" And "Privacy Liability" Coverage

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

Tagged as , , , , ,

by | March 19, 2012 · 8:26 am

Hospitality Industry Property Risks: Texas Hotel Evacuated After Guests Exposed To Carbon Monoxide; Boiler Room Thought To Be Source

“…several people from the hotel went to a hospital on their own and nobody was seriously hurt. He says the individuals apparently had similar symptoms, such as nausea and headaches, leading hospital personnel to contact the fire department…”

Part of a Dallas-area hotel has been evacuated after some people got sick from possible carbon monoxide exposure.

Wilson says carbon monoxide possibly was detected in a hotel boiler room. A clerk who answered the phone said the front desk area had been declared safe. Warning alarms could be heard in the background.

Read more here: http://www.star-telegram.com/2012/03/19/3819780/part-of-irving-hotel-evacuated.html#storylink=cpy

Comments Off on Hospitality Industry Property Risks: Texas Hotel Evacuated After Guests Exposed To Carbon Monoxide; Boiler Room Thought To Be Source

Filed under Guest Issues, Health, Injuries, Liability, Maintenance, Management And Ownership, Risk Management

Tagged as , , , ,

by | March 18, 2012 · 7:56 am

Hospitality Industry Employment Risks: Hotel Management Must Use Consistent Hiring And Firing Procedures To Prevent "Age Discriminiation Lawsuits"

  • Initial screening: Make sure those responsible for selecting interview candidates don’t have access to information about applicants’ race, age, sex or other protected characteristics. That alone will prevent many failure-to-hire claims. HR should take the lead and prepare applicant summaries for hiring managers to screen that contain no tell-tale information about protected characteristics. That may mean even excising names, using a candidate number instead.
  • Who hires and fires: The same individual responsible for the final decision to hire an applicant should also make the decision to fire that individual if necessary. This helps dispel the notion that a protected characteristic like race or age had anything to do with the decision. After all, why would someone hire an applicant who belongs to a protected class then turn around and fire the same person because of her race, sex, age, etc.?
  • Training: Track training to make sure each employee has the opportunity to improve job performance. Note any training offers and the employee’s response.
  • Informal audit: Review your labor pool regularly. Look for patterns that may indicate hiring bias. For example, are all employees in a particular job under age 40? If so, find out why.

For more:  http://www.businessmanagementdaily.com/29524/use-consistent-hiring-firing-processes-to-knock-down-age-discrimination-claims

Comments Off on Hospitality Industry Employment Risks: Hotel Management Must Use Consistent Hiring And Firing Procedures To Prevent "Age Discriminiation Lawsuits"

Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Training

Tagged as , ,

by | March 17, 2012 · 8:19 am

Hospitality Industry Legal Risks: Latest Americans With Disabilities Act (ADA) Revisions Reflect "Removal Of Barriers"; Restroom Floor Space And Counter Height Are Areas Of Concern

  • Toilet clear floor space: The 1991 standards required 48 inches wide of clear floor space around a toilet. The new 2010 standards require 60 inches of clear floor space around the toilet. Things such as grab bars, toilet paper dispensers and seat protector dispensers are allowed to hang over into that space, but more obtrusive items such as urinals or cabinets are not.
  • Lavatory comparable counter space: Accessible rooms are required to have counter space comparable to that of nonaccessible rooms. “Various people have different needs for countertop space,” Anderson said. “My wife has the need for a lot of countertop space, and having that small little room around the accessible sink really doesn’t meet her needs. So it’s not comparable.”
  • Sales and service counters: The 1991 standards allowed for auxiliary sales and service counters built on to existing desks. The new 2010 standards require accessible counters of full, standard depth—not just ledges or other auxiliary spaces.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7719/New-ADA-changes-could-prove-costly

2 Comments

Filed under Guest Issues, Legislation, Liability, Maintenance, Management And Ownership

Tagged as , , , , ,

by | March 16, 2012 · 12:34 pm

Hospitality Industry Legal Risks: Hotels Granted "11th Hour" Reprieve In Americans With Disabilities Act (ADA) "Pool Lift Compliance" Mandate

 “…The federal government sought to make public pools, including hotel pools, accessible for people with disabilities in 2010. There are about 51,000 hotels in the USA, and the majority have some kind of a pool…”

The U.S. Justice Department will grant the hotel industry at least a 60-day extension for complying with a new rule aimed at making existing hotel pools compliant with the 22-year-old Americans With Disabilities Act. It’s a decision that the hotel industry lobbied hard for at the 11th hour, as a number of hotel owners and managers suggested they might close their pools or fill in their whirlpools due to the uncertainty the new rules created.

For more:  http://travel.usatoday.com/hotels/post/2012/03/hotel-pool-lifts-deadlines-her-confusion-persists/648998/1

Comments Off on Hospitality Industry Legal Risks: Hotels Granted "11th Hour" Reprieve In Americans With Disabilities Act (ADA) "Pool Lift Compliance" Mandate

Filed under Guest Issues, Labor Issues, Legislation, Liability, Management And Ownership, Pool And Spa, Risk Management

Tagged as , , , ,

by | · 8:14 am

Hospitality Industry Legal Risks: Virginia Hotel Sued For $12 Million By Family Of Woman Killed By Valet Driver

“…A multi-million dollar lawsuit is filed in Richmond Civil Court, by the husband of the woman killed outside of a downtown Richmond hotel, allegedly by a valet driver for that hotel…Court documents say that (the valet) pulled out of the driveway of the hotel and instead of turning onto the street, he turned left down the sidewalk and ran right into (the woman)…”

“…Among those named in the suit is the Hilton Garden Inn. And the valet company employed at the hotel…”

In (the civil lawsuit) — Stone’s husband, John, lays out the pain, sorrow and anguish he’s been dealing. Stone died just a few days before their wedding anniversary. The suit says Josephine Stone’s death was a direct result of the negligence, recklessness and a conscious disregard for her rights and safety. The total amount wanted: more than 12 million dollars.

The Hilton released this statement, saying, “We deeply regret the tragic loss of any life especially this promising young person. We continue to work with the third party operator, parking management services, on this matter and will continue to cooperate with local authorities as we have done since this tragic accident. We continue to keep the stone family and friends in our thoughts and prayers.”

Gray is facing a involuntary manslaughter charge as well. That is set to go to a trial on May 25th.

For more:  http://www.nbc12.com/story/17170161/civil-lawsuit-filed-in-woman-killed-outside-richmond-hotel

Comments Off on Hospitality Industry Legal Risks: Virginia Hotel Sued For $12 Million By Family Of Woman Killed By Valet Driver

Filed under Guest Issues, Injuries, Insurance, Labor Issues, Liability, Management And Ownership

Tagged as , , ,

by | March 15, 2012 · 8:23 am

Hospitality Industry Legal Risks: California Hotel Owners Compliance With Americans With Disabilities Act (ADA) "Pool Lift Regulations" Is Effective March 15; Vulnerable To "Unruh Civil Rights Act" Violation Lawsuits

“…California-based businesses should be particularly worried.  The Unruh Civil Rights Act, itself a wellspring for abusive litigation, incorporates the ADA by reference, making any violation of the ADA also a violation of Unruh…Unruh has more teeth than the ADA—$4,000 per violation, regardless of intent, plus attorney’s fees…”

 The Department of Justice granted the industry’s call for a clarification: But it was not the answer they wanted. All 300,000 public pools in the United States must install a permanent fixed lift. The deadline for compliance is tomorrow, March 15. Call it “Poolmageddon.”

There is no way all 300,000 pools can install permanent lifts by Thursday. There simply are not enough lifts in existence or enough people who know how to install them, according to industry spokesmen. Plus, each lift costs between $3,000 and $10,000 and installation can add $5,000 to $10,000 to the total.

The Administration has assured the industry that it does not plan to enforce the new guidelines right away.  But the ADA contains a private enforcement mechanism, empowering private attorneys to bring suit immediately, collecting attorney’s fees from violators.  As the article mentions, trial lawyers contributed over $45 million to Obama’s campaign.

For more:  http://ordinary-gentlemen.com/timkowal/2012/03/15/new-ada-guidelines-expose-pool-operators-to-private-lawsuits/

Comments Off on Hospitality Industry Legal Risks: California Hotel Owners Compliance With Americans With Disabilities Act (ADA) "Pool Lift Regulations" Is Effective March 15; Vulnerable To "Unruh Civil Rights Act" Violation Lawsuits

Filed under Labor Issues, Legislation, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management, Training

Tagged as , , , , ,

by | March 14, 2012 · 2:41 am

Hospitality Industry Theft Risks: California Hotel Security Guard Charged With "Grand Theft And Burglary"; Accessed Online System To Steal Guest's Valuables

“…In his part-time security job for the hotel, Quinton was entrusted with access to an online lost and found system, which he is suspected of looting…”

“…In addition….(he) covered surveillance cameras in the hotel security office and stole $680 in cash from an office safe…”

A Los Angeles Police Department officer moonlighting as a security guard at Laguna Beach’s Surf & Sand Resort is to be charged with grand theft and burglary, the district attorney’s office said on Tuesday. Laguna Beach police, who had set up surveillance cameras within the hotel after its staff reported irregularities that began in October, arrested Quinton on Jan. 24, Lt. Jason Kravetz said.

When police arrested Quinton on Jan. 24, he had disappeared for over an hour during his shift, including from surveillance cameras police were monitoring in a spare hotel room, stealing $290 in bedding from a locked hotel storage room, and storing the items in his car. Detectives who went to Quinton’s home after the arrest seized more property, Kravetz said.

Hotel staff aided the investigation with monitoring cameras while detectives observed the employee from a hotel room. “We wanted to make sure we had a really solid case,” said Kravetz, who pointed out that most Orange County law enforcement agencies prohibit sworn officers from moonlighting in security posts or jobs involving alcohol. In Los Angeles County, officers have a long history of moonlighting as security for celebrities, he pointed out.

In October, Quinton allegedly stole cash that had been recovered from a room and secured in the hotel’s lost and found by accessing the online system and changing the cash entry into a “gold watch.” He is suspected of changing the room number where the $2,000 in cash had been found and falsely logging that the watch was returned to its owner, stealing $960 from the safe, Kim’s statement said.

For more:  http://www.lagunabeachindependent.com/2012/03/13/moonlighting-cop-charged-hotel/

Comments Off on Hospitality Industry Theft Risks: California Hotel Security Guard Charged With "Grand Theft And Burglary"; Accessed Online System To Steal Guest's Valuables

Filed under Crime, Guest Issues, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Theft

Tagged as , , ,

by | March 13, 2012 · 9:18 am

Hospitality Industry Legal Risks: Hotel Management Must Comply With Americans With Disabilities Act (ADA) Revisions Concerning Recreational Areas; Exercise Rooms, Saunas And Benches Are Areas Of Concern

New revisions to the Americans with Disabilities Act are bringing hotel recreational areas under the watchful eye of the U.S. Department of Justice for the first time. And unlike other guidelines covered by the 1991 ADA Standards for Accessible Design, recreation areas do not qualify for safe harbor.

Exercise rooms:

  •  The key issue in exercise rooms is clearance space, the moderators said.
  • “At least one of each type of equipment is required to be on an accessible route and have clear floor space adjacent to the equipment so that somebody is able to park their mobility device there and then get out of that device and transfer or may be able to walk and get on to this piece of equipment,” Salmen said.
  • More than one piece of equipment can share the same clear floor space, he said.
  • “This is going to have implications on how your fitness rooms are laid out, and (in) a lot of small fitness rooms you will have to do rearranging or potentially may even have to lose a piece of equipment in order to try to provide these clear floor areas,” Anderson added.

Saunas and steam rooms:

  •  Hotels must have accessible routes into saunas and steam rooms. Further, they must have enough space within the rooms so guests with disabilities can turn around and get out, Salmen said.
  • “So doors have to be compliant as per the door criteria with 32 inches of minimum clear opening width. The pressure on that door can’t be more than five pounds. The thresholds for those doors have to be compliant,” he said.

Benches:

  •  Benches in hotel locker rooms and steam rooms can be as little as 42 inches with a depth of 20 inches to 24 inches, Salmen said.
  • “But in these new rules we are now required to have a maneuvering space in front of the bench and at one end of the bench so that it is (easier to slide over) from the wheelchair seat onto the seat of the bench,” he said.
  • Benches must be attached to a wall or provide a back rest so users will have something to lean against, Salmen added.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7732/ADA-standards-call-recreation-areas-into-focus

Comments Off on Hospitality Industry Legal Risks: Hotel Management Must Comply With Americans With Disabilities Act (ADA) Revisions Concerning Recreational Areas; Exercise Rooms, Saunas And Benches Are Areas Of Concern

Filed under Guest Issues, Insurance, Legislation, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management, Training

Tagged as , , , ,