Category Archives: Risk Management

P3 Hospitality Industry Risk Report: “ADA Pool Lift Update” Presented By Loss Control Specialist Marco Johnson Of Petra Risk Solutions (Video)

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The January 31, 2013 ADA pool lift compliance deadline is fast approaching. Petra Risk Solutions’ Loss Control Specialist,  Marco Johnson, offers a P3 Hospitality Risk Update – ‘ADA Pool Lift Update’ – to help clear up some of the confusion about the requirements of this new ADA law.

P3 (Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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

Hospitality Industry Property Risks: Pennsylvania Hotel “Fire Alarm System” Fails During Basement Fire; Over 70 Guests Evacuated After Electrical Panel Circuit Found “Dead”

“…the hotel had a small fire in its basement over the weekend, and the fire alarms did not go off…(it was) found that the hotel’s electrical panel that controls the fire alarms was dead and the alarms didn’t work…the fire alarms for hotelshotel’s general manager said they had to evacuate more than 70 guests Tuesday, and they’ve been working since then to replace the fire alarm system..”

A hotel in a Scranton shut down Tuesday night because of a problem with its fire alarm system. It turns out, that hotel may have been without fire protection for weeks, maybe even months.

Scranton firefighters received a tip call from a former employee of the Clarion Hotel in Scranton. That call unraveled what could have been a big problem for the hotel and city officials.

The city’s director of inspections and permits, Mark Seitzinger went with firefighters to check out the tip calls claim.

“It’s dangerous, as of the other day they had 75 occupants or patrons of the building, that’s 75 people not including employees that are at risk because there’s no fire system,” said Seitzinger.

On the city’s advice, hotel managers made the call to evacuate all of those 75 guests and sent them to nearby hotels. Among the displaced were realtors who were supposed to have a certification class at the Clarion, but they had to change their plans and move to another venue in Clarks Summit.

For more:  http://wnep.com/2013/01/09/hotel-replaces-faulty-fire-alarms-following-small-fire/

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Filed under Fire, Guest Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Hotel “Mobile Applications” Must “Post Privacy Policy” Allowing Guests To “Access And/Or Request Changes To Personal Information”

“…In the case of an online service, “conspicuously posting” a privacy policy requires that the policy be “reasonably accessible…for consumers of the online service…the consumer (must be able) to access or request mobile technologychanges to personal information, (and) the operator of the site will notify consumers of changes, and the effective date of the policy..”

Hotel companies are actively entering the mobile application space as a means of gaining market share and solidifying guest relations. In addition to online travel agents like HotelsbyMe.com, a number of brands including Omni, Choice and Starwood have developed mobile applications. However, as mobile applications gain popularity, hotel companies should consider how privacy and security laws will impact how they can use those applications.

For companies with operations in California, that issue was highlighted on December 6, 2012, when the California Attorney General filed a lawsuit against Delta Airlines for failing to include a privacy policy with a smartphone application. The lawsuit, the first of its kind, alleges that Delta violated California law requiring online services to “conspicuously post its privacy policy” by failing to include such a policy with its “Fly Delta” mobile application.

The California online privacy law

In 2004, California enacted the California Online Privacy Protection Act (“CalOPPA”). This law requires operators of websites and online services to “conspicuously post” privacy policies about the personal information that is collected, how the consumer can access or request changes to personal information, how the operator of the site will notify consumers of changes, and the effective date of the policy.

In the case of an online service, “conspicuously posting” a privacy policy requires that the policy be “reasonably accessible…for consumers of the online service.”

CalOPPA does not define an “online service” or mention “mobile” or “smartphone” applications, likely due to the fact that in 2004, smartphones and mobile applications were just being developed. However, the California Attorney General considers any service available over the internet or that connects to the internet, including mobile apps, to be an “online service.”
For more:  http://www.hotelnewsresource.com/article68597Hotel_Lawyer_on_How_New_Privacy_Law_Enforcement_May_Affect_Your_Mobile_Apps_Used_in_Marketing_.html

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Filed under Guest Issues, Liability, Management And Ownership, Privacy, Risk Management

Hospitality Industry Property Risks: Louisiana Hotel Laundry Room Fire Causes “Heavy Water Damage” And Forces Evacuation Of Entire Building

“…The fire was found to have originated in a laundry room on the fourth floor of the hotel. The third and fourth floors sustained heavy water damage, as the sprinkler system helped to squelch the blaze…(additional Hotel fire and smoke damagefirefighters were needed) to assist with getting materials that were burned and water-damaged out of the building…”

A Saturday night fire at the CBD’s Hotel Intercontinental (444 St. Charles Ave.) damaged the middle floors of the 14-story structure, and moved guests to a nearby ballroom, according to the New Orleans Fire Department.

Firefighters went door-to-door at the 410 rooms to ensure that all guests evacuated the building. Initially, the fire was at two alarms, but the third and fourth alarms were struck to provide more manpower. A total of 31 trucks and 98 NOFD personnel were at the scene.

The fire was largely contained to the area where the fire originated, but smoke damage was reported on the floors above the fourth.

The fire was under control by 7:30 p.m. The only reports of injury in the blaze were from a guest who told authorities they were having trouble breathing. The guest refused medical assistance. The displaced guests were relocated to the second-floor ballroom in the Hilton New Orleans, which is located across St. Charles Ave.

For more:  http://noladefender.com/content/four-ala76rm-fire-dam98ages-st-charles-ave-hotel

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Filed under Fire, Guest Issues, Insurance, Management And Ownership, Risk Management

Hospitality Industry Theft Risks: Chicago Restaurant Guests Warned About Thieves Targeting Cell Phones

“…The thieves put a flyer on top of the customers’ cell phones. The men pick up the flyer and the cell phone as Cell Phone Theft (2)they leave. They know they can turn these cell phones over to a pawn shop and get a couple hundred bucks.”

Chicago police are warning people about a cell phone theft ring that is hitting downtown restaurants. Customers at restaurants on Michigan, Fairbanks, Wabash and Ontario have been robbed in the last four days.

Police say a group of young men approach diners to say that they are raising money for a basketball team. “I was eating by myself tonight and scrolling on the phone and didn’t even think that someone might come and swipe it,” diner Todd Ganz said.

The team of thieves is operating in three different areas, police say: in the 400-block of East Ontario, the 600-block of North Fairbanks, and in the Loop along Michigan Avenue and the 100-block of North Wabash.

For more:  http://abclocal.go.com/wls/story?section=news/local&id=8941275

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Filed under Crime, Guest Issues, Risk Management, Theft

Hospitality Industry Theft Risks: California Hotel Guest Arrested For Using Stolen Credit Card To Pay For Room; Used Laptop On Open Wi-Fi Network To Steal Account Information

“…(suspect) allegedly rented a room at the Montage by using a stolen credit card. The fraud went undiscovered for two days while Larson accrued a $2,134 tab, but he disappeared from the resort prior to the arrival of cyber securitypolice…he used a laptop to collect credit card information from people making purchases or checking their accounts…”

An admitted identity thief, apparently expert at stealing credit card account information over open wi-fi networks, was arrested last week after skipping out on a $2,134 bill at Montage Laguna Beach, police said. Police tracked Harold Eric Larson, 37, to his hometown of Orange and arrested him on Thursday, Dec. 27, on several theft related charges, Capt. Jason Kravetz said in a statement. He is accused of using stolen credit card numbers to rent hotel rooms to for himself and friends in Laguna Beach, Newport Beach and Costa Mesa, Kravetz said.

Coincidentally, on Dec. 26 police received a complaint about guests using drugs in a room at Laguna Cliffs Inn and arrested Edward Richard York, 40, of Tustin, allegedly for possessing methamphetamine and marijuana, Sgt. Louise Callus said. Officers learned the room was rented with a stolen credit card number provided by Larson, said Kravetz.

Larson was previously arrested by Laguna police last April on 23 felony counts of fraud and theft after he was caught using stolen credit card information to rent hotel rooms.  He pled guilty to the charges and was sentenced to three years probation, one year in jail and restitution.

For more:  http://www.lagunabeachindependent.com/2013/01/02/identity-thief-held-hotel-scam/

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

Hospitality Industry Legal Risks: California Hotel Faces Class-Action Lawsuit Over “Fixed Percentage Withholdings” From Room Service Tips; Violation Of California Labor Law

“…(plaintiff) claims the hotel pools the tips of its room service delivery staff and withholds a fixed percentage of them…the withholdings, which have been standard policy since at least 2003, violate California labor Hospitality Industry Class Action Lawsuitslaw…he seeks compensatory and exemplary damages for unfair competition, conversion and money had and received…”

Hyatt Hotels and the Manchester Financial Group steal workers’ tips to cover “glass breakage,” whether employees have broken any glasses or not, a class action claims in Superior Court. Former room service delivery worker Leonardo Acosta sued Host Hotels and Resorts, Manchester Financial Group and Hyatt Hotels Corp.

“Hyatt and the other defendants maintain that the monies are withheld pursuant to Hyatt’s policy of reimbursing themselves for purported ‘glass breakage.’ The same percentage of gratuities was withheld from all room service delivery workers in plaintiffs’ tip pool, without regard to the amount of breakage, if any, during any pay period.

The same percentage of gratuities was withheld from all room service delivery workers in plaintiffs’ tip pool, without regard to whether any purported breakage was caused by any dishonest or willful act, or by the gross negligence of any employee … [and] without regard to the individual, if any, responsible for the alleged breakage,” Acosta claims.

For more:  http://www.courthousenews.com/2013/01/02/53536.htm

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

Hospitality Industry Legal Risks: Workplace Discrimination Lawsuits Increase As Companies Employ "Ethnically Diverse Labor Force"; Hotel Worker Mocked For His "Accent" Awarded $500,000 Settlement

Earlier this year, an Iraqi hotel worker in Phoenix won a $500,000 settlement from the Four Points Sheraton. EEOCHe claimed his co-workers mocked his accent and called him derogatory names. According to the EEOC, the worker’s managers didn’t take his complaints seriously, which made his workplace situation intolerable.

Workplace discrimination complaints based on national origin, including those involving language ability, increased by 76 percent from 1997 to 2011, according to the EEOC. The agency says the trend reflects a more ethnically diverse labor force.

Civil rights advocates say workplaces have become more hostile toward workers who don’t speak perfect English.

“There’s definitely a climate of fear that’s bad for everyone,” John Mejia, legal director for the American Civil Liberties Union (ACLU), told Insurance Journal.

Some workers have won large settlements in accent-related lawsuits.

For more:  http://www.insidecounsel.com/2012/12/26/accent-related-discrimination-suits-on-the-rise-sa

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

Hospitality Industry Legal Risks: Connecticut Hotel Guilty In "Wrongful Death" Lawsuit Filed By Family Of Man Killed By Hotel Van; Jury Awards $2.3 Million For Driver's Negligence

The jurors ruled both Coleman and Campos were at fault in the accident. But the jurors said Coleman, and thus LaQuinta as well, were responsible for 58 percent of the negligence and Campos was responsible for 42 Hospitality Industry Lawsuitpercent…the (victim) was found to share some of the negligence probably because “no one can say for sure” if he obeyed a stop sign…the (driver) did not have a stop sign…”

“…The lawsuit also alleged (driver) was using a cellphone in violation of state law…the jurors awarded $1,709,840 in damages to the victim’s estate and $580,000 in damages to the widow…”

The family of Jose Mauricio Campos Thursday won a jury verdict of nearly $2.3 million in a wrongful death lawsuit against a hotel corporation and its employee, the driver of a van that struck Campos. Campos, 52, was riding a bicycle at about 6:45 p.m. Sept. 15, 2008 when he was hit by the van, operated by Robert Edward Coleman, near the intersection of Westfield and Gilbert streets in West Haven.

Coleman was a defendant in the civil suit, along with his employer, LaQuinta Inn and Suites, owned by LQ Management. He and the corporation were found to be equally liable.

Campos, who was not wearing a helmet, was thrown to the pavement by the impact and suffered a serious head injury. He died three days later at Yale-New Haven Hospital after emergency surgery. The plaintiff was his wife, Gregoria Campos of West Haven. The Camposes had three sons, now adults.

For more:  http://nhregister.com/articles/2012/12/22/news/new_haven/doc50d67c73417dd288959464.txt

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

Hospitality Industry Safety Risks: Gas Fireplace Manufacturers To Provide "Protective Screens" To Prevent Severe Burns From "Scorching Glass Fronts"

“…Under the voluntary standard, the glass is allowed to reach temperatures as high as 500 degrees or 1,328 degrees Fahrenheit, depending on the type of glass used. Up to now, most manufacturers have not provided Hotel Glass Fireplacesscreens or prominent safety warnings out of fear of marring the aesthetic appeal of fireplaces or scaring off customers…”

Some have argued that the risks of a fireplace are so obvious that keeping kids safe is simply a matter of good parenting and common sense. However, some child burn victims were hotel guests whose parents had no experience with gas fireplaces.

Fred Stephens’ 11-month-old daughter Lila had to have skin grafts on both palms after suffering third-degree burns from fireplace glass at a resort in the Wisconsin Dells in 2010.

To stave off regulation and lawsuits over severe burns to toddlers, manufacturers will provide protective screens as standard equipment with new gas fireplaces. The industry has revised its voluntary guidelines to call for the addition of mesh screens attached to new fireplaces to prevent contact with the scorching glass fronts.

Fireplace makers will have a long lead time — until Jan. 1, 2015 — to provide screens with new units, though companies are already retooling to do it sooner, said Tom Stroud, a senior manager with the Hearth, Patio and Barbecue Association.

As reported by FairWarning, more than 2,000 children age 5 and under were injured by contact with the unprotected glass in a recent 10-year period, according to a federal database. The injuries triggered at least a dozen lawsuits and scrutiny by the Consumer Product Safety Commission.

For more:  http://www.oregonlive.com/health/index.ssf/2012/12/new_gas_fireplaces_to_get_safe.html

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Filed under Claims, Guest Issues, Injuries, Insurance, Liability, Maintenance, Risk Management