Category Archives: Risk Management

by | March 27, 2012 · 2:14 am

Hospitality Industry Security Risks: California Hotel Evacuated Due To "Abandoned Suitcase" Bomb Threat

The suitcase was ruled harmless by bomb squad personnel after an X-ray determined that clothes and other personal items were inside. They would later destroy it with a high-powered water canon.

An abandoned suitcase that forced the evacuation of the Georgian Hotel and nearby buildings for nearly four hours on Monday was determined to be harmless, Santa Monica police said.  The suitcase was left in the Ocean Avenue hotel at approximately 9:30 a.m. by a man who said he was leaving it for a person staying at the establishment.

Hotel employees said that no name matching that person was on the hotel’s registry, prompting the man to flee. Alarmed by the incident, staff members called the police who ultimately called in the L.A. County Sheriff’s bomb squad to investigate the situation, SMPD spokesman Sgt. Richard Lewis said.

The evacuations came just as the Senior Center was preparing to serve free lunch, forcing nearly 55 seniors and five staff members to flee the building, employees said.

For more:  http://www.smdp.com/Articles-local-news-c-2012-03-26-73724.113116-Police-Suspicious-suitcase-had-no-explosives.html

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by | March 26, 2012 · 6:10 pm

Hospitality Industry Legal Risks: ADA "Pool Lift" Product And Installation Demonstration Video

[youtube=http://www.youtube.com/watch?v=d42mLPaPZBk]

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by | · 6:10 pm

Hospitality Industry Legal Risks: ADA "Pool Lift" Product And Installation Demonstration Video

[youtube=http://www.youtube.com/watch?v=d42mLPaPZBk]

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by | March 25, 2012 · 9:43 am

Hospitality Industry Property Risks: Minnesota Hotel Kitchen "Oil Fryer Fire" Causes $100,000 In Damage

“The oil in the fryer reached its ignition temperature; the employees tried to extinguish the fire with a fire extinguisher, which was ineffective against the burning oil.”  

A fire in a Pannekoeken restaurant fryer at the Days Inn Hotel in downtown Rochester on Saturday morning caused an estimated $100,000 in damage.  Firefighters were called to the hotel, located at 6 First Ave. N.W., at 6:17 a.m., said Rochester Deputy Fire Chief Steve Belau. Employees had been opening the kitchen for the day, and had started the fryer when the mishap happened.
“After a time the fryer was noted to be boiling excessively (and) efforts by employees to shut down the fryer were unsuccessful,” Belau said.

The built-in fire extinguisher system slowed the fire, but was overcome when the fire became too large, Belau said. When firefighters arrived, there was smoke in the main floor and fire in the exhaust hood area of the kitchen. Fire was coming out of the exhaust vent on the outside.
Firefighters used two large portable fire extinguishers. At first, each time they knocked it down, it came back, Belau said. Also, it was unusually hot and smoky inside the kitchen. “Oil fires are very difficult to extinguish due to the unusually high temperatures associated with them,” he said.

For more:  http://www.postbulletin.com/news/stories/display.php?id=1491004

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by | March 24, 2012 · 7:41 am

Hospitality Industry Legal Risks: Arizona Restaurant Chain Found Guilty Of "Pregnancy Discrimination" In Suit Brought By EEOC

“The EEOC would like to remind employers that pregnancy discrimination has been illegal for decades, and violations of the law will be met with rigorous enforcement by our agency.”

 The manager admitted in sworn testimony that he had made that statement, having been told by a company official that he could not hire pregnant women.

An Arizona federal jury returned a verdict against High Speed Enterprise, Inc., a corporation that owns five Phoenix-area Subway restaurants. The jury awarded damages to Belinda Murillo, a job applicant who claimed she was refused a position solely because she was pregnant. The suit was brought by the U.S. Equal Employment Opportunity Commission (EEOC).

According to the lawsuit, EEOC v. High Speed Enterprise, Inc. dba Subway, Murillo applied for a job at a central Phoenix Subway in May 2006. Later that month she met with the general manager who asked if she was pregnant. She said yes.

EEOC says that the manager told the applicant, “We can’t hire you because you’re pregnant.” She also reminded pregnant women that it is against the law for employers to fire them or treat them differently because they are expecting.

For more:  http://safety.blr.com/workplace-safety-news/safety-administration/Disabilities-ADA/Jury-Decides-Against-Restaurant-Owner-in-Discrimin/

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by | March 22, 2012 · 11:57 am

Hospitality Industry Theft Risks: International Jewelry Theft Ring Targeted "Jewelry Sales Representatives And Couriers" After Returning To Their Hotel Rooms

“…an international criminal organization that committed 17 robberies, primarily by attacking sales representatives and couriers after they had returned to their homes or hotel rooms. He said the group used prolonged, sophisticated surveillance methods to identify vulnerable salesmen, who were targeted throughout Virginia as well as in New York, New Jersey, North Carolina, Maryland, California and Tennessee over the past two years. Sometimes the robbed salesmen would be followed for hundreds of miles and across state lines.  

Seven people have been charged with operating a jewelry-theft ring based in Richmond, Va. that authorities say stole more than $4.6 million in merchandise from traveling salesmen in Virginia and several other states.

“This is a group that allegedly did their homework,” MacBride said in a conference call with reporters.

Court documents say the group of Colombians has ties to South American theft groups, which federal authorities say are transnational criminal groups that work in teams to steal jewelry, gems and precious metals from those who carry hundreds of thousands of dollars in merchandise at one time.

Prosecutors say that after a successful robbery, members of the ring would travel to New York to sell the merchandise to “fences” who would either resell it or melt it down for later use. MacBride said the group didn’t target any one particular type of jewelry, saying it included gold and gems, among other things.

Read more here: http://www.sacbee.com/2012/03/21/4356163/7-arrested-in-multi-state-jewelry.html#storylink=cpy

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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

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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

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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

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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

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