Category Archives: Risk Management

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 20, 2011 · 7:44 am

Hospitality Industry Information Security Risks: New "Informative Fraud Databases" Explain And Expose The Latest Scams Designed To Steal Credit Card Data

“…what about when the hotel desk calls your room because of a problem processing your credit card? Would you know better than to give the “receptionist” your number?…”

That’s just one of the 350-plus scams exposed and explained in Scam Detector for iOS, an informative fraud database that can help you avoid getting ripped off.

The app doesn’t “detect” scams so much as educate you about them. The data is divided into five categories: Auto, Face to Face, Internet, Telephone, and Travel. Within Internet you’ll find five sub-categories: Social Networking, Financials, Employment Online, Houses & Properties, and Online Auctions & Tech.

In other words, it covers all the bases–and reveals a lot of scams I guarantee you’ve never heard of. For example, you know the guy standing in line behind you at the register, the one who looks like he’s texting on his phone? He might actually be snapping photos, trying to get a readable shot of your credit card as it passes back and forth between you and the cashier.

Read more: http://reviews.cnet.com/8301-19512_7-20071984-233/scam-detector-app-saves-you-from-getting-ripped-off/#ixzz1Ppb87YjR

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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 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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by | June 12, 2011 · 6:24 am

Hospitality Industry Guest Security: Texas Hotel Management Faces Questions On How A Man Stole A "Master Key" And Entered A Guest Room Before Assaulting Guests

“What shocks me most … This guy had a master key and just walked right into the kids’ room high and started swinging at them,” Hernandez said. “Thankfully the kids were screaming and (coach Joseph) Rosendo was nearby to help.”

Attempts to contact Clarion management for a comment on how they lost a master key and the attack itself were unsuccessful Saturday. Hernandez said at least it wasn’t the hotel room with his female athletes.

The coach of the Lubbock Warriors spoke out, voicing many concerns about the hotel’s security and the legal system after his squad was attacked early Friday morning, hours before a boxing competition.

Nicodemus Alvarado, 18, allegedly attacked members of the team while he was drunk and high on cocaine after using a stolen master key to gain entry into their hotel room at the Clarion on the 4300 block of West Wall Street about 12:20 a.m. Friday, police said.

Besides issues with the hotel’s security, Hernandez also raised questions about the legal system in general after he learned of Alvarado’s past.

Alvarado was arrested less than three months ago during an unrelated incident on the exact same charges: First-degree felony for burglary of habitat with intent to commit another felony and for possession of a controlled substance.

He was arrested for the first set of felonies following a March attack on a woman. He allegedly pushed his way into her residence and began assaulting her after he disconnected her emergency call to police, according to the March arrest affidavits.

Despite his $56,000 bond, Alvarado eventually was released from the county lockup. According to clerk of court records, Alvarado was only adjudicated for the misdemeanor charge of interfering with an emergency call during the March 6 incident. It was not known, as of press time Saturday evening, under what circumstances the felony charges were dropped or dismissed

Read more: Coach criticizes hotel, legal system after attack – Mywesttexas.com: Top Stories http://www.mywesttexas.com/top_stories/article_90772213-c4f4-5716-994b-a4279a012afb.html#ixzz1P4TArI00

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by | June 10, 2011 · 9:14 am

Hospitality Industry Health Risks: Arkansas Hotel Evacuated After High Levels Of "Carbon Monoxide" Sickens Family Of Four; Traced To A Faulty Swimming Pool Heater

“…Fire Department officials say a North Little Rock hotel was evacuated after a family of four was hospitalized with carbon monoxide poisoning…traced to a faulty swimming pool heater…”

The Arkansas Democrat-Gazette reported Friday that Fire Department Capt. J.R. Pflasterer said the carbon monoxide was found at unsafe levels throughout the hotel Thursday He said it was traced to a faulty swimming pool heater.  Pflasterer said 64 people were forced to leave the Comfort Inn and Suites after the family went to a hospital about 8 a.m. He said about 10 of those evacuated reported headaches or dizziness.

Pflasterer said carbon monoxide levels returned to normal Thursday afternoon. The hotel’s telephone number was continually busy Friday morning, so it could not be learned when it would reopen.

For more:  http://www.therepublic.com/view/story/852f6fb07d9149cb9238e0adf171f81b/AR–Carbon-Monoxide-Ark-Hotel/

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by | June 9, 2011 · 6:13 am

Hospitality Industry Risk: "Petra Risk Solutions" Releases "P3 Hospitality Risk Report" Video On "Innkeeper's Limit Of Liability"

[vimeo http://www.vimeo.com/52513786 w=630&h=354]

Petra Risk Solutions’ Director of Risk Management, Todd Seiders, offers a P3 Hospitality Risk Report – ‘Innkeeper’s Limit of Liability’. 

  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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by | June 7, 2011 · 7:56 am

Hospitality Industry Computer Risks: Cybercrime Risks Remain Perilous As "Malicious Software Or Malware" Increases To 6 Million Programs In First Three Months Of 2011

The amount of new malicious software, or “malware,” unleashed on the internet during the first three months of this year hit six million programs, according to a report last week by McAfee, the computer antivirus maker. “It’s been a busy start to 2011 for cybercriminals,” Vincent Weafer, senior vice president of McAfee Labs, said in a statement.

A 2009 study by computer antivirus maker McAfee and SAIC, a technology security firm, estimated that computer crime cost companies $1 trillion across the globe, but analysts say the actual total is sure to be higher as computer security breaches are underreported.

“I think all the service providers are victims of this type of issue, it’s just whether the company has a public interface to warn users of this type of problem is the big question,” Andrew Lih, author and professor at the University of Southern California, told CNN.

“Google has been pretty good at being forthcoming in having this kind of dialogue with its users,” Lih said. “It’s very possible to probable that these other service providers, from Yahoo to Microsoft to any of these other ones, have had these types of attacks, it’s just that Google has been very public in trying to combat this.”

For more:  http://business.blogs.cnn.com/2011/06/07/the-hidden-cost-of-cybercrime/

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by | June 5, 2011 · 9:50 am

Hospitality Industry Legal Risks: Amended "Americans With Disabilities Act" (ADA) Became Law On May 24 With Potential For "Increased Frequency Of Litigation Losses"; Management Must Improve Accomodation Efforts

“…under the amended act, an employee who suffers from depression may be able to function quite normally with the aid of medication but will still be considered to be disabled and will need to receive accommodation….”

“…the frequency of discrimination claims will likely increase — as will the frequency of litigation losses — but she says the severity of individual claims will likely not change all that much, with class actions in this field being a rarity…”

Existing employment-practices liability insurance policies shouldn’t have to be rewritten or modified, she says. “We would push back on any attempt to limit coverage just because the act has been expanded.”

Employers, however, should be integrating their disability-management programs to include non-occupationally injured and ill employees, and not just workers’ compensation cases, according to Pimentel.

“That is the big trend, and by the way, from an ADA-compliance standpoint, I recommend employers take a close look at doing that,” Pimentel says.

Employers should also be revisiting how much training they are doing among their supervisors on employee etiquette, language and comfort levels in communicating with disabled employees, he advises.

“Talking to them about their needs for accommodation is … an enforced requirement under the law,” Pimentel says.

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=533338925

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

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