by | August 6, 2011 · 8:46 am

Hospitality Industry Property Risks: North Carolina Hotel Ceiling Collapses After "Drainage Pipe Bursts" During Heavy Rain (Video)

“…A drainage pipe that helps drain water from the roof runs through the ceiling in the lobby…. The pipe burst causing a portion of the ceiling to collapse and flood the lobby with water…”

CLICK ON PICTURE TO WATCH VIDEO

A portion of the ceiling in a Charlotte hotel collapsed Friday afternoon after heavy rains caused a pipe to burst. Erik Slemon and his father, Allan Goldberg, are from Miami and were staying at the hotel to attend a men’s clothing trade show.

“In a matter of seconds it got a little stronger,” Erik Slemon said.  “I pulled out my phone and I shot it and the whole ceiling just came down.  The whole lobby was flooded in a matter of five seconds.” No one was injured, and there is no official damage estimate from the flooding.

For more:  http://www.wcnc.com/news/local/Pipe-bursts-at-Charlotte-hotel-flooding-lobby-126844238.html

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by | August 5, 2011 · 6:38 am

Hospitality Industry Information Security Risks: "Cyber Attack Claims" Increase 56% Mainly Through "Rogue Employees, Malicious Attacks, And Mistakes By Outsourcing Firms"

“…The vast quantities of personal, identifiable information collected by the leisure and hospitality industry have made the sector a chief target for cyber attacks, according to Willis…with reports of a 56% rise in cyber claims over the past year….”

“…Rogue employees, malicious attacks, and mistakes by outsourcing firms appear to be the main culprits, with hackers getting ever-more sophisticated in their attempts to drain corporate databases of customers’ personal details…”

Willis warns that some breaches can cost in excess of $100 million and with more stringent data protection legislation coming into force, companies’ financial exposure to this type of crime will increase further.

“Recent breakthroughs include the introduction of identity theft solutions and Payment Card Industry fines coverage, which helps to protect companies from penalties linked to the mismanagement of credit card data.”

For more:  http://www.insurancedaily.co.uk/2011/08/03/hospitality-and-leisure-attract-cyber-attacks/

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by | August 4, 2011 · 2:19 am

Hospitality Industry Employee Risks: Congressional Committee Investigates "Multiple, Redundant Inspections" By OSHA Related To "Labor Intensive" UNITE HERE Campaign On "Safe Work Environments" Against Hotel Management

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by | August 3, 2011 · 6:43 am

Hospitality Industry Employee Theft Risks: Maryland Hotel And Convention Managers Indicted For Theft In Employee Insurance Scam

“…authorities believe that Mohammad and Rowhani stole about $17,000 from roughly 19 employees who thought the money was being put into an account to pay for insurance…”

A trial date has been set for two Hagerstown Hotel and Convention Center senior managers who prosecutors allege stole about $17,000 from employees during an insurance scam.

Hassan Mohammad, 56, and his wife, Yasamane Rowhani, 47, both of 2142 Cathedral Ave. in Washington, D.C., were indicted by a Washington County grand jury on one count each of theft/scheme over $500 and conspiracy to commit theft/scheme over $500, according to Washington County Circuit Court documents.

For more:  http://articles.herald-mail.com/2011-08-02/news/29844890_1_trial-date-scheme-insurance-scam

 

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by | August 2, 2011 · 6:38 am

Hospitality Industry Employee Injury Risks: California Legislation Requiring "Fitted Sheets" On Hotel Beds To Reduce Heavy-Lifting By Housekeepers Is Up For Vote This Month By State Assembly

“…(California) SB 432.. would require hotels to use fitted sheets instead of flat sheets to reduce the amount of mattress lifting housekeepers must do. The legislation also would require hotels to provide long-handled mops so housekeepers won’t have to clean bathrooms on their hands and knees as they do now…”

The state Senate has passed a bill proposed by Sen. Kevin de LeÏŒn (D-Los Angeles) that would help prevent or reduce housekeeper injuries. It comes up for a vote in the Assembly this month. But the bill is facing stiff opposition from the hotel and tourism industry, which says it will increase costs and stifle growth.

A representative of the hotel industry, led by the California Hotel and Lodging Assn., told a Senate Committee that if SB 432 passes, California hotels will have to spend an additional $15 million or more to buy fitted sheets to replace the sheets for 550,000 beds at $25 per sheet. But hotels generally replace their sheets annually..

For more:  http://www.latimes.com/news/opinion/commentary/la-oe-cohen-maids-20110802,0,7847167.story

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by | August 1, 2011 · 6:08 am

Hospitality Industry Crime Risks: Major Hotel Operator Improves Staff Training And Procedures After "Gang-Led Child Prostitution Ring" Investigation Results In Indictment Of California Hotel Owner

“…The investigation resulted in an April federal indictment of 38 people, including suspected gang members and the owners of a Wyndham-franchised Travelodge in Oceanside, authorities said…”

Hotel operator Wyndham Worldwide will improve its staff training and procedures after authorities cracked down on gang-led child prostitution rings in California hotels, a probe that drew media and activist attention to the chain, a hotel spokesman said Friday.

Wyndham is expanding its years-long efforts to fight child sex trafficking by reviewing its operating practices in partnership with the nonprofit ECPAT-USA (Ending Child Prostitution and Trafficking), said Michael Valentino, director of communications for Wyndham Worldwide.

Southern California authorities recently completed an 18-month investigation into allegations that three rival Crips gangs collaborated to prostitute girls and women out of California hotels through Internet-arranged meetings.

 A CNN story in June prompted one activist to lead a 14,000-signature online petition drive on Change.org, an activist platform, demanding that Wyndham reform its business policies.

“As long as human trafficking and exploitation continue to be supported by those profiting from this tragic practice, we believe no member of the travel and tourism industry can ever guarantee these events will not occur in the future,” Valentino told CNN in an e-mail Friday.

For more:  http://thecnnfreedomproject.blogs.cnn.com/2011/08/01/hotel-chain-boosts-staff-training-to-fight-child-prostitution/

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by | July 29, 2011 · 6:45 am

Hospitality Industry Theft Risks: Hotel Bathrobes, Towels, And Bedroom Supplies Can Be Monitored By RFID Technology

“…hotels are using the tech to monitor the whereabouts of bathrobes, bed sheets, duvet covers, bathmats, pool towels and banquet linens…”

“…Up to 20 per cent of hotels’ stock typically go missing, estimates William Serbin of Linen Tracking Technology…”

The RFID technology – which stands for radio frequency identification and requires an installed chip that can be read by an electronic reader – has been used by various industries for several years to organise product storage and tally shipments.

The company, which sells trackable linens, has teamed with Fluensee, an inventory tracking technology firm, to market the RFID tags to hotels.

A towel with a chip is about a dollar more than other towels, he says. Bendable and washable, the tags can be read by sensors up to six feet away.

When towels are removed from a closet, for example, a reader station can register how many, so that the closet can be restocked.

Read more: http://www.dailymail.co.uk/news/article-2019930/Hotels-combat-towel-theft-electric-tags-traceable-microchips.html#ixzz1TVODXBal

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by | July 28, 2011 · 11:04 am

Hospitality Industry Liability Risks: Florida Hotel Sued By Victim Of ATV Crash For "Serving Alcoholic Drinks" To Defendent

“…The lawsuit, filed in Miami-Dade County Circuit Court, contends that the Clevelander Hotel regularly allowed on-duty police officers to drink alcohol and hang out at its nightclubs…”
 
A lawsuit filed Thursday claims that a popular South Beach hotel regularly served alcoholic drinks to an on-duty police officer who later crashed his speeding all-terrain vehicle into two people strolling the beach before dawn, seriously injuring both.

The lawsuit filed on behalf of Kitzie Nicanor, 29, seeks unspecified damages from the Clevelander Hotel and Derick Kuilan, who was fired from the Miami Beach Police Department shortly after the July 3 crash. Kuilan, 30, also faces criminal charges in the case.

Nicanor suffered a traumatic brain injury that will likely require years of rehabilitation, said her attorney Frank Toral. Nicanor, a Seattle resident who has a 1-year-old son, remains hospitalized in stable condition. Her parents are caring for her son.

Earlier this week, Miami Beach Police Chief Carlos Noriega said his department was investigating whether on-duty drinking by officers, clearly banned under agency policy, was nevertheless more common than expected.

http://www.newsok.com/atv-crash-lawsuit-names-sobe-hotel-fired-cop/article/feed/280408?custom_click=pod_headline_usnational-news

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by | July 26, 2011 · 10:25 am

Hospitality Industry Security Risks: Hotel "Cyber Liability Myths Exposed"

Cyber Liability Myths Exposed

By Brad Durbin – Petra Risk Solutions 

 

In today’s e-commerce society, operating your hotel without cyber liability coverage is like attempting to drive your car blindfolded on a  Southern California  freeway during rush-hour traffic. 

Here are three common myths and misconceptions I’ve heard repeatedly when discussing cyber liability insurance coverage with hotel owners and operators. 

Myth #1 – “I use the online reservation system offered by my franchise.  They’ll cover me if their system is hacked and my guest’s personal information is compromised.”

This is by far the most common misconception among hoteliers about their exposure and responsibility for a data breach. It’s easy to see why.  You are using your franchisor’s reservation system, which is offered as part of your franchise agreement.  Why wouldn’t they cover you if their system is hacked? 

The answer is in your contract.  While some franchise agreements are more favorable in this area than others, most contain special provisions regarding the use of their online reservation systems.  These provisions typically state that the hotel will be responsible for defending the franchisor and holding them harmless, regardless of whether the data breach came from within the online reservation system. 

The exposure is even greater for non-franchised properties using third party reservations system providers or wholesalers.  I have yet to come across a contract for these services that could be viewed as favorable for the hotel in the event that the reservation system is breached. 

 Myth #2 – “If a hotel guest’s credit card information is stolen at the property level, my Payment Card Processing company will cover me under their policy.” 

Most hoteliers erroneously assume that their Payment Card Processing Company (PCP) will have their best interest in mind in the event of a data breach.  I’m not sure why.  No business, regardless of how great or longstanding your relationship with them has been, will volunteer to pay significant attorney costs and consumer notification fees for you unless they are contractually obligated to do so.  Not surprisingly, most PCP contracts are heavily weighted in favor of the PCP provider regardless of where the data was taken from or if the PCP company is to blame.

Your liability is even greater for a data breach that can be traced back to the hotel property level.  If this happens, the Payment Card Industry (PCI) mandates that you conduct a forensic accounting audit of all your records.  These audits can cost $20,000 – $25,000 for a single location, limited service property. This amount does not include fines typical for any non-compliance issues discovered during the audit. 

Myth #3 – “Cyber liability coverage is a waste of money.”

Most states have laws requiring you to notify EVERY GUEST in your database upon discovery of a breach (e.g. California Senate Bill 1386).  Analysts estimate that the average cost for this notification is approximately $30 per record.  Multiply this by the number of records in your system, or the number of guests who have stayed at your hotel over the years, and you can see just how financially devastating these claims can become. 

For a typical limited service franchised property with $2,500,000 – $5,000,000 in annual room revenue, a cyber liability policy with a $1,000,000 limit can usually be obtained for less than $7,000 annually… an extremely fair price point considering the risks and hefty costs associated with a data breach.

Final Thoughts

When a hotel data breach occurs, guests won’t know or care that another company may be responsible.  They will come directly to the hotel for a remedy. The ENTIRE FINANCIAL BURDEN for notification costs, legal defense, and monetary settlement of all related claims may be borne directly by the hotel – if it does not have an appropriate cyber liability insurance policy in force.

To protect your hospitality assets, select and obtain cyber liability coverage that will address PCI fines, consumer notification costs, credit monitoring, and any government or regulatory action levied against your business in the event that a data breach is discovered.  Not all cyber policies include coverage for these areas, so it’s important for you to work with a qualified hospitality insurance broker. 

Securing proper cyber liability insurance coverage is a cost effective method for hoteliers to help mitigate the risks associated with owning and operating a hotel in today’s digital society. 

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Brad Durbin is a Hospitality Insurance Specialist with Petra Risk Solutions. For questions about Hotel Cyber Liability or any other Hospitality Risk Solutions, contact Brad at bradd@petrarisksolutions.com.

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by | July 25, 2011 · 10:29 am

Hospitality Industry Cybercrime Risks: Hotel Management Must Insure Against "Illegal Use" Of Internet Access By Individuals Engaging In "Online Piracy"

“Small businesses that offer Internet access, such as a coffee shop or a hotel or even a car mechanic with a waiting area, should be aware of the industry’s crackdown on piracy and take steps to ensure their customers aren’t using the service to steal content,”

 “…people don’t want to pirate music from home because they’re afraid of getting caught, so they’ll use the WiFi connection of a (outside business)…”

The National Federation of Independent Business, a non-profit small-business association, issued a warning to Main Street entrepreneurs who offer Internet access to their customers: Take steps now to avoid allegations of online piracy. Record labels, movie studios and other industry groups recently struck a deal where participating Internet providers will issue warnings to customers whose accounts are allegedly used to steal content.

Under the deal, customers whose accounts are allegedly used for piracy will receive at least five alerts from their Internet provider. Upon sending the fifth notice, the Internet provider may implement certain “mitigation measures” to stop the alleged piracy, including reducing Internet speeds or redirecting traffic to a special landing page until the customer contacts the Internet provider to discuss the issue.

“Internet service providers wouldn’t have to pull the plug on a customer after the sixth notice, but that’s a possibility, and that’s where businesses have to watch out,” said Beth Milito, senior executive counsel for the NFIB. “Small businesses rely on their Internet connections the same way they do the telephone. It’s how they communicate with customers and vendors. It’s where they do business.”

  • One easy way to discourage abuse for businesses offering WiFi is to prevent people who aren’t customers from using their Internet connection by requiring a password. “For example, they could print a password on the receipt and change it periodically, to prevent non-customers from using the service,” Milito said.
  • Businesses can also block access to certain Websites and types of Websites, she added. “This requires a little bit of know-how on the part of the small-business owner, and it may accidentally block access to legitimate Websites, but it also can discourage people from using a business’s network to steal content,” she said. “With more and more people carrying smartphones and even tablets, free WiFi can help a small business attract and keep customers, but unless a business owner uses commonsense and takes precautions, those customers could come at a hefty price.”

For more:  http://www.eweek.com/c/a/Midmarket/Security-an-Issue-for-Businesses-Offering-Free-WiFi-253920/

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