Hospitality Industry Safety Solutions: “Hotel Power Outage Risks” Discussed By Todd Seiders, Director Of Risk Management At Petra Risk Solutions

October 21, 2013 Issue

“Getting Through A Power Outage Is All In The Planning And Prep”

By Nicole Carlino, Associate Editor

For the average household, a prolonged power outage can be a nuisance, but for a hotel, it’s logistically difficult and a potential insurance nightmare.

Todd Seiders, director of risk management, Petra Risk Solutions, a hotel-specific insurance broker, noted that there are three main pitfalls for hotels when it comes to a loss of power: loss of business; guest and employee safety; and food spoilage.

“Policies are cleverly written, and they often don’t cover the first 48 hours of a power outage,” Seiders said, noting that many outages last less than that, which is still long enough for guests to decide to cancel reservations. And, should a guest be hurt, the hotel is the entity they’re going to sue regardless of who is at fault for the outage. As for food spoilage, Seiders said a hotel could lose thousands of dollars if it isn’t properly prepared for power loss.

Preparedness, he said, is the key. Seiders noted that one of the best things a hotel can do is to make sure it has plenty of flashlights on hand for guests and employees.

“If you don’t have some of these basics ready to go, you may never have them during the entire outage,” Seiders said, noting that others often run out to buy the items during the loss.

In addition to making sure necessary items are in-house, hotels need to review their emergency response plan; know what areas of the hotel an emergency generator will power; know the procedure for rescuing guests trapped in elevators; understand how the fire alarm system works in an emergency situation; have a plan for perishable food; and maintain an employee cell phone list. Also, a hotel should know how the key card machine works in an outage.

“You want to be able to get new guests into the rooms,” he said, noting that in many cases, emergency keys have to be prepared prior to a power outage.

“It’s training,” Seiders continued. “Employees have to be trained in things they’re not accustomed to.” He noted this is down to even simple measures, like knowing where the flash- lights are stored. One of the most important things to do, Seiders concluded, is to make sure to power down the building.

“When power comes back on, it surges,” he said. “That can cause all kinds of damage.”

To view this article online: http://www.nxtbook.com/nxtbooks/icd/hotelbusiness_20131021/#/14