Category Archives: Insurance

Hospitality Industry Credit Card Risks: Man Who Stole Texas Hotel Guests' "Credit Card Receipts" And "Manufactured Counterfeit Cards" To Purchase Merchandise Sentenced To Five Years In Prison

“…Authorities said Jones and another man, Randy Ray Flaharty, 31, took boxes of monthly credit card receipts of hotel guests from a storage room…”

“…The receipts, officials say, were used to manufacture counterfeit credit cards in document “boiler rooms” and card “chop shops,” which they then used to buy $300,000 worth of merchandise in Texas, Oklahoma and Louisiana...”

“…The cardholders never realized their credit card accounts had been compromised until months, even years, after they stayed at the hotel. But the damage made it hard for some of them to get loans and left lingering headaches in trying to straighten things out, officials said…”

A San Antonio man was sentenced Friday to more than five years in federal prison for stealing thousands of credit card receipts from the Emily Morgan Hotel. The theft allowed conspirators to buy hundreds of thousands of dollars worth of merchandise in three states, authorities say.

Cody Quincy Jones, 34, pleaded guilty in April to ID theft fraud, access device fraud, and aggravated ID theft. Chief U.S. District Judge Fred Biery gave him 41 months for the ID theft fraud charge and 41 months for the access device count, to run concurrently. The judge imposed 24 months on the aggravated ID theft charge, to run consecutively.

The merchandise, which included trailers, televisions, all-terrain vehicles and tires, then was resold or pawned.

The hotel didn’t learn of the thefts until August 2008, and since then, a Secret Service-led task force has ascertained it was San Antonio’s largest identity theft case, with at least 17,000 receipts stolen.

Read more: http://www.mysanantonio.com/news/local_news/article/Conspirator-in-record-setting-I-D-theft-sentenced-1439169.php#ixzz1QF7XXhYu

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

Hospitality Industry Employee Risks: Hotel Management Must Maintain "Employment Practices Liability Insurance" To Protect Against Expensive Litigation Defending "Frivolous" Employee Lawsuits; "Arbitration Agreements As Conditions Of Hiring" Also Helpful

“…based on the new case law, an employer that wins in court can’t even recover attorney fees for frivolous claims, if they overlap with other claims that are viewed as “non-frivolous.”

“…Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying…”

“…Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired..”

That was the ruling last January in a federal court in California. The employer spent $315,000 in attorney fees, and prevailed on each of the ten claims in the lawsuit. The judge found that some of the claims were frivolous, and allocated $85,000 to the employer as reimbursement for the frivolous claims. The 9th Circuit (which also governs federal cases in Oregon) reversed on appeal because the employer didn’t prove that those fees were incurred solely in defense of the frivolous claims. This month, the U.S. Supreme Court made the same ruling in another civil rights case.

So what can employers do to minimize the risk of a devastating loss? Many employers are surprised to learn, after it’s too late to do anything about it, that general liability insurance does not cover discrimination claims. Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying.

Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired. Under these agreements, both sides agree in advance that any employment-related claims will be resolved in arbitration rather than in court. Litigating before an arbitrator tends to be faster and less expensive than court trials. Currently, an Oregon statute requires an employer to tell an applicant about the arbitration agreement 14 days before hiring. A bill is making its way through the Oregon Legislature that would reduce this time period to 72 hours. These agreements need to be carefully drafted to be enforceable.

Read more: Protect against discrimination lawsuits – Oregon Business http://www.oregonbusiness.com/contributed-blogs/5451-changing-rules-for-discrimination-lawsuits#ixzz1Q6ve56Ao

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Filed under Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

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

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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Filed under Guest Issues, Health, Injuries, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Theft Risks: Surveillance Video Shows Man Stealing Flat Screen TV From Washington Hotel Conference Room

“…Surveillance video from the waterfront Homewood Suites by Hilton hotel in Vancouver, Wash., shows a man last week carting out a 42-inch TV set – at 6 p.m. in the evening, according to The Colombian…”

“…The stolen TVs are valued at about $1,000 each. TVs stolen from guest rooms won’t work outside the hotel, but the TV from the conference room will, the story says…”

And the same man is believed to have stolen TV sets from a Staybridge Suites hotel and a Country Inn and Suites hotel near the Portland, Oregon, airport. It’s not clear whether others are involved in the scam.

This particular thief can be seen in the Homewood Suites hotel’s video using a hand truck to haul the TV wrapped in yellow hotel linens into a green Ford Escort wagon, the Colombian reports. He then returned the hand truck to the hotel and drove away.

The items came from the hotel’s conference room, where a meeting was held earlier that day, hotel general manager Kari Jonassen told the Colombian.

“This just makes me so mad that somebody has the gall to do this,” Jonassen told the paper.

For more:  http://travel.usatoday.com/hotels/post/2011/06/vancouver-washington-thief-steals-tv-sets-from-hotels-homewood-suites/174274/1?csp=34travel&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+hotelcheckincommunityfeed+%28Hotel+Check-in%3A+A+road+warrior%27s+guide+to+the+lodging+landscape+-+USATODAY.com%29&utm_content=Yahoo%21+Mail

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Filed under Guest Issues, Insurance, Liability, Management And Ownership, Theft

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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Filed under Claims, Health, Insurance, Liability, Maintenance, Management And Ownership, Risk Management, Training

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

Hotel Industry Pool Safety Risks: Hotel Management Must Insure Full "Pool And Spa" Safety Compliance Including Drain Cover And "Clear Water" Maintenance

“…On average 566 people are hospitalized in Florida each year for injuries suffered from near drowning… Costs of a near drowning-related hospital stay range from $10,000 for standard 2-day treatment to $4 million in case of brain damage…”

“…Federal law requires public pools and hot tubs to be equipped with an anti-entrapment drain cover. A safety vacuum release system is required for those pools or hot tubs with a single main drain…”

 “…Keep pools clean and clear so that swimmers can be seen if they are in trouble in the water. This can prevent drownings. Also clean and clear water is a sign of disease free water. ..”

According to the Florida Department of Health, studies from 2001-2005 suggest that the state averages 465 deaths per year from unintentional drowning. Similar studies suggest that Florida ranks in the United States in drowning deaths for young children. A more recent statistic points that in 2008 71% Florida’s drowning deaths involved children ages 0-4. The federal and state laws offer some pool regulations through the Virginia Graeme Baker Pool and Spa Safety Act of 2007, named after a 7-year-old who died after the suction of a drain entrapped her underwater. Entrapment occurs when a pool’s filtration system sucks a child under water.

The U.S. Consumer Product Safety Commission enforces the law, and public places such as health clubs and hotels must comply or risk an immediate closure of the pool area. So the first step to pool safety is to make sure the pool drain complies with the law and has a safety vacuum release.

In addition to preventing the dangers from faulty drains there are other steps to make pools safer. Many pools with cloudy water may contain harmful bacteria. Believe it or not many deaths and injuries come from bacteria in pools and spas. Legionnaires disease is a disease that can kill and can be acquired from just sitting next to a dirty hot tub or spa. In a recent Orlando case a visitor from England died when exposed to Legionella bacteria and acquired Legionnaires disease sitting poolside next to a hotel spa next to the pool. If the hot tub is dirty or murky, stay away and contact the pool operator and the County Health Department. Your life may depend on it.

For more:  http://orlando.injuryboard.com/property-owners-liability-slip-and-fall/pool-safety-tips-for-summer-.aspx?googleid=291052

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Filed under Health, Injuries, Insurance, Management And Ownership, Pool And Spa, Training

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

Hospitality Industry Employee Risks: Texas Hotel Manager Arrested For Theft As Guest Cash Payments Were Adjusted In The Computer

“….Hotel management discovered Hunter had been stealing for some time, the affidavit claimed. Officials found Hunter would check guests in and adjust off cash payments in the computer, then take the money...”

“…Hunter…was charged with theft over $1,500 under $20,000, according to an arrest warrant affidavit. Hunter’s bond was set at $5,000…”

A 30-year-old woman is suspected of stealing more than $3,000 from a Burkburnett business she worked for. On May 13, police were contacted by a representative of Sunway Hotel Management. The person said an audit of the property found money had been taken from the hotel safe, and from cash transactions.

The representative said Hunter, the general manager, said she had borrowed the missing money to pay for a child’s doctor bill, and would return it when she got paid. She was told she needed to come to the hotel to discuss the issue but never showed up.

A total of $2,618 in cash payments had been taken that way, allegedly all by Hunter. The total reached about $3,268 including petty cash from the safe.

For more:  http://www.timesrecordnews.com/news/2011/may/25/crime_beat_5-25/

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Filed under Crime, Guest Issues, Insurance, Liability, Management And Ownership, Theft