Category Archives: Risk Management

Hospitality Industry Legal Update: “Warrantless Searches of Hotel Guest Registers”

In analyzing the searches and seizures from hotel rooms, the court recognized that while a guest is legally registered in a room,warentless searches the hotel room is a temporary residence and thus, just like their primary residence, the guest is entitled to the same protections under the Fourth Amendment to their guest rooms in a hotel as they would for their primary residence.

Many municipalities have enacted ordinances that authorize local police agencies to enter a hotel during regular business hours and request an inspection of the guest register to obtain information as to who is in the hotel, when they checked in and their anticipated check out time, how long the guest has stayed in the hotel, manner of payment and private information given by the guest to the desk clerk regarding their home address, car license plate and drivers license information. The municipalities argue that such ordinances and warrantless searches are necessary to help stop prostitution and drugs or to ensure compliance with the length of time requirements for motel guests. Many hotel operators have allowed the police agencies to inspect the guest registers without objection as they did not want to be subject to arrest or citation for not complying with the police requests.

However, some managers have objected and have been convicted of failure to comply with the inspection request. They argue that the police need a warrant to search the hotel registers and further, that the ordinances are not specifically limited to time, scope and duration of the inspection allowed or an opportunity to seek judicial review of the ordinance before being subjected to arrest and conviction for refusing to comply with the police agency’s request.

For more: http://bit.ly/1F1pS2t

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Filed under Crime, Guest Issues, Hotel Employees, Hotel Industry, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Update: “Class Action Lawsuit Goes After Hotels That Fail to Disclose Resort Fees”

“Brian Kabateck, an attorney for Brin, said he has heard from many hotel guests who have groused about being surprised by resort fees on their hotel receipts. “This is really an insidious practice,” he saidresort fees lawsuit…Although the U.S. Department of Transportation regularly imposes fines against airlines that fail to disclose the full airfare, there may be too many hotels in the U.S. for the Federal Trade Commission to enforce the disclosure law on hotels, Kabateck said.”

If you have ever glanced at your hotel receipt only to be stunned to see an unexpected $28 resort fee, help may be on the way.

A Studio City man has filed a class-action suit against a Las Vegas casino, claiming that the resort is guilty of false and misleading advertising for failing to clearly disclose a mandatory resort fee at the time that he booked the room.

The practice is not unique to Las Vegas.

Undisclosed resort fees are such a prevalent problem that the Federal Trade Commission sent out a letter to 22 hotel companies in 2012, warning that their online reservation sites “may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms.”

For more: http://lat.ms/1HN6ia9

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Filed under Crime, Guest Issues, Hotel Industry, Management And Ownership, Risk Management

Hospitality Industry Security Update: “New Security Mindset: Focus On The Interior”

“We continue to be more focused on perimeter protection than on internal controls and monitoring. It’s clear that attackers are already inside or could be anytime they want and there’s nothing you can do about it on the perimeterJason-Straight-LG…You would think external attacks cause all the damage. But study after study, two-thirds of attacks are mundane insider errors, lost equipment, technology failures, or lack of oversight over vendors.”

Chief privacy officer Jason Straight shares his insights on why organizations are struggling to stop the breach wave — and manage the aftermath.

Hackers keep on hacking, breaches keep on happening. The cycle continues, as major corporations now routinely get successfully compromised. A key element of the equation now is properly and efficiently responding to an attack as well as managing its aftermath.

The same old security missteps–falling for phishing attacks, not locking down sensitive data internally, giving users too much access, for instance–keep recurring. That’s because many organizations aren’t putting their security energy in the right places, according to Jason Straight, senior vice president and chief privacy officer at UnitedLex, which provides outsourcing services and support for the legal industry.

For more: http://ubm.io/1BTm7L2

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Filed under Crime, Employee Practices, Guest Issues, Hotel Employees, Hotel Industry, Maintenance, Management And Ownership, Risk Management, Technology, Theft, Training

Hospitality Industry Risk Management Update: “Preventing Credit Card Fraud at Hotels”

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Petra Risk Solutions’ Loss Control Manager, Matt Karp, offers a P3 Hospitality Risk Report – ‘Preventing Credit Card Fraud at Hotels’. 

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 Crime, Employee Practices, Guest Issues, Hotel Industry, Management And Ownership, Risk Management, Technology, Theft

Hospitality Industry Legal Update: “Marijuana: An Emerging Coverage Risk”

The federal government has greeted legalization by the states with benevolent indifference. The Controlled Substance Act categorizes marijuana as contraband for any purpose,medical marijuana including medical use, designating it a Schedule 1 drug along with heroin and LSD. The manufacture, distribution, or possession of marijuana remains a federal crime for which, if prosecuted, state legalization laws cannot be used as a defense.

The emerging legal marijuana economy will see explosive growth in the coming years. Insurers should be prepared to adopt policies that spell out coverage for legally grown marijuana plants and medical marijuana property. The cannabis industry is expected to grow to nearly $15 billion over the next four years. In states where manufacture, sale and use is legal for recreational purposes, legalization will have a profound impact on not only personal lines insurance, but also commercial coverage, workers’ comp, product liability, healthcare insurance and more.

Currently, 27 states have either decriminalized or legalized marijuana use in some form. Four states: Alaska, Colorado, Oregon and Washington, and the District of Columbia allow recreational use. In addition, recreational marijuana initiatives are expected to appear on the 2016 ballots in Arizona, California, Maine, Massachusetts and Nevada. According to a recent Gallop poll, 51% of Americans now support full legalization. In 2014, Oregonians voted to legalize marijuana by a 56 to 44% margin. More Oregonians voted to legalize cannabis than voted to retain their incumbent Democratic governor or senator in the same election.

For more: http://bit.ly/1Mybsbq

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Filed under Crime, Hotel Industry, Insurance, Management And Ownership, Risk Management

Hospitality Industry Technology Update: “The Growing Risk of Cyber Liability” (Video)

In the last two years, significant data breaches have affected well-known companies such as Target,cyber liability Home Depot, JP Morgan Chase and eBay — just to name a few. The issue has become so prevalent that President Obama issued an executive order in February 2013 to strengthen the U.S. cyber security framework.

In today’s society, we’re experiencing a steady increase in the number of users who utilize the Internet and technology each and every day. As a result, businesses are looking more to technology in order to stay efficient in their business practices. While technology is convenient in many ways, it also exposes businesses to cyberattacks.

According to the Poneman Institute’s Cost of Cyber Crime Study, there was an 18% increase in the number of cyberattacks in 2013, and a report by Symantec on internet security found that 61% of small and midsize businesses experienced a cyberattack in 2013. Hackers are constantly looking to disrupt business operations; hence, it is more important than ever to prepare organizations for potential security breaches.

For more: http://bit.ly/1MtrBRm

And for more how to best protect your property from a cyber security attack, check out the video below from Petra’s own P3 Risk Management Team.

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Petra Risk Solutions’ Loss Control Manager, Marco Johnson, offers a P3 Hospitality Risk Report – ‘How to Help Protect Your Hotel’s Computer Network and Information Systems’. 

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 Crime, Employee Practices, Guest Issues, Hotel Industry, Management And Ownership, Risk Management, Social Media, Technology, Theft, Training

Hospitality Industry Risk Management Update: “Reducing the Spread of Contagious Illnesses” (Video)

A supplement to frequent hand washing is to use hand sanitizer.handwashing To encourage use of hand sanitizers by employees and guests, place labeled hand-sanitizer dispensers at the front desk, restaurant areas, back offices, public restrooms, and elevators. Check and refill the dispensers daily.

Winter months bring an increase of cold, influenza, and other communicable illnesses to the workplace. To reduce the spread of germs and cross contamination, housekeeping departments should focus on common contact points.

Sanitize Hard Services. Most hard surfaces, such as doors, drawers, telephone receivers, TV remote controls, light switches, toilet handles, and in-room directories, can be disinfected with a commercial disinfectant cleaner on a daily basis. Returned guestroom keycards should be placed in a separate bin for disinfecting. All guestroom glassware must be thoroughly washed with hot water and detergent—in a dishwasher or three-compartment metal sink—before being placed back into service. Improperly sanitized glassware and utensils can transmit mononucleosis, herpes, E. coli, salmonella, hepatitis A, influenza, and even staph infections. Hotel glassware should never be washed in a guestroom sink.

For more: http://bit.ly/1E0wrBS

And for more on industry best practices, check out the video below from Petra’s own P3 Risk Management Team.

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Petra Risk Solutions’ Loss Control Manager, Matt Karp, offers a P3 Hospitality Risk Report – ‘Preventing Norovirus at Your Property’. 

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 Employee Practices, Food Illnesses, Guest Issues, Hotel Employees, Hotel Industry, Hotel Restaurant, Maintenance, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Update: “Veteran Says Hotel Dispute Over Service Dog Led to Arrest”

White suffered a traumatic brain injury and spinal wounds while serving with the U.S. Army in Afghanistanservice animal in 2012 when a 200-pound improvised explosive device detonated near his vehicle. The Wyoming, Mich., resident said he has been on anxiety medication and has been helped greatly by Camo.

A bill making its way through the Legislature may prevent situations like the one Monday night in which a young veteran was arrested at a Bonita Springs hotel after he, his family and his service dog were denied lodging.

Jason White, 34, was arrested at the Best Western following a dispute with the hotel manager and staff over his service dog, Camo. He was charged with battery and destruction of property, the Lee County sheriff’s report said, after he kicked and cracked a television and shoved the hotel manager, Vinit “Vinnie” Patel.

For more: http://newspr.es/1Ej6AHZ

And for more on the do’s and don’ts of service animals, check out the video below from Petra’s own P3 Risk Management Team.

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Petra Risk Solutions’ Director of Risk Management, Todd Seiders, offers a P3 Hospitality Risk Report – ‘ADA Service Animals: Do’s and Don’ts’. 

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 ADA, Employee Practices, Guest Issues, Hotel Employees, Hotel Industry, Insurance, Management And Ownership, Risk Management, Training

Hospitality Industry Risk Management Update: “Cyber Security”

[vimeo https://vimeo.com/121258482 w=500&h=281]

Petra Risk Solutions’ Loss Control Manager, Marco Johnson, offers a P3 Hospitality Risk Report – ‘How to Help Protect Your Hotel’s Computer Network and Information Systems’. 

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 Crime, Hotel Employees, Hotel Industry, Management And Ownership, Risk Management, Technology, Training

Hospitality Industry Management Update: “Hotel Room Piracy Shows Dramatic Increase”

“There’s no reason anyone should book outside the block, and if you do, we cannot be responsible. When we see 30 rooms held with no name, immediately there’s a red flag.calla lily inn palm springs - 01 Yes, sometimes organizations do that, as they need the rooms, but a red flag goes up nonetheless,” Dominguez added.

Meeting, incentive, convention and exhibition business is under attack by pirates.

To be more specific, event room blocks are increasingly feeling the effects of room block piracy, in which third parties—sometimes thieves out to steal credit card information and sometimes more legitimate sources—effectively funnel attendees away from official host hotels.

The practice results in host hotels having no record of these attendees’ reservations; attendees themselves thinking they made the booking through a legitimate source, and meeting and event planners often having to pay attrition fees for not fulfilling room-block agreements with host hotels.

Suffering are the attendee, who loses money to the pirate; the hotel, which might have replaced “non-bookings” with less-valuable business, and the event planner and event itself, which run the risk of ruined reputations.

For more: http://bit.ly/18uSCWq

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Filed under Conferences, Hotel Industry, Management And Ownership, Risk Management