Tag Archives: Federal Law

Hospitality Industry Risk Management Update: “Water Shortages Threaten Hotel Industry”

“It’s no wonder then the hotel industry has become a target of well-meaning legislators and bureaucrats looking to save some precious water for the state.pool The California State Water Resources Control Board recently instituted new rules that among other things require foodservice establishments to provide water only to customers who request it and mandate hotels give an option to guests of not having linens and towels laundered daily.”

Let’s face it: The hotel industry in the United States over the past 20 years has mostly been paying lip service to sustainability issues. It’s difficult to blame hotel owners and operators for that attitude because environmental issues are seldom major operational or profitability concerns at most properties.

There are exceptions, of course, but for the owner of a typical mid-market suburban hotel, green issues typically are only seriously addressed for one of two reasons: the vague promise of operating cost savings or the public relations glow generated by being a good and green citizen.

That situation is beginning to change, especially in California and the Southwest. The culprit is water, or the lack thereof.

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Filed under Finances, Hotel Industry, Maintenance, Management And Ownership, Pool And Spa

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.

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