Tag Archives: Risk Management

Hospitality Industry Risk Solutions: Hotel Housekeeping Carts Are Now Smaller Leading To Increased Room Security, Less Employee Injuries And Reduction In Amenity And Towel Theft

 ”Items are not exposed to people walking through hallways so theft of amenity items or towels is greatly reduced…there’s a safety issue, too…Housekeeping staff would park the larger carts outside and keep the door open while they cleaned…not so with the Hotel Housekeeping Safety & Securitysmaller version…the guest comes back and sees the door wide open (and would) think anyone can get in the room…”

“Linen closets (are now) situated closer to the rooms for easy access, eliminating the need for the larger carts. The housekeeping staff has been more productive with the smaller carts because they can move around more quickly, he says. They’re also less prone to injury as the larger carts were heavy to push around…”

Big, rolling housekeeping carts are disappearing from many hotel hallways, just like the floral polyester linens they used to carry. Hotels say they’re replacing cumbersome carts with smaller ones sometimes akin to golf caddie bags out? of necessity, in addition to convenience and even appearance.

Among those saying goodbye to the hall-blocking carts: The Staybridge Suites Times Square in New York, The Ritz-Carlton in Charlotte and the Renaissance Charlotte SouthPark Hotel.

Hotel general managers say there are a number of reasons why smaller is better.

  • Hotels don’t use duvets and bulky linens anymore, so there’s no need for large carts, they say. Plus, storage space is at a premium, and smaller carts don’t take up much space.
  • The bags are small enough to take into the room and leave the hallways clear and safe. They also don’t nick the walls of elevators and corridors like the large carts did.
  • But more important, the guests prefer them, says Rich Hotter, general manager of the Staybridge Suites Times Square.

For more:  http://www.usatoday.com/story/hotelcheckin/2013/05/10/hotels-housekeeping-carts/2146993/

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Filed under Guest Issues, Injuries, Insurance, Labor Issues, Liability, Maintenance, Risk Management, Theft

Hospitality Industry Property Risks: Illinois Restaurant Limits Floodwater Damage Through Installation Of “Special Flood Prevention Equipment”; $700,000 Cleanup Costs In 2008 Lowered To Under $1000 In 2013

“…special flood prevention equipment (was installed) at the McDonald’s after the 2008 flooding; including shutoff valves for the sewer lines, and Restaurant Flood Risksrubberized door dams… only about a half an inch seepage (from this flood) in the building through penetrations in pipes, and stuff like that, unlike 2008, (when there was) 27 inches…(the owner estimated there was) as much as $700,000 on cleanup from the 2008 flood, but only several hundred dollars this year…”

Two eateries next door to each other in northwest suburban River Grove were in very different stages of cleanup on Tuesday, as flood waters from the Des Plaines River slowly receded. WBBM Newsradio’s Bernie Tafoya reports, next door at the famous Gene and Jude’s Red Hot Stand, a big flood cleanup was underway on Tuesday. Workers were seen donning respirators while cleaning up inside on Tuesday, and tossing out flood-damaged debris, while the McDonald’s next door was getting ready to open for business.

It’s not that the flooding wasn’t as bad at the McDonald’s, it was the result inside the two restaurants.

“It’s money well-invested,” Karayanes said.

For more:  http://chicago.cbslocal.com/2013/04/23/a-tale-of-two-restaurants-flood-damage-varies-depending-on-preparations/

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Filed under Flood Insurance, Maintenance, Management And Ownership, Risk Management

“2013 Hospitality Law Conference”: Petra Risk Solutions To Host The “Convergence Of Risk Management, Legal Compliance And Loss Prevention” Workshop On Feb 11

Hospitality  Law  Conference flyer-page-001

Hospitality  Law  Conference flyer-page-001

Hospitality  Law  Conference flyer-page-001

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

Hospitality Industry Security Risk Management: Hotels Face Increased Risk Of “Guestroom Burglaries” From Electronic Door Lock Hacking Devices

By Todd Seiders, CLSD

As many of you may have heard, the computer “hacking” community has made a small device that can open Onity hotel guestroom door locks. It costs approximately $50 in readily available electronic parts, and the device has been concealed in an iPhone case and a Dry Erase marking pen body (yes, the felt tipped dry erase pen used on whiteboards).

The hacking device plugs into the door locks, and opens the door. It shows up on the lock readout as a “portable programmer” use, but no serial number for the portable programmer is noted.

**We are now experiencing actual guestroom burglaries and guest thefts by use of these devices in Texas. Multiple rooms have been hit at several hotels. An arrest was made in Houston on some of these burglaries, so I hope to have additional info on that very soon.

**I am also receiving reports from hotels in Florida that a similar “hacker” has been seen carrying a laptop computer and using a key card (possibly connected to the laptop) to open guestroom door locks. There have been several guestroom burglaries and actual witnesses who saw the suspect with his laptop, using a key card to access locked guestrooms.

Please TRAIN and notify your hotel staff that these burglaries are spreading across the country. Hotel staff should be vigilant while they are on the guest floors and paying attention to guests walking through hallways. Take time to watch guests walking through your hallways to ensure they are going to a room and entering it. Be very suspicious of someone carrying a laptop or small bag wandering the hallways. Greet guests and ask them if they need assistance. If they appear nervous, or cannot tell you what room they are looking for, escort them to the lobby, or escort them to where a security camera is, so you can get a picture of them. If they leave the hotel, follow them and try and write down a vehicle license plate on their vehicle. Your hotel staff has to be more active on your guest floors when they see people walking around.

Onity locks is not accepting liability for the defect in their hotel locks, and have offered a software fix for the problem. Onity is charging hotels to supply the fix.

I’m sorry to say that this burglary issue will only get bigger as the hackers share their tales and their build your own device details in the future.

I’ll keep you posted on this topic…..

Todd Seiders, CLSD
Director of Risk Management

Email: ToddS@PetraRiskSolutions.com
Phone: (800) 466-8951 ext 207

Direct: (562) 623-0976
Fax: (800) 494-6829
Lic #0817715

 

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Filed under Guest Issues, Insurance, Liability, Maintenance, Management And Ownership, Risk Management, Theft, Training

P3 Hospitality Industry Risk Report: “Hotel Power Outage Checklist” Presented By Director Of Risk Management Todd Seiders Of Petra Risk Solutions (Video)

Petra Risk Solutions’ Director of Risk Management, Todd Seiders , offers a P3 Hospitality Risk Report – ‘Hotel Power Outage Checklist’. 

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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Hospitality Industry Information Security: Hotel Chain Computer System Hacked By Man Who Threatened To Reveal Confidential Information If He Was Not Hired For IT Position

“…an infected email attachment (was) sent to some Marriott employees to install malicious software on the company’s system that gave him a “backdoor” access to proprietary email and other files…”

“…Nemeth sent an email to Marriott staff on November 11 last year, informing them that he had been accessing Marriott’s computers for months and had obtained proprietary information… He threatened to reveal the information if Marriott did not give him a job maintaining the company’s computers…”

A Hungarian citizen has pleaded guilty to stealing confidential information from the computers of Marriott International, and threatening to reveal the information if the hotel chain did not offer him a job maintaining the company’s computers, the Department of Justice said.

Attila Nemeth, 26, pleaded guilty in a US court, according to a statement by DOJ. He was detained after he travelled to the states on a ticket purchased by Marriott for a fictitious job interview.

As he had not received a response from Marriott, Nemeth sent another mail on November 13 containing eight attachments, seven of which were documents stored on Marriott’s computers. The documents included financial documentation and other confidential and proprietary information, the DOJ said.

A US Secret Service agent, using the identity of a fictitious employee of Marriott, communicated with Nemeth on November 18, who continued to call and email the undercover agent demanding a job to prevent the public release of the documents, according to the plea agreement. Nemeth emailed a copy of his Hungarian passport as identification and offered to travel to America, according to the DOJ.

For more:  http://news.techworld.com/security/3320672/marriott-hotel-chain-hacked-by-disgruntled-job-seeker/

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Filed under Crime, Labor Issues, Liability, Maintenance, Management And Ownership, Privacy, Risk Management, Technology, Theft

Hospitality Industry Insurance Risks: Hotel & Restaurant Owners Must Review And Update Insurance Coverage To Protect Their Businesses

  •  Proper insurance to value (ITV). The market sometimes offers blanket and agreed amount limits, which can help buyers overcome an instance where the insured has purchased too little building coverage.
  •  Business income limits. Most insurance buyers don’t take time to complete a BI worksheet—a valuable tool to determine proper exposure levels. The tool forces buyers and agents to address all aspects of a potential loss and its business impact.
  • Employee dishonesty limits. Hotel owners think they’ll never use this, and then learn their controller has been siphoning off small amounts of money for years, and the total loss is substantial.
  • Guest discrimination coverage. Hotels might buy employment practices coverage and not the guest coverage. Some specialty programs provide the coverage in the GL form.
  • Property in your care, custody or control. This is a “must have” for all hotels. Agents can offer this in the GL form or buy it as a legal liability (innkeepers) coverage on the crime policy.
  • Health care professionals as insureds. Resorts with spas have this exposure and need this coverage.
  • Valet parking services. Most full service upscale and luxury hotels and resorts offer valet parking services and need to be sure they are covered properly.
  • Ordinance and law. This is key property coverage with the ever-changing building codes. Buyers either buy too little or go without to help control cost. That’s not a good decision.
  • Green building coverage. The three key coverages are:

Green certified coverage. For a loss to a green certified building, coverage available from AGPOM will apply to rebuilding and additional expenses driven by regaining green certification.

Green upgrade coverage. This coverage pays the extra expense when a non-certified building opts to go green after a loss. Added costs might result from use of Energy Star equipment; eco-friendly lighting, paint and carpet; or water-efficient plumbing fixtures.

Green commissioning expense. This coverage provides for a commissioning engineer to inspect a newly built or repaired system after a covered loss to confirm operation at peak performance and expected efficiency.

For more:  http://ventureprograms.com/wp-content/uploads/articles/Hope%20For%20Hospitality.pdf

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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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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

Hospitality Industry Risk: “Petra Risk Solutions” Releases “P3 Hospitality Risk Report” Video On “Innkeeper’s Limit Of Liability”

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