December 7, 2017
Cyber Liability and the Hotel Industry

If your business accepts credit cards, then you are at risk.
Account Executive
Leavitt Pacific Insurance Brokers
Cyber attacks are on the rise, with 43 percent of companies reporting they have experienced a data breach in the past year, as well as year 2016 showing a 40 percent increase in data breaches compared to 2015. This is not a risk to take lightly – if your business accepts credit cards, you are at risk.
In addition to taking proper precautions in safeguarding customer data, it is important to secure cyber liability coverage. This coverage is vital in protecting your business in the event of a data breach. If your business experiences a cyber attack, California State Law requires the notification of every guest in your database upon discovery of a breach. (Cal. Civ. Code §§ 1798.29 1798.8 2 ). The entire financial burden for the notification process may be the direct responsibility of the hotel, and the most current data estimates that is an average cost of $150 per guest. Cyber liability coverage will help cover these expenses as well as provide support with such things as asset recovery and reputation management after a cyber attack occurs.
It is a common misperception in the hotel industry that if you are part of a franchise, the franchisor will bear the burden if a cyber attack occurs. This is generally not the case, even if you are using the franchisor’s reservation system. Now is a good time to review your franchise contract. Most hotel franchise contracts contain provisions regarding the use of their online reservation systems. Most likely, your contract includes a statement that the franchisee is responsible and the franchisor is not. If you are an independent property using a third-party reservation system, your contract undoubtedly states they are not responsible for data breaches due to the use of their reservation system.
Cyber liability insurance coverage is a cost-effective way for hoteliers to help mitigate the risks associated with owning and operating a hotel in today’s digital world. Many business policies specifically exclude this type of risk, so you will need to purchase a separate cyber liability policy. Contact your insurance advisor to discuss this essential coverage.

Leavitt Pacific is an endorsed insurance provider for CLIA. Contact Susan Groff today at 415.254.4088 about cyber liability insurance and the excellent pricing Leavitt offers CLIA members.

CLIA Annual Meeting
December 14, 2017 at 11:00am

  • New laws and legislation presentation by Mike Belote and California Advocates
  • Many new laws impacting lodging industry will be reviewed
  • New board and officers will be presented
  • Timely announcements

email for registration information
More 2018 Labor Laws
We continue our series of the 2018 labor laws which impact most employers.

SB 306 permits the investigation of an employer by the Labor Commissioner — even if there has been no complaint by an employee, if the Labor Commissioner believes there has been occurrences of retaliation or discrimination against a worker during a wage claim or other investigation. Also, the Labor Commissioner may get a court order preventing an employer from dismissing or disciplining an employee, prior to finishing the investigation or deciding if retaliation has taken. Additionally, SB 306 provides for a new citation process for possible violations and penalties.
SB 258: Cleaning Product Right to Know Act of 2017

This bill would require a manufacturer of a designated product, as defined, that is sold in the state to disclose on the product label and on the product’s Internet Web site information related to chemicals contained in the designated product, as specified. The bill would authorize a manufacturer to protect certain chemicals from disclosure by use of a generic name, as specified. The bill would prohibit the sale in the state of a designated product that does not satisfy these requirements.

Workers Compensation Related Bills

AB 44 applies to injuries sustained by employees while on the job in an act of domestic terrorism during a state of emergency declared by the governor. In these situations, employers must provide a nurse case manager to represent injured employees. The Division of Workers’ Compensation will write the regulations defining the extent of the employer’s obligations and the information for required notices.
SB 189, effective July 1, 2018, states when owners, officers of businesses, members of boards of directors, general partners in a partnership and managing members of LLCs may be exempt from workers’ compensation laws.

AB 1422 extends the automatic stay on liens filed by medical providers who are charged with criminal fraud.

SB 489 extends the billing deadline for providers of emergency treatment services from 30 days to 180 days.

CLIA members can call the FREE CLIA Helpline at 916.925.2915 with questions about the new labor laws and other HR and legal issues. One call can recoup the cost of your membership!

Travel Trends Index: Domestic Leisure and Business Travel Continue to Thrive
Brought to you by the U.S. Travel Association
Domestic market’s performance paces overall growth despite storm clouds for international inbound travel

Overall travel in the U.S. showed 3.6 percent year-over-year growth in October, according to the latest Travel Trends Index (TTI).
Domestic leisure travel continues to do most of the heavy lifting for overall travel growth, rising 4.2 percent in October.
That sector’s strong showing is welcome news in the face of troubling international travel figures released by the U.S. government. International arrivals fell 3.9 percent for the year through June, the latest month for which data is available.

The online auction Scholarship Fundraiser website is open for donations.

Bidding starts March 8, 2018
We Appreciate Our CLIA Sponsors
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Sacramento, CA 95814-3805