General Liability

Who Is Covered?

Your organization's General Liability insurance program provides coverage for bodily injury, property damage and personal injury. The insurance program protects the following entities and individuals as Named Insureds:

 

  • The local undergraduate chapter, its officers, members (including new members) and volunteers while acting on behalf of the organization
  • House/Facility corporations, alumnae associations, colonies, and all members, employees and volunteers thereof while acting on behalf of the organization
  • The national fraternity/sorority, foundation, other national entities, and all officers, employees, and volunteers thereof while acting on behalf of the organization

This coverage protects any Named Insured from third-party claims alleging bodily injury, property damage, or personal injury. This coverage will defend Named Insureds against any covered claim, even if the claim is groundless.

 

This coverage is for general public liability. It is not accident insurance covering members for injuries sustained on the chapter premises and/or during chapter activities. This program is not a substitute for personal health or medical insurance.

 

 

Type of Coverage

Coverage Description

Premises/Operations Each Occurrence

Covers liability arising out of the fraternity/sorority premises and operations.

Products/Completed Operations Liability

Covers injury directly resulting from the preparation and consumption of food and beverages.

Personal Injury & Advertising Injury

Covers libel, slander, wrongful eviction from, wrongful entry into or invasion of the right of private occupancy, and discrimination or humiliation that results in injury to the feelings or reputation of a person.

Damage to Premises Rented to You

Covers damage to premises rented to you.

General Aggregate Limit

The most the insurance company will pay for claims in any one policy term. This limit applies per location.

Guest Medical Payments

Covers medical expenses for bodily injury caused by an accident on premises you own or rent or because of your operations. This coverage does not apply to any insured, any tenant, any employee or to a person injured while participating in any sports or athletic event.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Liability Trends

 

Signing Contracts

We have recently seen an increase in the number of contracts that our clients are signing that obligate their organization to coverages that are beyond those available under the General Liability program or are contradictory to their organization's policies.

 

Please contact MJ Insurance – Sorority Division if you are reviewing a contract that includes any of the following requirements:

 

  • Hold Harmless Agreement/Indemnification Provisions
  • Additional Insured request
  • Primary Additional Insurance request
  • Any other reference to providing evidence of insurance to the third party.

For more information, check out the "Planning an Event" category in the website Library.

 

Babysitting Services

 

Many chapter members have contacted us to find out if it is acceptable for them to provide babysitting services as a fundraiser or to just allow chapter members to baby-sit at the chapter facility. Our response has been that this exposure is not acceptable from an insurance standpoint and the chapter should not participate in or sponsor any activities related to childcare.

The insurance company does not contemplate the difficult exposures involved with childcare in your General Liability rates. In addition the potential for physical and sexual abuse exists, and the chapter houses are not furnished with "little ones" in mind. For these reasons, there is no coverage for these types of activities..

 

Riskier Events

 

We are seeing an increase in the number of riskier and more robust activities being proposed as chapter events, such as the following:

 

  • Ropes courses Hay rides
  • Mud/color/zombie runs Rock climbing
  • Skeet shooting Paintball
  • Trampoline-a-thon Slip-and-Slides
  • Haunted attractions Mazes
  • Bounce Houses and Dunk Tanks

On their own, these activities are concerning because of the greater potential for injury due to the more physical and/or dangerous nature of these activities. For additional information, please refer to our position paper on the topic.

 

Watercraft Coverage

 

The insurance policy covers any liability associated with events held on any watercraft under 55 feet in length. The policy covers any liability associated with events held on any watercraft over 55 feet IF there is a contract in place and a crew is utilized. If you are contemplating holding an event on a watercraft and have a question as to whether or not coverage would apply, please contact Ruth Akers at MJ Insurance (ruth.akers@mjsorority.com or (888)442-7470).

 

Increase in incidents

 

We are seeing an increase in the frequency and severity of liability incidents – both at the chapter premises and at chapter events. Liability incidents are up 15 percent, and member injuries are up a concerning 68 percent.

 

Parental involvement


We and our clients have noticed a substantial increase in parental involvement with membership, claims, and other issues. We encourage our clients to educate their member's parents about the insurance program, and we have created two resources to help our clients communicate this information to member's parents: a sample letter to member's parents and the Insurance Basics for Member's Parents webinar.

 

Liquor Liability

 

Good risk management should be used in determining the providers that you wish to use for your functions. As such, you should only engage an establishment that has comprehensive and adequate liability insurance, including liquor liability when the function includes the serving of alcoholic beverages. There is much confusion over the differences between liquor liability and a liquor license. We have created a position paper on the topic that we encourage those involved with planning events with alcohol to read thoroughly before signing an agreement with a third-party vendor.