Your organization has developed very sound and comprehensive operational rules and guidelines for your collegiate chapters, your house corporations and your alumnae groups. In addition, they have purchased the most comprehensive insurance coverage available to businesses, which has very few liability exclusions. As a chapter officer, so long as you’re acting in good faith and in accordance with your organization’s policies and guidelines, you are covered by your organization’s policy. As a chapter officer, its crucial that you are confident in your coverage as you make decisions on behalf of your chapter and organization. 

Now that we’ve covered the insurance lingo, the follow up question is often: should you buy higher liability limits on your (or your parents’) homeowner’s policy, buy a personal umbrella policy, and/or increase the limits of insurance on an existing umbrella policy while you’re serving as a chapter officer?

The short answer is that we are confident in the insurance coverage of your organization; there is no need to address this liability as a chapter officer under your (or your parents’) personal homeowner’s policy or personal umbrella policies. We do know that many of the personal lines insurance policies include what is commonly referred to as “outside directorship” liability coverage under their homeowner’s insurance policy.

Here is an example of common wording:

Director’s Liability: Damage is covered if you or a family member is:

We do believe that it is always important that you carry adequate personal coverage, but this decision can be made without the concern about involvement in your sorority/fraternity. We encourage you to consult with your personal insurance agent should you have any questions on whether your policy includes this provision.