Position Paper
We are seeing an increase in the number of riskier and more robust activities being proposed as chapter events and activities, such as the following:
Ropes courses Hay rides
Mud/color/zombie runs Rock climbing/Climbing walls
Skeet shooting Paintball
Trampoline events Slip-and-Slides
Haunted attractions Mazes
Bounce Houses and Dunk Tanks Events over 500 people
Hamster balls Mechanical bulls
Eating activities/contests
Any type of inflatables
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. With good risk management, some of the potential risks associated with these types of events can be mitigated; however, some of these events are inherently dangerous. If we continue to see more claims in these areas, the insurance company may be forced to take action by eliminating some of the coverage that our clients now enjoy. We would prefer that good risk management eliminate action from the insurance company.
In addition to the more physical nature of these activities from a risk management standpoint, we are seeing the contracts in these types of scenarios increasingly contain verbiage that is unfavorable for our clients. Examples of this are where the service/venue includes the requirement that the fraternity/sorority add the venue/service provider onto their policies as an additional insured, contractual verbiage that releases the venue from any and all liability, and the requirement that all chapter members and/or participants sign waivers or releases to eliminate the service/venue from liability. This trend toward more aggressive contractual language with these types of events is concerning for our clients primarily due to the fact that they have little or no control over the equipment and the facility that is being used by its members and to then release the service provider/venue from responsibility is not good business practice.
Thus as we see it you have an increase in the more risky activities, where the service provider/venue is completely “released” from any and all liability and we have the additional trends below to exacerbate the matter:
- Liability incidents are up 15 percent
- Member injuries are up 68 percent
- Economic pressures and uncertainty with health care has impacted both the number and the severity of liability claims
Please refer to your own organization’s policies regarding approved events.
Not all risky events are created equal; please refer to the table below for some specific examples:
| Type of risky event | Red Flag | Better option, yet still risky |
| Ropes courses | Homemade ropes courses on the chapter property | Engaging with an established company or organization that utilizes trained individuals to facilitate ropes course |
| Bounce houses | A bounce house setup on chapter property open to the public | Going to a well-managed facility that has various amusement activities available |
| Slip-and-slide | Set up on chapter property | Going to a well-managed water park |
| Organized runs/walks | Mud/Zombie runs with obstacles | A more traditional 5K on paved surfaces, with appropriate city permits, permissions, etc. |
As you can see from the examples above, there are ways to make seemingly risky activities more advantageous, primarily by holding the event:
- At a licensed establishment that carries adequate insurance limits and practices good risk management in their operations
- At a well-managed facility (as opposed to at the chapter house or somewhere on campus)
If the event is held at another business, they will be primarily responsible for the liability to your members and their business insurance policy will be responding to any claims.
Refer to your inter/national Headquarters for your organization’s policies regarding approved events. Ultimately, it is up to the discretion of each inter/national Headquarters to determine whether or not to allow a specific type of event.
We recommend, when possible, that chapters find alternatives to the types of risky events listed and/or unfavorable contractual risk transfer.
If it is not feasible for you to find an alternate (and insured) venue for the event or to change the event altogether, we recommend that you utilize the services of MJ Insurance Sorority Department by contacting Ruth Akers, Senior Account Manager.
Should you have any questions or concerns, please contact Ruth Akers at ruth.akers@mjsorority.com.
Does this make sense for your House Corporation?
Pursuit of strong risk management will sometimes get in the way of solid business practices. A prime example of this is the reluctance of a house corporation board to have either collegiate chapter members and/or chapter advisors on the board. The fear being the threat this could pose of not “fire walling” liability away from the HC of the chapter operations.
In that the chapter operations and house corporation operations are equally and jointly insured under your organizations national insurance policy, this should be less of a concern for the liability.
We do believe that the increase in the communication between the two operations will be greatly enhanced which ultimately provides for a healthier relationship between the two entities.
One recommendation of helping to narrow this liability would be to have them as non-voting members of your local house corporation board and a minority in number.
The local house corporation is taxed at running the most optimum business for its resident members/other members and using available resources to do so makes sense.
Excerpt from News & Notes
Year end 2017, the MJ Sorority Department was very pleased to see that we now have seventy-eight percent (78%) of our chapter houses under the additional protection of a fire suppression system. The leadership of the women’s fraternities and sororities are to be complemented on this attention to safety for their members and the preservation and protection of their property.
The goal of having a fire sprinkler system is twofold:
- To reduce significantly or entirely the risk of fatalities in a sorority chapter house due to fires
- To reduce significantly the ultimate property damage of the claim and disruption to your operations
Those chapter houses that are sprinklered were generally following the NFPA Code 13R, which required sprinklers except in the attic space. There was the assumption that there would be limited access to the attic space and the attic would be clear of storage and of any other use. The cost advantages of the NFPA 13R code over the prior code of NFPA 13 are substantial, ranging roughly 40-60 percent less. This is due to several reasons:
- Pipe material can be plastic instead of steel (product cost and installation costs)
- Attics do not have to be sprinklered if limited access and use
A trend has emerged with more fires occurring in the attic which has caused the property insurance underwriter some concern. Since there are no sprinklers in the attic, a fire that begins in the attic burns for a period of time undiscovered. It is only when the roofing is burned through and/or burns through the ceiling of the floor below that the building fire is detected. Valuable time has been lost where the fire department has not been notified as the sprinkler system goes off only after the fire burns through another area beyond the original origin site.
The fire results in more dollars loss per fire, it is harder to detect, it becomes larger in size and causes more widespread flame damage. Water damage also affects the dollar loss per fire since the fire is attached at the highest level by the fire department, affecting all of the floors below as opposed to a fire that is attacked on lower floors only.
We have considered how to address this exposure from a risk management stand point and offer up the two recommendations (applies to both sprinklered and non-sprinklered buildings):
Careful attention needs to be given to any electrical devices that may be operational in the attic, such as electric fans, humidifier, etc. Electrical malfunction is the leading cause of attic fires; three out of four of the largest fires in the MJ Sorority Department were due to electrical malfunction.
Any time that work is being done on these electrical devises, it is important to use contractors that have adequate insurance in case a claim occurs that arose out of their work on the item. Should the contractor cause the fire, then the insurance company would have recourse against the contractors own insurance coverage to pay for the damage to your property. See www.mjsorority.com for more details on this matter.
It would also be wise to pay particular attention to the attic space after the work has been done to ensure that the completed work appears to be functioning as intended.
- Install a heat detection/sensor or rate of rise detection/sensor, which is hooked up to your fire alarm system to give quick notice to the fire department of a fire in the attic and the occupants of the chapter house so they can evacuate. These devises can alert fire projection when the temperature in the area spikes up from a fire starting in the space. These sensors are relatively inexpensive and are connected to the fire alarm system. You need to contact your fire alarm system company to get more information of the additional risk management tool.
Tattletale is a portable alarm company that distributes important fire safety tools. Tattletale is also a business partner with Travelers Insurance, the property and liability insurance company for MJ Sorority clients, which enables MJ Sorority clients to have access to preferred pricing. These units are hooked up to the existing fire alarm system and are very reasonably priced.
Of our top four largest claims, three of the four started in an attic and the floors below were indeed sprinklered. As you can imagine when a fire occurs, the liability insurance company underwriter is very pleased that there has been no fatalities; however, the property insurance underwriter is less pleased because with an undetected attic fire, the cost of the ultimate loss is direct damage and loss of use claims are far more substantial than what they would have been if the attic had been sprinklered.
We urge you to review your system and if the attic is not sprinklered, make arrangements to get the rate to rise detectors/sensors installed.
As a property owner, the safety of your resident members is one of your biggest responsibilities, and we believe that these additional risk management recommendations will help you control your risks.
We have had a few requests for sample wording to be used when a group or individual is using your organization name, crest and/or letters inappropriately. We have crafted the following language for your use in those situations. As always is the case in legal matters, we do recommend that you engage legal counsel in these types of situations.
In addition to a letter with the below or similar language, we also recommend that you include any back-up information, including pictures or other accounts of the misuse of the trademark, and any other corresponding documentation that reinforces your position.
Please do not hesitate to contact us with any questions or concerns.
MJ Sorority Sample Template
It has come to our attention that your group and its members continue to misrepresent yourselves as members of [insert organization name and the specific nature of the misrepresentation].
This letter serves to inform you that you have made an unauthorized use of our copyrighted name and symbols in your operation. We demand that you immediately cease the use of such identification on your campus of any association with [insert organization name]. We demand that you desist from this or any other infringement of our rights in the future, referenced under the United States Patent and Trademark Office, which proves ownership or our name and the use of our associated symbols, including our Greek letters.
In the Event of a Claim
Take action quickly.
When the unexpected happens, report your claim right away to put yourself in the surest position—and best enable us to help. It’s not just smart practice; letting us know about a claim is your responsibility as an insured, so don’t get in the way of your recovery by skipping this important step.
Note: In most cases, Heather Cox is your first point of contact when you have a claim. But for an emergency, please call Cindy Stellhorn.
In the event of a claim:
Heather Cox
317-805-7598
heather.cox@mjsorority.com
Complete this form if you prefer to submit your claim online.
In an emergency:
Cindy Stellhorn
317-374-5039
cindy.stellhorn@mjsorority.com
Getting in touch with us won’t be the beginning and end of your response. Here’s a list of actions to take for various kinds of claims.
- Property: First, do whatever is necessary to prevent further damage from occurring. Then call Heather with the date and description of your loss, and estimates for repair or replacement of your damaged items.
- Injuries to Employees: Within five days of the injury, fill out an Employer’s First Report of Injury Form and e-mail it to Heather.
- Injuries to Members or to the Public: Make no statements accepting blame, treat any potential or actual claim or lawsuit as a high priority item, and immediately notify your organization headquarters and MJ; contact Heather with names, date of loss, and details of incident.
- Embezzlement or Forgery: When you have reason to suspect financial foul play, your first step is to remove all financial responsibilities from the person in question. After you’ve done that, give us a call to discuss moving forward with a claim.
For Sorority Chapter Houses
Nearly every chapter facility is subject to severe winter weather. This is true not only of facilities located in Canada and the central and northern portions of the United States, but winter weather damage has occurred in areas as far south as Florida and Texas. Indeed, claim history indicates the areas that are most vulnerable to damage are the southern portions of the country because they are not accustomed to long periods of prolonged cold. For these reasons, it is important that every facility prepare in advance for the possibility of severe winter weather. The following checklist provides a starting point in developing a comprehensive plan to prevent unnecessary losses that can result from winter weather conditions.
| SPRINKLER SYSTEMS | YES | NO |
| Unattended areas inspected hourly or temperature monitored by central station? | ||
| Concealed spaces containing piping provided with adequate heat? | ||
| Building heat maintained at or above 55˚F for areas protected by wet pipe sprinklers? | ||
| Should pipes freeze, is a plan in place to prepare for thawing and pipe leakage? | ||
| In southern locations: are pipes insulated or is heat maintained in preparation for cold weather? | ||
| BUILDING FEATURES | YES | NO |
| Building heating systems repairs or annual maintenance scheduled before cold weather? | ||
| Heating equipment, combustion controls, and safety devices tested for proper operation? | ||
| Windows and doors in good repair and properly weather-sealed? | ||
| Gutters, downspouts, and roof drains are clear? | ||
| Roofs visually inspected for water ponding, structural deficiencies, etc.? | ||
| Areas subject to freezing provided with non-freeze type fire extinguishers? | ||
| Designated individuals authorized to initiate a winter weather alert? | ||
| List of equipment containing water that is to be drained before cold weather? | ||
| List of suppliers for portable boilers and/or heating units developed? | ||
| Designated individual/s to check that temperatures are maintained in the facility when it is closed or un-occupied? | ||
| Designated individual/s to leave faucets slightly open to let water flow to decrease possibility of the pipes freezing? | ||
| Procedure established for monitoring snow depth on roofs and snow removal action plan? | ||
| Are water-filled pipes located in exterior walls or unheated spaces properly insulated? | ||
| Have any pipes that are not required during the winter months been drained? (e.g. exterior hose lines) | ||
| Has any standing water in exterior valves been removed? | ||
| Are hydrants kept free of snow, ice, and other debris for easy access by the local fire department? | ||
| Are trees inspected to remove broken or dead branches? | ||
| BOILER EQUIPMENT | YES | NO |
| Is water flow maintained through process cooling lines and cooling towers to help prevent freeze-up and possible damage? | ||
| Have any pipes, valves, and pumps that are not required during the winter months been drained? | ||
| LIST OTHER FEATURES UNIQUE TO YOUR FACILITY | YES | NO |
*Any box checked “no” indicates a need for correction action.
Essential measures to minimize the risk of a freeze or water damage loss
- Keep furnace on and thermostat set at or above 68 degrees
- Make sure all hoses are removed from exterior water spigots/faucets
- Drain water lines in lawn sprinkler system where appropriate
- Inspect windows and repair all broken glass
- Place additional insulation on exterior walls and windows
- Insulate exterior doors appropriately, and assure all close and latch completely
- Attach and secure downspouts with extension from foundation, not draining onto the driveway, sidewalks, or patios and fully displace water from walking areas
During periods of extreme colder temperatures
- Open the indoor faucets slightly to allow water to trickle as moving water does not freeze as easily
- Leave the doors to cabinets that contain water lines open, this will allow heat to enter the area and help prevent freeze
- If the power goes out, note the time of the outage and have a plan to keep perishable food cold. Potentially hazardous foods, including meat, dairy, eggs, and cooked vegetables need to be stored at or below 41 degrees Fahrenheit.
- e a plan in place if you are without power and heat for extended amount of time
Additional safety measures during colder months
- Clear all necessary snow and ice from sidewalks, fire escapes, and walkways which may result in a slip and fall hazard
- Use fireplace, wood stoves, or other combustion heaters only if they are properly vented to the outside. Exercise caution when heating with these devices, as well as propane appliances, and older wall or floor gas furnaces.
- Never use a charcoal or gas grill indoors—the fumes are deadly.
- Check that you have a working carbon monoxide detector.
- Keep as much heat as possible inside your property. Check the temperature in your home often during severely cold weather.
ChubbWorks (www.chubbworks.com) is a critical component of Chubb’s Employment Practices Liability Loss Prevention Program. This free Web site, created specifically for Chubb employment practices liability customers, is an on-line resource for companies seeking assistance with employment issues. ChubbWorks offers self-registration, web-based training modules, model employment policies, procedures, and forms, a checklist database, as well as access to an extensive library of employment articles and valuable publications.
Follow the following easy steps to enroll and to get the most of the training features:
- Choosing a site administrator: The site administrator is the person who oversees ChubbWorks for your organization and is the first person to register onto the site. He/She has access to the training records for his/her organization and is often someone who works with personnel, personnel legal matters, and/or training matters. The original site administrator may add other site administrators later if there is a need to share this duty.
- Completing registration: The Site Administrator should initiate enrollment to ChubbWorks by visiting www.chubbworks.com. Within the log-in box click on REGISTER. This will prompt you to enter a password, which is your Chubb EPL policy number. Refer to your Insurance Overview or contact your Client Executive for your EPL policy number. Complete the information fields requested and create a personal password for future use.
- Recruiting additional users: Once logged in, the Site Administrator may extend an invitation to employees and volunteers within the organization to enroll in ChubbWorks by opening the Control Panel. Within the Control Panel click on Recruit New Users. Enter the email addresses of each invitee separated by commas. These employees will receive an invitation via email asking them to enroll in ChubbWorks. They can then self-register with the password received within the email, and later create their own personal username and password for future use.
- Using web-based training for supervisory personnel: Once an employee registers for ChubbWorks they are automatically assigned web-based training modules which are due within 30 days. If the Site Administrator wishes to adjust these training dates they may do so within the training section of the Control Panel. All users will receive automatic email reminders regarding the training due including due date.
- Accessing and completing training: Employees can log into ChubbWorks at any time by using their personal username and password. Once logged on, user clicks on Training to bring up a list of training due. He/She then selects the lesson to be taken. Each training module has complete instructions and a link to contact the Trainer if the trainee has any questions. In order to complete a lesson, a trainee must achieve a perfect score on that lesson’s quiz. A trainee is given several chances to change incorrect answers before he/she is directed back to the section of the lesson where the answers can be found. There is no limit on the number of times a trainee can review the lesson; the goal is to understand all the major points before moving on to the next lesson.
- Training records: The Site Administrator(s) has exclusive access to training usage reports, including how many lessons employees have completed. The Site Administrator accesses this information under the Control Panel. Select Reports for an overall view. To check the training records of an individual, go to Users under the Control Panel. Choose Add/Edit Approved Users and click Edit next to the name of the employee and then View Training History. Reports can be exported to Microsoft Excel and printed and/or saved to your hard drive.
If you need assistance, ChubbWorks is ready to respond.
Simply click on the Contact link, which is located in the upper right-hand corner of each page.
Use the contact button for any questions regarding ChubbWorks, and a representative will respond in less than 48 hours.
It is increasingly common for other organizations and/or people (third parties) to request some evidence that the fraternity/sorority or chapter has insurance coverage in place. The form that confirms that coverage is, in fact, in place is called a Certificate of Insurance, and it shows your limits and coverages.
We will need the following information from you in order to provide you with a Certificate of Liability Insurance:
- Fraternity/Sorority and Greek Chapter Name
- Date of the event
- Type of event (i.e. Philanthropic, Social, Chapter-Oriented, etc.)
- Whether or not alcohol is being served (if alcohol is being served, who is serving the alcohol?)
- Name and address of the venue and/or individual requesting the Certificate of Insurance
- The contact information and preferred contact method (i.e. e-mail, fax, etc.) for the individual to whom the Certificate should be sent
- If the venue is requesting Additional Insured status, please forward the contract immediately to us for review.
Please provide all of the above information and any questions you may have by completing the Certificate/Event Request Form.
In addition, it is also very common for you to receive a request from a lendor requesting that you provide evidence that you carry property insurance. Banks often require you to list them as a Mortgagee or Loss Payee on your policy for property for which they provide a loan. Companies from whom you lease equipment, such as a copy machine vendor, also often request proof that you are carrying insurance to cover any damage to their equipment. This document is referred to as the Property Certificate of Insurance.
In order to process your Property Certificate request, please provide us with the following information by completing the Non-Event Specific Certificate of Insurance Form:
- Name and address of the entity/individual requesting the Property Certificate
- Any written documentation, such as a contract, that stipulates your obligation to provide the entity/individual with proof of insurance
- Loan number, if applicable
- E-mail address of the entity/individual requesting the Property Certificate
Engaging in a building or renovation project is an exciting, albeit stressful, endeavor. In addition to the hundreds of decisions regarding design, budget, decorating, and other items, there are insurance and risk management concerns to consider in order to protect the House Corporation and the organization from loss.
In an effort to simplify at least the insurance portion of the building process, we have developed a glossary of sorts to help you familiarize yourself with the associated terminology, as well as our recommended limits when applicable.
General Liability
General liability covers physical and bodily damage for which the general contractor and its employees would be held liable as a result of completed operations or product liability. We recommend that any independent contractors carry a minimum of $1M per occurrence in general liability limits.
Workers’ Compensation
Workers’ compensation is insurance paid by companies to provide benefits to employees who become ill or injured on the job. We recommend that independent contractors carry a minimum of $500,000 per accident.
Automobile Liability
Automobile liability insurance protects the insured against financial loss because of legal liability for automobile-related injuries to others or damage to others’ property by an auto. We recommend that independent contractors carry a minimum of $1M per occurrence in automobile liability limits.
Builders’ Risk
A builders’ risk policy is a property insurance policy that is designed to cover property in the course of construction. Coverage typically applies not only to property at the construction site, but also to property in transit or at off-site storage locations. We use the estimated completed value of the project as the builders’ risk limit.
We recommend that you have an MJ Client Executive review contracts associated with any building projects prior to signing them. We also recommend that the Fraternity/Sorority, House Corporation, Chapter, etc. be indemnified in the contract language from any loss or damage caused by the independent contractor/s. Because of the complexity of these types of issues, we recommend that you engage the services of a local attorney familiar with your local laws and statutes in the contract negotiations.
It’s Back to School time!
Take advantage of the last of the slow summer days and of an empty chapter house to do some Back to School cleaning and organizing.
| Back to School Property Checklist | |
| Date Completed | Item |
| Kitchen | |
| Remove contents of cabinets and clean interiors | |
| Clean appliances (ovens, microwaves, stove tops, etc.) | |
| Organize pantry, discarding expired food | |
| Take stock of kitchen supplies to see what needs to be donated and/or replaced | |
| Dust off refrigerator condenser coil | |
| Formal Rooms | |
| Rotate stacked books to prevent warping | |
| Clean leather furniture and vacuum upholstered furniture | |
| Hire someone to inspect your fireplace and chimney and prepare them for colder weather use | |
| Have carpets cleaned | |
| Throughout House | |
| Wipe baseboards and moldings | |
| Wash all windows | |
| Vacuum blinds and other window coverings | |
| Test smoke and carbon monoxide detectors | |
| Declutter and clean out the attic, if applicable | |
| Clean ceiling-mounted light fixtures | |
| Clean carpets, doormats, and rugs. Replace any summer rags with winter ones. |
| Outside the House | |
| Check weather stripping and caulking around doors and windows; repair and replace as necessary | |
| Check and clean gutters | |
| Clean the patio furniture | |
| Check the exterior paint and touch up as needed | |
| Visually inspect the roof. If necessary, hire someone to replace missing shingles and recaulk as needed. | |
| Additional Reminders | |
| Make sure your House Corporation Inventory Checklist is up-to-date and store in offsite location | |
| Complete the Chapter House Self-Inspection and Recommendations. We recommend you complete the self-inspection on an annual basis. | |
| Check your flood zone to make sure that there have not been any changes in the last year at www.floodsmart.gov. |