Resources Archive - Page 5 of 21

This edition of the MJ Sorority newsletter covers the following topics: property market insurance update, back to school risk management resources, 2024 economic outlook, FAQs, and more.

National fraternities and sororities have been dealing with changing circumstances on many fronts over the
last five years. Part of this changing landscape involves property management and adapting to significant
increases in property claims across the nation. As a result, property owners must prepare for higher property deductibles, due to the increase in the frequency of claims and in the increase in the severity (cost) of claims than in years past.

It is critical to an organization’s sustainability to have adequate short-term cash reserves and liquidity resources
for operational flexibility and for ensuring that organizational commitments are met timely. Beyond short-term cash reserves, fraternities and sororities should also consider building reserves to fund insurance
deductibles as claims are incurred. Such reserves (often designated by the Board of Directors) are funded so
that intermittent claims can be managed without disrupting already tight operating budgets.
In considering building an insurance reserve fund, organizations should consider the following areas:

Understanding the risk landscape (past, present, and future) – collaboration with an organization’s current insurance provider and property managers or housing team members can aid in understanding what claims have been incurred, properties at risk for issues now, and what deferred maintenance issues might be present in the future. Understanding risks by geographic location as it relates to weather and catastrophic events is also helpful in determining how much to reserve and how sustainable that reserve will be over time. If you are unsure of your house corporation’s loss experience, contact your Client Executive at MJ Sorority.
Starting a reserve fund – organizations can formally designate funds (through Board resolution) to function as an insurance reserve that cannot be spent on other purposes. This can formally separate these funds from operating cash and other financial assets and keep reporting and tracking of these funds segregated within the organization’s financial statements. Organizations can also fund a new reserve by designating surplus dollars annually be deposited into an insurance reserve. Creating a one-time assessment charged to members, or charging a new annual fee are also options to establish a reserve fund or continue to fund reserves.
Investing your reserve fund – organizations need to consider where reserve funds will be housed and how they will be invested. Organizations should consider a separate investment policy statement for reserve funds. Keeping reserves in short-term insured bank accounts allows for some return on those funds without taking on market risk. Certificates of deposit or sweep accounts can also be used if they do not lock up all funds for specified periods of time. Depending on the size of the reserve, it might make sense to invest in longer-term opportunities to increase investment return. In all cases, liquid cash will need to be accessible to some degree for those claim deductibles should they occur.
Drawing from your reserve fund – organizations also need to consider how to spend from reserve funds. A policy on spending should be established and should include what constitutes an approved expense, how often reserves can be drawn upon, and what approvals are needed to draw (approvals usually involve Board or Finance Committee approval). Determining a minimum threshold that must be left in the reserve at all times should also be considered.

Blue & Co.’s Not-for-Profit Services Team advises organizations on ways to improve both the balances and the utilization of reserves and liquidity resources to enhance sustainability over time. Please reach out to your local Blue & Co. advisor with any questions regarding these recommendations.

Thanks to our partners at Blue & Co. for this resource.

This edition of the MJ Sorority newsletter covers the following topics: property market insurance update, summer risk management resources, reviewing contract basics, and more.

Review and implement the following steps as needed.

Turn on headlights while in a parking garage (during daytime too) to reduce the risk of an accident and to better see people and other cars.
Park in areas that are well lit.
Refrain from walking in the middle of the lane in a parking garage, do not text while walking, and make use of marked crosswalks.
If walking by yourself, get off your cell phone.
Drivers entering a parking lot keep an eye on a vacant spot and often neglect to watch for other drivers and pedestrians who are on the move.
While backing out of a parking space in a parking garage, blind zones created by vehicles parked alongside the spot obstruct the driver’s vision.
Traffic laws aren’t enforceable in parking lots, which can create reckless driving and confusion.
One thinks that being on the phone is safe because the person on the other line can call 911, but that rarely works out.
Chatting can distract you; it’s better to be aware of your surroundings.
If walking alone, hold your cell phone and be ready to make an emergency call.
Many phones now have a button on the screen to dial 911 immediately.
Go one step further and preset one of the buttons on your phone to call the emergency number.
Look underneath your car before approaching it in a parking garage or lot at night.
If you return to your car and see that a van is parked right next to the driver’s side, enter through the passenger side.
Predators often use vans and will disguise it as a family car, even using “Baby on Board” decals.
If you return to your car and it has a flat tire, back away, return to wherever you came from (restaurant, store, etc), and call for help.
Once assistance arrives, approach your car. If someone comes up to you and wants to offer help, politely say, “No thank you.”
When you are checking in to a hotel room, ask the front desk staff to write your room number down privately so that no one hears what your room is. Your room number should be your business only.
Before entering your hotel room, make sure no one is lingering in the hallway.
Always immediately lock your hotel room door after you enter.
When traveling, do not walk with your map in your hand. It is a dead giveaway that you are a tourist. Therefore, you are an easy target.
If you call for room service, and you get a knock on your door, do not immediately open. Ask: “Who is it?” Make the person on the other side of the door tell you who they are before you open it.
When asking for directions and someone offers to show you the way by having you follow them, do not go. Just ask for them to point you in the right direction.
If someone tries to grab you, twist your arm up and down and yell, “Stop!”
Do anything you can to draw attention to yourself.
If someone is chasing after you, run away in a zig-zag pattern which is known to exhaust attackers.
Before booking a hotel, make sure that guest-room doors have multiple locks, including a deadbolt.
Consider using a valet, or park your car in a well-lit area as close as possible to the hotel lobby.
Before getting out of the car, scan the parking lot for any possible assailants. Lock the car and do not leave any valuables inside.
In high-rise hotels, request a room on the third floor or above.
If hotel personnel mention your room number during check-in or another time during your stay, ask for another room.
Don’t enter an elevator if someone inside seems suspicious.
Don’t open the room door to anyone without verification from the front desk, and do not use your name when answering the phone.
Place all valuables in the in-room safe.
Hang the “do not disturb” sign on the door and leave a light and radio or TV on when leaving.
At night or any time there’s concern about safety, request a hotel staff member to accompany you to your room to inspect it.

Source: ChubbWorks.com

This edition of the monthly MJ Sorority newsletter covers the following topics: building projects, summer closing checklist, chapter house self-inspection form, sprinkler system update, Housing Forum replay with Marlon Gibson, PhD, cybersecurity webinar, what to look for when reviewing a contract FAQ, and more.

This edition of the monthly MJ Sorority newsletter covers the following topics: spring weather resources, important update about sprinkler credit, risky activities, Housing Forum session from Dr. Marlon Gibson, mental heath webinar, FAQ about workers’ compensation, and more.

This edition of the monthly MJ Sorority newsletter covers the following topics: highlights from the 2023 MJ Housing Forum, risk management advice for hail season, cybersecurity prevention, FAQ about passenger vans, and more.

This edition of the monthly MJ Sorority newsletter covers the following topics: winter storm update, winter driving tips, FAQ about volunteer’s insurance recommendations, preventing frozen pipes, preventing slips and falls.

As you enter the summer months there are several things that should be done to ensure the property is protected while vacant:

Completed	Closing Task
	Make sure preparations for any summer projects have been completed and a plan of action is in place.
	Check all rooms and areas of the house to determine if security deposits should be returned or kept to pay for damages. You should refer to the move-in form you used at the start of the year. You should have the tenant sign the form on move-out also.
	Clean all areas of the house and make sure all food has been removed or properly stored. Be sure all trash is removed from the property.
	All hallways should be cleared of debris, clutter, and\or furniture and all fire doors must be closed.
	Thermostats should be set to appropriate levels and hot water heater should set to “pilot” position, but not turned off. The boiler pump switches should be turned off for the summer. Unplug all appliances, open refrigerators and freezers and empty ice makers if they are unplugged.
	Secure and\or store all awards, composites, trophies, and any other valuables.
	The outside of the house should be cleaned, including making sure the gutters are clear (we would recommend a professional who is properly insured). Be especially aware of any combustibles that may be stored against the exterior of the house. This should be properly disposed of.
	Check interior and exterior lighting and all external doors to ensure proper security of the property and set any lighting timers to dusk to dawn setting.
	Ensure that all broken windows have been repaired and are locked and blinds\drapes are closed.
	All shrubbery should be trimmed to prevent easy hiding by anyone who may try to break in to the property. The landscaping should be properly maintained during the summer months.
	The university police and/or local police should be notified whether anyone should be or will be at the property during the summer. Ask them to patrol regularly if possible.
	An alumnus or responsible other party should have a key to access the facility if needed and check on the property at least weekly. Remember to disable resident, chapter members’, and employee key\swipe access and\or collect all keys from them. House corporation representative and\or house director, if applicable, should be the last people to leave the house.
	Discontinue all services not needed during break, including mail, newspapers, food deliveries, garbage, etc.
	Create and distribute list to house corporation members, chapter leadership, house director, if applicable, and headquarters contact the names and contact information for house corporation and chapter leadership, all staff members, important vendors and service providers, and appropriate emergency phone numbers.

Thanks to our business partner, CSL Management, for this resource.

Note: you can easily print this resource to use at your chapter house by clicking printer icon to the right of the resource title at the top of this page.

In order to maintain a positive and supportive environment within sororities, as well as manage the risk of escalation during disagreements, it is essential to establish effective mechanisms for dispute resolution among sorority members.

As the cost and administrative burden of litigation continues to grow, MJ Sorority supports the inclusion of binding arbitration clauses in membership agreements as a fair and efficient form of dispute resolution. Binding arbitration clauses are standard practice in many industries today, and if executed thoughtfully, can benefit both the organization and its members.

What is arbitration?

Arbitration is a formal method of dispute resolution that provides an alternative to traditional litigation. Overseen by a neutral arbitrator or arbitrators, parties to a dispute present evidence, make arguments, and are bound by the arbitrator’s decision, much like the formal litigation process. However, there are some important distinctions between arbitration and litigation. Arbitration is a private process and typically much more efficient. Additionally, parties to an arbitration choose the arbitrator presiding together, or in the case of a tribunal, each choose an arbitrator, who then in conjunction with one another, choose the third arbitrator on the panel.

How do arbitration clauses become relevant during a dispute?

Typically, arbitration clauses are leaned upon when one of the parties to a dispute changes its mind about using the arbitration process and wants to “have their day in court.” The court then looks to the original agreement to determine the validity of the arbitration clause and if the language of the arbitration agreement passes muster, the court will hold the parties to their agreement and send the dispute to a neutral, third-party arbitrator.

This is why arbitration clauses should be presented as part of an organization’s membership agreement, ensuring that there is a clear written record from the moment a member joins the organization.

What are the key components of an arbitration clause?

To ensure that arbitration clauses included in membership agreements are enforceable, a few key components should be present:

Specific language—The agreement should clearly outline what types of disputes will go to arbitration. The agreement must clearly state that signing the agreement means that both parties waive their right to recourse in court.
Meaningful choice—Courts want to ensure that all parties to an agreement have equal bargaining power. New members should be given meaningful opportunity to study and ask questions about their membership agreement, including the arbitration clause.
Notice/Acceptance—When implementing a dispute resolution program using arbitration, the contracting sorority needs to have a written record of putting their existing members on notice of the program, if applicable. Where possible, a sorority should collect assent to an arbitration program from existing members via signature. Inclusion of an arbitration clause in the membership agreement for new members satisfies these concerns.
Confidentiality—While arbitration takes place behind closed-doors, meaning that the proceedings are not open to the public, there must be an additional clear agreement to maintain confidentiality. It’s recommended that membership related offenses be handled internally to maintain the privacy of members and foster trust and openness in the dispute resolution process. Including confidentiality language in the arbitration agreement will bind parties to the to keep the process confidential.

Keeping these components in mind while drafting arbitration clauses will bolster their validity and ensure all parties have clear expectations of the arbitration process.

What are the challenges of binding arbitration? What concerns does MJ Sorority have with arbitration clauses?

When arbitration clauses first came into fashion in the early ‘00s, courts were mostly deferential to such clauses and did not entertain challenges to their validity. In the last 15 years, courts have become much more wary of arbitration clauses, in some cases, finding them unconscionable, meaning that they are held invalid.

Claims of unconscionability, while hard to win, are important to consider when drafting and distributing membership agreements with arbitration clauses.

What is the benefit of arbitration over mediation or traditional litigation?

The arbitration process is private, helping parties avoid potentially lengthy, public, and expensive litigation. Furthermore, unlike in mediation, the arbitration process authorizes a neutral arbitrator to make a decision about the dispute, including the arbitration award, which is then only confirmed by a court. Typically, the arbitration agreement will include language that waives the parties’ right to appeal on substantive grounds in a court of law, limiting costs for all involved.

What is MJ Sorority’s Opinion on arbitration for dispute resolution?

While organizations should examine arbitration laws in each state of chapter operation, binding arbitration clauses are generally recommended to be part of membership agreements. If used, these clauses should be carefully worded to be specific and reasonable to both the contracting member and the organization. Organizations must demonstrate that there is equal bargaining power between the contracting parties and that the language used is specific and unambiguous. Organizations should also put existing members that have not signed an updated membership agreement on notice of an arbitration program’s implementation and collect assent via signature where possible.

Further Information:

Our annual winter weather bulletin with risk management considerations and resources.

This edition of the monthly MJ Sorority newsletter covers the following topics: flu season preparedness, embezzlement risk management and claims trends, string lights FAQ, and preventing kitchen fires.