The NPC community is working very hard to ensure that their organization represents diverse membership. An important dimension of this effort is the question of whether your chapter house is accessible to members and guests with a disability, be it a physical or a mental condition.

We have heard from several clients who expressed an interested in an accessibility audit, in which their chapter houses could be inspected to see where the facility could be made more accessible.

One question that has arisen is regarding doing the audit for a location and what liability may be created by doing an audit and not addressing the deficiencies identified for accessibility. This question, first off, needs to examine what liability in fact is being imposed upon sorority chapter houses, if any. The natural assumption is that disability accessibility is imposed through the Americans with Disability Acts (ADA). Please review our resource on this topic that illustrates that the ADA does not apply to fraternal organizations (aka sorority chapter housing).

However, there may be some local municipalities that have imposed similar ADA-like regulations which may or may not apply to the sorority chapter houses.

Therefore, with the lack of any applicable regulation(s) there is no liability imposed on the sorority chapter house. In the absence of any liability, if an accessibility audit is completed and for whatever reason any or none of the recommendations are not addressed, there is virtually little or no threat to your organization or the chapter house.

We do believe that there could be liability if there are promises made to a specific member or prospective member for a condition to be addressed, and the chapter ends up being unable to do so, which could potentially result in a contractual liability claim (also referred to as breach of contract).

Should you have additional questions or concerns regarding this subject, feel free to contact your Client Executive.

One of the least understood federal regulations are those included in provisions of the American with Disabilities Act (ADA). This legislation was passed in 1990 to extend the civil rights protection prohibiting discrimination to persons with disabilities.
ADA addresses the three major areas of employment, government services and public accommodations. Title III of the Act specifically
addresses the requirements of a building that is subject to this legislation.

As with most federal regulations, they often times are not accurately used and such is the case with local governments and sometimes universities will use this federal regulation terminology to serve as a big stick in their community to lead others to believe that they must comply with the ADA. They state that certain new codes are ADA required when in fact it is not part of the legislation which deals with those entities that are eligible under the Act.

Before we can even comment on whether this can be an accurate statement, it begs the question of whether women’s fraternity/sorority (sororities) properties are even subject to this legislation. The answer to that question is a resounding no, as sororities are not subject to this Act for a variety of reasons, primarily the fact that sororities are considered “private clubs” and, as such, are not subject to this legislation. Should you desire to read more detail on why a sorority is not subject to ADA, refer to this Fraternal Law article.

Should you have any questions, please don’t hesitate to reach out to your Client Executive.

WHY IS HAIL SUCH A PROBLEM FOR YOUR PROPERTY’S ROOFING?
Hail can cause serious damage to your chapter house’s roof. Hail stones are made up of ice and come in a variety of shapes, sizes, and weights, which can all contribute to the destruction of your roof after a hailstorm. The weight of hail stones is also a factor that should be taken into account when considering hail resistant roofing as an option. Hail stones can cause dents, cracks, and even holes in your roof, which will leave it vulnerable to water damage and increased energy costs.

COSMETIC/AESTHETIC DAMAGE VERSUS PHYSICAL DAMAGE TO THE ACTUAL ROOF
The insurance industry has previously been willing to repair and/or replace roofs damaged by hail that are more cosmetic in nature or to match the entire roof’s shingles with the new replaced shingles due to actual hail damage. It is fair in saying that these days may be over.

There continues to be significant shifts in the weather patterns in certain parts of the US with increased wind and hail claims. The industry is seeing an increase in the storms producing conditions of hail and wind. There is an increase in the severity of the storms, thus bringing worse damage and the expanse of the areas affected are expanding more easterly than the past.

With the significant increase in hail and wind losses, all insurance companies are being forced to more closely analyze or underwrite each property risk and are looking at numerous alternatives to encourage more roof risk management. Examples we have seen across the insurance industry include:
• Significant increases in wind and hail deductibles in the wind/hail prone areas
• Limitations and exclusions to roof damage repair and replacement

IMPACT-RESISTANCE SHINGLES
Hail resistant roofing provides property owners an extra layer of protection against the destructive nature of hail stones, which can cause significant damage to traditional shingles and other roofing materials. It can withstand impacts from hail stones at speeds up to 150 mph, which is far stronger than traditional roofing materials. This extra protection minimizes the need to replace your roof after a hailstorm hits, and an additional advantage of impact-resistance roofing is its energy efficiencies, meaning you could save money on energy bills in the long run.

Unlike traditional roofing materials, impact-resistance shingles are designed to last longer, usually up to fifty years. The costs associated with hail resistant roofing materials will vary based on the resistance rating of the materials. These ratings run from Class 1 (least resistance) to Class 4 (highest resistance). Click here to see the Insurance Institute for Business and Home Safety’s list of shingle performance ratings. Generally, these roofing materials will cost more than the traditional roofing materials, but they also come with the added protection from hailstorms, last longer than traditional roofing shingles, and provide energy efficiencies.

DON’T WAIT FOR A WIND/HAIL CLAIM TO ADDRESS THE CONDITION OF YOUR ROOF
For the property owners in the following states, there has been significant increases in storms attributing to wind and hail claims:

We urge our clients in these states to take additional measures to have a sound risk management plan in place, to upgrade your roofing materials to the impact-resistance shingles when your roof needs to be upgraded, and should you have a claim, consider upgrading to the preferred materials.

ADDITIONAL ROOFING RISK MANAGEMENT
Travelers Insurance Company, who writes your property insurance, has developed an additional resource for you in your roof property management:

This edition of the monthly MJ Sorority newsletter covers the following topics: winter weather preparedness, Greek kitchen design trends webinar, required conditions under the crime policy, cyber security awareness month, and contracts FAQ.

Chubb Insurance, the insurance company who writes your Crime Insurance Coverage, have some basic risk management rules and guidelines for the entities under your organization’s national insurance policy. These conditions are referred to as “required conditions” and list out specific requirements in the financial management to ensure that there is dual control of the financial transactions at all times. Should an embezzlement occur and the dual controls were indeed in place, then the entity would only have to absorb a lower deductible (refer to your Insurance Overview for your organization’s embezzlement limits and deductibles). However, should a claim occur and no dual controls were employed, then the per occurrence deductible would be $150,000 per occurrence.

This requirement by the insurance company hopes to serve two purposes:

Maintaining this coverage is extremely critical for our community comprised of primarily volunteer leadership. Thus, the insurance company has placed required conditions on the policy for insureds to qualify for a lower policy retention (deductible). Required Conditions means the Insured Organizations have utilized, prior to the loss sustained, a professional, third party accounting service* to provide the following controls with respect to any Chapter, Local House Corporation or Local Foundation, which will be verified at the time of loss:

Click here to see claims examples involving embezzlement  that might be useful for determining your various exposures to this type of risk.

We are confident that our clients recognize this risk to financial management and have implemented these required conditions as recommended. Should you have additional questions, please consult with your Client Executive at MJ Sorority.

*We have come to understand that this accounting service is generally being utilized, so it likely will not be a change for your operation. The policy requires the chapters/house corporations/local foundations have a professional, third -party accounting service in place at the time of a loss to qualify for the lower deductible should a loss occur. Examples of this would be an accounting firm or one of the accounting service providers in the fraternal community, such as OmegaFi and Billhighway/GreekBill.

The monthly MJ Sorority Newsletter – This issue covers National Preparedness Month (tips for preparing for weather emergencies), things to consider when planning a risky activity, cyber incidents, tips to minimize fraud, and food service trends for Gen Z.

The 2022 hurricane season risk management bulletin.

The monthly MJ Sorority Newsletter – This issue covers background checks, event planning resources, rising food costs, summer to do lists & more.

The ruling body for fire safety codes is the National Fire Protection Association (NFPA). This entity determines the fire safety codes and is the recognized standard by which all businesses are to follow.

It is the NFPA that sets the codes for the types of sprinkler systems that must be or can be installed in a building primarily based on its occupancy. In 1896, they developed the first code for systems in residential or habitational type occupancies: NFPA 13.

NFPA 13 is designed to serve two distinct purposes:

The building must be 100% sprinklered including attic space whether accessible or not. The costs to install can be substantial for the following reasons:

For a variety of reasons such as cost and labor, NFPA came out with a modified code in the 1970s for residential housing: NFPA 13R (Residential). The main purpose of this risk management tool was purely the protection of lives, unlike NFPA 13 which also was protecting the physical property.

A criterion for the residential housing was that the structure had to be less than four stories in height. As such, the sorority chapter houses did qualify for 13R status, with the only caveat being the attics were not to be used for any purposes and were to have limited access to the attic space.

When the interest for sprinkler systems began to escalate, we were successful in getting the insurance company to provide substantial credits for a property that met the NFPA 13R code. Even though the primary benefit was life safety or the liability exposure, the insurance company agreed to apply this credit to the property premium due to our rationale, which included the following:

Over the years, we have seen an exposure emerge which has become a challenge, which is that the chapter house attics frequently aren’t sprinklered. Of the six property fires over $100,000 in claim cost, four of them started in the attic, which was unsprinklered and had no other type of fire detection system.

The biggest problem comes from the fact that the fire burns for some time in the attic and/or roof area, and it isn’t until it burns through the attic flooring for the debris to land on the next floor before the sprinkler system is engaged and the fire department is alerted. The second problem then comes when the fire department gets there and has to release far more water than normal to extinguish the fire. Subsequently, you have more of your building damaged by the fire and more water damage in trying to put it out.

The liability insurance company underwriters are still very pleased that there is reduced if not completely eliminated bodily injury exposure, but the property underwriters are growing concerned about the exposure of attic fires.

The obvious solution to this dilemma is to install sprinklers in the attic, but this would be virtually impossible for expense reasons. We have done extensive research on this matter and can reach no other conclusion.

We can however recommend another solution to the fire protection alert delay that presently exists which is the installing of a heat sensor to your existing fire alarm system in the attic space. The fire department gets alerted to a fire much faster than without sensors, and there is ultimately less property damage along with the life safety benefit. For further reading on heat sensors, check out these additional resources.

A visual aid to help you determine how to plan safer events. Print-friendly version here.

The monthly MJ Sorority newsletter. This issue covers: increase in cyber incidents, preventing phishing scams, workers’ compensation coverage spotlight, FAQ about MJ approving events, unofficial houses, and two MJ Insurance webinars on data analytics and supply chain challenges.

A quick self-guided presentation reviewing the basics of the MJ Sorority program.