November 2019: Topics include flu season, electrical devices, electric blankets, & podcast.

October 2018: Topics include winter driving, space heaters, employee safety & hail damage.

March 2018: Topics include hurricanes, mold & smoke detectors.

May 2018: Topics include Habitat for Humanity, campus crime, embezzlement claims, frozen pipes, mental health & employment law.

January 2018: Topics include designated drivers, sober sis programs, heat sensors, insurance basics, & legalization of marijuana in Canada.

June 2017: Topics include flood coverage, non-owned and hired automobile liability coverage, & grills.

March 2017: Topics include attic fires, heat sensors, risk control report & fire pits.

Increasingly, House Directors are expressing interest in keeping a pet in the chapter house. While this can be a perk of employment, it is important for you to consider the potential risks of having an animal, likely a dog, in the chapter house.

Ownership of any pet is a liability exposure. In light of recent claim activity and the corresponding risk management concerns, we ask that that any House Director with a pet secure a tenant’s policy (also referred to as “renter’s policy”) with a minimum liability limit of $500,000.  In addition to requiring this tenant’s insurance, we recommend that the managing House Corporation require proof of insurance with a minimum liability limit of $500,000 from the House Director before allowing the House Director to have a pet on the premises. 

We strongly discourage House Corporations from allowing the House Director to own or care for any of the following: 

In an increasingly litigious society, the number of dog bite claims has risen 48% over the last decade, with the total cost of claims reaching nearly $1.6 billion. This exposure is particularly concerning and it is crucial that any approved pet for a House Director or other animals in the chapter house (see our ESA article) not have a history of biting.

If your house corporation has any questions or concerns regarding house director pets or any other animals in the chapter house, please contact your Client Executive for more information.

Whether or not to quarantine sick members or employees at the chapter house is up to each individual chapter and house corporation to decide based on their organization’s guidance, their campus and local health department guidance, and the structure and layout of their individual facilities.

Many of our clients are feverishly preparing for their members to return to campus, both resident and non-resident. We can only imagine the stress and anxiety that you are facing as you navigate the opening of your chapter house. We appreciate you and your leadership as you face this challenge, you need to be confident in knowing that your organization has secured a comprehensive insurance policy to cover the entities and your exposure to liability. 

As we have urged, we are confident that you will implement the COVID-19 CDC guidelines, you will have trained your staff on the procedures, and you will have educated all your collegiate members on the safety guidelines. Having done so and doing your best to get compliance, your liability will be significantly reduced. The standard is “what a prudent and reasonable person would do.”

During these chaotic times, the comprehensive insurance coverage that your organization has purchased hopefully gives you the freedom to make the best business decisions for your chapter or house corporation.

Safety measures are being implemented for not only your collegiate members, but just as importantly, for your employees. We recently had a question that we wanted to address for reference. The question was what should be done if the house director becomes ill with the COVID-19 virus. 

Below are some points to consider:

As always, please do not hesitate to contact your Client Executive should you have additional questions or need further guidance.

As a house corporation volunteer, you are in the midst of reviewing the impact of the COVID-19 virus on the chapter operations and the possibility/probability of your college or university being opened this fall academic semester and what that would look like. We have come to understand that each and every campus will be deciding the best option for its students and that the sorority chapters will undoubtedly have to follow their lead.

Thus, we think that this is a good time to make a connection with the appropriate university personnel who can help you also navigate this matter more effectively. As a means of trying to establish a relationship/partnership with the university, we are suggesting some basic questions that you may want to consider asking to get a sense of where the university is currently thinking which may ultimately help you gauge your direction. As a private organization, you will have the choice to make the decisions that work best for your house corporation and the chapter but sharing information can also be of some assistance in this very challenging matter.

Whom to contact at the university will vary by university, but we have seen many universities designated a COVID-19 taskforce. We recommend asking to speak to someone on the taskforce, if applicable. If that is not possible, the office of the Dean of Residential Life would be a great resource to connect with now, as well. 

With the situation changing so frequently, please be sure you are reviewing the most updated version of this document and, as always, check with your national organization before taking any of these recommendations.

Whether or not to quarantine sick members at the chapter house is up to each individual chapter and house corporation to decide based on their organization’s guidance, their campus and local health department guidance, and the structure and layout of their individual facilities.

We have created some questions to consider in making the decision whether or not to quarantine sick individuals at the chapter house:

Legal liability exists when:

What actions during the COVID-19 crisis could possibly lead to the insured (chapter and/or house corporation) being found legally liable for an injury from the virus? Before we lay out some examples it is always important to remember that society and the courts generally only require that a person or entity act “as a reasonable and prudent person” and using their best, and most informed, judgement act accordingly. 

Examples might be:

There are numerous other scenarios; however, the major point is that there will be advice from experts like the CDC on how to follow health and prevention guidelines to keep your chapter house safe from spreading COVID-19. The key is to follow the health and prevention guidelines, educate your employees and members on these guidelines, and put measures in place to ensure their compliance of these guidelines.  Should someone get injured or ill and allege they did so on your property, you will be able to confidently defend your position by having followed these best practices.

This letter was created for clients to proactively answer frequently asked insurance questions for parents and members before the questions arise throughout the course of a member’s collegiate experience.

Please feel free to use this template and edit it as you see fit. You will notice [bracketed] sections where we encourage you to insert your organization and/or chapter name to tailor this language to your specific needs.

Should you have any questions, as always, please do not hesitate to contact us.

Re: [Fraternity’s] National Insurance Program

To The Parents of [Chapter Member’s Name]:

The Independent Insurance Agents of America estimate that 100,000 property claims occur on college campuses annually. While on a college campus, your young adult will be responsible for the personal property or personal possessions they have at school. They also are liable for their actions that cause damage to others’ property and/or any bodily injury they cause to another person.

If your family has a standard homeowner’s insurance policy or a renter’s insurance policy, it is likely that the exposures to your young adult will be covered under that policy while they are away at college. However, we recommend that chapter members and their families verify that their homeowners policy extend to a student’s personal property while away at college.

For that reason, we believe that it is our responsibility to communicate to the chapter members and their parents the specifics of the Sorority’s insurance coverage.

Property and Liability Coverage

Each House Corporation has a contract with the resident members that defines the relationship and obligation of both parties to the arrangement. The agreement explicitly states that the House Corporation is not responsible for any loss or damage to a resident member’s personal property, including their personal automobiles. Personal property includes members’ laptops, personal items, and any other property that they bring into the chapter house. Similarly to any other rental arrangement, the resident is responsible for insuring their own personal property, either via their parent’s homeowners policy or via a renters’ policy. The fraternity’s property coverage covers the Fraternity’s property, for example the furniture and kitchen equipment owned by the Housing Corporation at the chapter house.

Parents’ Homeowner’s Policy

It is the responsibility of the resident member to make sure that their personal property is protected while living in the chapter house. Many chapter members’ property would still be covered under their parent’s homeowners policy; however, we recommend that chapter members and their families verify that their homeowners policy extends to a student’s personal property while away at college.

We have reviewed the industry-standard insurance language for homeowner’s policies in hopes of providing resident members with the information necessary to ensure that their personal property is adequately protected. The standard homeowner’s policy language defines an insured as:

Most resident members would fit into one or both of the definitions above, but there are further issues to consider when ensuring your personal property is protected:

Student Renter’s Insurance

If you would prefer not to rely on a parent’s renter’s or homeowner’s insurance, we highly encourage you or your daughter to purchase student renter’s insurance, which will cover her personal property and personal liability. For example, National Student Services offers $10,000 worth of coverage with a $50 deductible for about $300 in annual premium. Grad Guard offers a comparable program. If you or your daughter purchases a student renter’s policy, we recommend that you confirm that the following perils are covered: theft, fire, flood, and wind. In addition, some of the most common causes of loss to a laptop include drops and damage from liquids being spilled into the laptop, so it is important to verify whether or not those types of claims would be covered.

Personal Liability Coverage

The organization’s liability insurance does not cover personal or bodily injury to your daughter in much the same way that your homeowner’s policy does not provide medical coverage for members of your household. If your daughter is injured at the chapter house or at a chapter event, she will need to rely on her (or your) personal medical policy. This may also be spelled out in the membership and housing agreements that she has signed.

[Sorority name’s] policy will provide liability coverage for your daughter’s personal actions within the course and scope of her membership obligations, but not outside. Your daughter’s organization has purchased the broadest coverage possible to protect your daughter should she be named in a lawsuit due to her affiliation with [sorority name], so long as she is following the guidelines of the organization. The liability insurance is third-party coverage, meaning that it protects the insureds (the Sorority, House Corporation, Chapter, Members, Volunteers, etc.) should they be named in a lawsuit from a third-party who has either been hurt or had their property damaged.

Personal Automobile Insurance

If your daughter takes her car to school, your automobile policy will continue to cover her personal automobile while she is away at school. If she does not take a car with her to school, you will want to ensure that she is still listed as a driver under your automobile policy if she plans to drive any automobile while away at school. Several insurance companies offer “student away at school” discounts for this type of coverage, so be sure to check with your insurance agent before she leaves for college. MJ recommends that drivers, for their own financial health, carry at least $300,000 of automobile coverage, not merely the minimum coverage required by your state.

If your daughter drives her personal automobile on Sorority business and is involved in an accident, she will not be covered by [sorority’s name] automobile liability policy.  Liability follows the owner of the car; thus her personal liability would be covered by her personal automobile policy. The organization’s automobile liability policy exists to protect the organization if it is named in a lawsuit involving an automobile, not individuals. For more information about the automobile coverage, please refer to the Digging Deeper: Non-Owned Automobile document on MJ’s website.

For many chapter members, college is the first opportunity for them to live on their own away from home. It is important that chapter members and their families take the necessary steps to ensure that their personal property, which can often be very expensive, is financially protected via insurance. If you are interested in studying the organization’s insurance program further, we recommend you review the expansive Insurance Summary on MJ’s website. We realize that this can be a confusing issue, so please do not hesitate to contact us with any questions or concerns.

Officer Liability

There is no debate that all students on campus will be expected to continue to follow the rules that universities and fraternal organizations put in place to ensure the health and safety of the students, faculty, and community.

It also goes without saying that the sorority officers of the chapter will have more responsibility to help lead this effort. With increased responsibilities comes greater liability to act as a “reasonable and prudent person” would do in a similar situation. If your daughter is a chapter officer, she has been and continues to be covered under the [Sorority’s] national insurance policy. We remain confident that your daughter would see her organization’s policy step up to defend her should she be named in a lawsuit and pay for a judgement should she be found negligible in her duties as an officer. You can be confident in the comprehensive national insurance policy that your daughter’s organization has secured for their exposures to risk.

Sincerely,

Kit Clark Moorman
Director of Risk Management Education
MJ Sorority

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