An annual risk management bulletin from MJ Sorority about how best to prepare for tornado season.

In this issue of our monthly newsletter, we cover risky activity reminders for spring events, concerns about vacant properties, some risk management concerns about ChatGPT to be aware of, and we shared a bunch of new resources to prevent water damage at the chapter house.

The MJ Sorority Insurance Program is designed to provide comprehensive coverage to owned property that is currently housing chapter members. Any leased properties must be assessed on a case by case basis to determine coverage eligibility. 

Our current policies presume third party tenants have their own property insurance coverage, which should be recorded in conjunction with the executed lease agreement.  

To assess continued coverage eligibility under the your insurance policy, MJ Sorority needs to have a copy of the current lease agreement attached to the property in question. Reviewing your lease agreement will provide us with the necessary information to determine continued eligibility under the current insurance program. 

In addition to a copy of the Lease Agreement, we will need to determine if the following risk management guidelines are in place: 

Tenant is a single sex organization: ___ Yes ___ No 

Adult employee/supervisor is living on the premises: ___ Yes ___ No 

Open Flames are prohibited ___ Yes ___ No 

Alcohol is prohibited ___ Yes ___ No 

Property Manager hired to oversee property ___ Yes ___ No 

Also, please provide the following information: 

If you have a leased property, please provide your Client Executive with the information requested above.

Water damage poses a significant threat to sorority chapter houses, often resulting in costly repairs, business interruptions, and reputation damage. In this resource, we share tips and strategies to effectively prevent water damage and safeguard the integrity of sorority chapter houses. For a shorter, visual resource, click here.

Domestic plumbing is the primary culprit of water damage. Most claims involve leaking pipes caused by corrosion, pipe burst, or failure. Failure to prevent and control corrosion is the root cause. Unfortunately, most corrosion is internal and is not easily identified. Galvanic corrosion is one of the most common types of corrosion.

Water is invasive and there are some things even the very best insurance coverage can’t replace. When it comes to water, the best protection is risk prevention and it’s more critical than ever. 55% of property claims in the MJ Sorority program are due to water-related issues, from burst water pipes to sewer and drain backups. Given the age of many of our properties, these occurrences are not unexpected. For more information on how and why to install leak protection systems, including a 5% premium credit, please refer to our paper on leak protection.

Therefore, proactive risk prevention measures are paramount, especially in the face of these challenges. Adopting technological solutions can greatly enhance a chapter house’s water protection system. Here are four key types of technology solutions that can be employed:

In addition to technological solutions, implementing a comprehensive preventative maintenance program is essential. Regular inspections by professionals can identify vulnerable areas and minimize downtime, enhancing overall reliability.

Given the persistent challenges posed by water damage, the MJ Sorority Program strongly recommends the adoption of these advanced technologies. Because of the potential damage caused by water leaks in the chapter house, we have negotiated with the property insurance carrier to offer our clients who install leak detection systems with the applicable monitoring functionality a five percent credit to their property premium.

Consider using one of these best-in-class leak detection technology companies:

Other leak detection companies that we have researched include the following:

Failure to address water damage proactively may lead to increased insurance deductibles and further financial strain. As such, property managers are urged to explore and implement these solutions to safeguard their chapter houses effectively.

Winter weather risk management reminders and resources in our winter weather risk management bulletin, including: frozen pipes review and mitigation, webinar with Ryan Protection and Salamander, and other important weather-related information.

Winter can be a harsh season for fire protection systems. Use this checklist from Ryan Fireprotection of best practices for preparing your system for the winter.

In the November 2023 issue of News & Notes, we cover the following topics: Thanksgiving break closing checklist and reminders, minimizing virus outbreaks at the chapter house, kitchen safety reminders and recommendations, and we share a webinar about designing with Gen Zers in mind.

As winter arrives, it is important that we consider the potential of freeze claims, especially during breaks for the upcoming holidays. Preventing frozen pipes is probably the most important consideration over the winter breaks, but closing the chapter house before Thanksgiving and winter breaks involves several additional tasks to ensure that everything is in order and secure. Here’s a checklist we’ve developed to help:

Before break:

During the break:

After returning:

Additional tips:

This edition of the MJ Sorority newsletter covers the following topics: chapter security webinar, winter driving reminders and infographic, preventing check fraud, 2024 economic outlook, FAQs, and more.

We have recently had several claims involving fraudulent checks. Sororities aren’t the only victims. In an alert sent out in February, the Financial Crimes Enforcement Network, also known as FinCEN, reported that, “Despite the declining use of checks in the United States, criminals have been increasingly targeting the U.S. Mail since the COVID-19 pandemic to commit check fraud.” Criminals are becoming increasingly sophisticated in their methods, making it crucial for organizations to stay vigilant. These fraudulent activities encompass a range of tactics, including counterfeit checks, altered payee information, and even identity theft to gain access to legitimate bank accounts. As a result, it is imperative for chapter and house corporation officers and volunteers to be aware of these risks and adopt strategies to mitigate the threat of check fraud. We recommend the following strategies:

This edition of the MJ Sorority newsletter covers the following topics: property market insurance update, building a reserve fund, addressing check fraud , 2024 economic outlook, FAQs, and more.