While we hate to think of an accident occurring at one of our alumni functions, we all know that it’s best to be prepared.
Each year, the Order purchases a General Liability Insurance policy which covers all active and alumni chapters, House Corporation members, Alumni Advisory Committee members, Province Commanders, Councilors and National Staff members while acting on behalf of their chapter or the Order.
This means that officers and members of your alumni chapter, while acting on behalf of the chapter or at chapter events, are included in the Order’s General Liability Policy Coverage. The underwriter and details of the policy change often, so please feel free to call the National Office if you need details about our policy. For now, we will simply offer a summary of the Order’s experience in and concern for this area.
A Brief History
The 1980’s saw a rapid increase in the number of lawsuits filed in our nation’s courts. Driven by the prospect of a life of leisure made possible by large cash awards, anybody sued everybody for anything. As well, Congress changed the legal age to consume alcoholic beverages to 21, making three-quarters of all college students unable to legally consume alcohol.
The track record of insurance claims, lawsuits, and the like for college-age men and women was dismal; fraternities and sororities were ranked by the National Association of Insurance Commissioners as the sixth worst risk for insurance companies - just behind hazardous waste disposal companies and asbestos contractors.
To top it off, Kappa Alpha became the fraternity with the single largest claim in the history of fraternities. In the II early 1980’s the Order was involved in a lawsuit in Texas which eventually settled for $21 million, a portion of which Kappa Alpha was responsible for. If that case were settled for the same amount today, the settlement would far exceed our policy limits.
As you can imagine, in that environment finding coverage became difficult, at best, and very expensive. For example, in 1982 each undergraduate member paid $7 to purchase a $5,000,000 General Liability Policy. In the 1995-96 academic year, each undergraduate paid $70, in 2002-2003 each paid $140.
