Q. What insurance is provided through the National Fraternity for the charge to each chapter based on the number of members on the chapter’s roll?
A. General liability insurance is provided. This includes $1,000,000 primary liability ($2,000,000 aggregate) and $5,000,000 excess umbrella. Directors’ and officers’ liability coverage is also included up to $2,000,000.
The insurance program also includes the Member Accident Protection Policy (MAPP). This program offers an accident medical expense limit of $100,000, accidental death benefit of $5,000 and an accidental dismemberment benefit of $5,000. It provides these benefits to full-time students who are active members or candidates for membership. These individuals must be full-time students at the college/university where their chapter is located and a member in good standing with the Fraternity. MAPP provides coverage excess of any medical or health policy that is available to the member or candidate for membership. It will, however, provide primary coverage if health or medical insurance is not in force on the date of loss.
Q. What is the name and contact information of the insurance company that provides our chapter’s insurance?
A. Landmark American Insurance Company provides the primary liability insurance and the directors’ and officers’ liability coverage. RSUI provides the excess umbrella.
Q. Does the Fraternity provide property insurance from these charges?
A. No. Property insurance can be purchased separately by the chapter through Willis.
The Omaha office of Willis is able to provide FPMA Property Policy quotes. Please contact the Willis office at 1-800-736-4327.
Q. What is directors’ and officers’ liability coverage and what does it cover?
A. Phi Kappa Tau’s national insurance program offers directors’ and officers’ coverage to all undergraduate chapters, House Corporations, alumni associations and Chapter Education Foundations.
Directors’ and officers’ coverage protects all directors, officers, volunteers and the entity for claims arising from failure or negligence in carrying out your fiduciary duties of diligence, obedience and loyalty to the organization. Claims covered under a directors and officers liability contract are claims for financial injury and not bodily injury or property damage of a third party that are insured by the general liability coverage of the Fraternity.
In addition, the Fraternity’s directors’ and officers’ liability coverage provides employment practices liability coverage for claims arising from allegations of discrimination, harassment or wrongful termination in an employer/employee relationship. These claims are not insured by the general liability or workers’ compensation coverage of the chapter/alumni and volunteer corporations.
Q. Who is covered by the general liability?
A. The general liability is extended to a large number of entities and individuals as is outlined below:
Who is covered?
The insurance coverage will pay claims up to $6,000,000 per occurrence and $7,000,000 aggregate for the following organizations and/or people:
- The local undergraduate chapter that is chartered and recognized by the Fraternity when it obeys the laws of the institution, city, county, state and country in which it operates and the policies of Phi Kappa Tau Fraternity.
- Undergraduate chapter officers, executive committee, committee chairman and members while performing the duties of elected or appointed positions within the organization.
- House Corporations, House-holding Corporations, Chapter Education Foundations, house associations, alumni control boards, alumni advisory boards, alumni associations, alumni corporations, alumni chapters, board of advisors, Board of Governors, executive councils and parent clubs, but only while acting within the scope of their duties on behalf of Phi Kappa Tau Fraternity.
- Officers, directors, trustees, partners, coordinators, custodians, committee members, council members, volunteers, housemothers, resident advisors, faculty advisors, Fraternity members, associate members and employees, but only while acting within the scope of their duties on behalf of Phi Kappa Tau Fraternity.
Who is not covered by this policy?
- Any individual member, alumnus, trustee or advisor who is performing tasks outside of his responsibility (i.e., spontaneous social function planned by an individual member, chapter advisor consuming alcohol with undergraduates, hazing of members, etc).
- Any member whose illegal or intentional actions result in property damage or death or injury to an individual.
- Members’ parents or family members and guests of chapter members.
- College/University administration (see adding additional insureds below).
Q. Who is covered by the directors’ and officers’ liability? Are Board of Governors members covered?
A. See the fourth answer above. Board of Governors members are covered under the directors’ & officers’ liability policy.
Q. Does the general liability insurance cover accidents on the property, such as someone slipping and falling, or is this covered by the property insurance?
A. Most likely, yes. For negligence (not intentional acts), the general liability policy responds in situations where a third party alleges they sustained bodily injury, property damage or personal injury arising from the negligence of the Fraternity or any other insured entity under the policy. The liability insurance carrier will conduct a claim investigation and determine whether the bodily injury, property damage or personal injury actually resulted due to the negligence of the Fraternity or an insured entity/member under the policy, adjust the claim accordingly, and settle it. Therefore, if a third party slips and falls on the chapter facility premises, the general liability insurance carrier will conduct an investigation, determine whether Phi Kappa Tau is legally liable for the injuries, and move forward accordingly. In the case where someone is injured, it is best to notify the Executive Offices as soon as possible.
Q. Does the general liability policy cover intentional or illegal acts?
A. No. The general liability policy typically does not provide coverage for intentional or illegal acts as they are generally excluded in the policy. Further, the policy does not provide coverage for any individual who is directly involved, or directs others who are directly involved, in an act that is excluded under the policy. This includes hazing, assault and battery, sexual assault, etc. In other words, the policy excludes coverage for the perpetrators involved in such acts.
Q. Does the general liability cover breaches of contract?
A. In most situations, breach of contract is not covered. However, under certain circumstances, the liability coverage of Phi Kappa Tau Fraternity’s insurance contract is extended to protect other parties with whom a Phi Kappa Tau chapter may enter into a contractual agreement. No contract should be signed by any entity/chapter of the Fraternity without complete understanding of liabilities being assumed and insurance coverage, if any, that is provided. When any questions arise, please contact your chapter advisor or the Executive Offices.
Example: In a case where an unauthorized officer of the chapter signed a contract for catering services, the chapter and insurance company was held liable for payment to the vendor when the contract was not competed by the chapter. It is important that all contracts and agreements are reviewed by the BOG and that only authorized officers sign contracts.
Q. What is special events coverage and when should a chapter buy this separate insurance?
A. Special events liability policies can be obtained in situations where the National Fraternity decides an event should not expose the whole Fraternity to liability, particularly if it is a large fundraiser with several nonmember attendees. If you are planning a special event, please notify the Executive Offices to discuss the details. It may be necessary to purchase a special events policy, which provides liability coverage specifically for the described event. For a quote, please contact the Willis office at 1-800-736-4327.
Q. What is workers’ compensation insurance and when does a chapter need to buy it?
A. Workers’ compensation insurance provides medical and other related benefits for employees who sustain an injury through the course of their employment. The applicable insurance company adjusts and pays benefits that are established by each individual state.
The insurance program of Phi Kappa Tau does not provide workers’ compensation coverage for chapter employees. It is the duty of each House Corporation to make certain they are familiar with their state laws and requirements for workers’ compensation coverage for chapter employees.
Q. What is an “additional insured” and when should a chapter ask the insurance company to add an additional insured? What is the cost of adding an additional insured?
A. An additional insured is an individual or entity that is specifically listed on the general liability policy that has been approved by the Executive Offices. Additional insured status provides protection for the additional insured in situations where they are brought into a claim or named in a lawsuit as a result of the Fraternity’s negligence.
A chapter should only request that an individual or entity be included as an additional insured when asked to do so. A copy of the contract associated with this request should be forwarded to the applicable Fraternity contact who will forward it to Willis for review.
There is no cost to include an individual or entity as an additional insured.
Q. Do any of these policies cover malpractice by a volunteer alumnus who is providing free professional advice such as legal, accounting, engineering, architectural, etc.?
A. The insurance program of Phi Kappa Tau is not designed to provide coverage for malpractice by volunteers offering free professional services. Instead, the volunteer should check his own professional liability policy or homeowner liability policy as coverage may be potentially extended to these volunteers if a claim or lawsuit is brought against them. If a House Corporation or chapter sustains some sort of ensuing damage resulting from this malpractice, the situation’s circumstances will need to be investigated to determine whether coverage would potentially apply under the insurance program of Phi Kappa Tau or a House Corporation’s property policy.