Basic Insurance Information
The following terms and information will help you understand how the RMF insurance coverage works for you and your chapter:
This coverage, often referred to as general or public liability, provides insurance protection against bodily injury and property damage claims brought against the insured by third parties or members of the public. The basis of such claims is an allegation of negligence against one or more of the insureds which has resulted in damages to a third party. If a claim or lawsuit is filed against the insureds, the insurance company has both the right to settle and a duty to defend the insureds against the claim or suit.
Please read carefully as Exclusions change the terms of the policy. The RMF program has four key exclusions related to "bad actors" who are not living up to the values of the organization. Most notable is the Exclusion for violations of the Fraternity Alcohol or Drug Policy:
"No insurance coverage afforded by the policy shall apply to any "Chapter", "Colony", or "Undergraduate Officers' for any cliam arising out of, in any way related to, or in any way resulting from a violation of "Fraternity Alcohol or Drug Policy".
The General Liability policy also has Exclusions for hazing, sexual misconduct, and assault/battery (fights).
This coverage provides insurance protection for directors, officers, volunteers, employees, and for the organization. The basis for such claims is an allegation of “wrongful acts” against the insureds individually or the organization. “Wrongful acts” means any actual or alleged act, error, omission, misstatement, misleading statement, neglect or breach of duty by the directors, officers, or the organization in the discharge of their duties. If a claim or lawsuit is filed against the insured, the insurance company has the right to settle and provide coverage to defend the insureds against the claim or suit.
This coverage provides insurance protection against direct physical loss or damage to property owned by the Fraternity. Coverage extends to buildings and its contents, including EDP equipment and fine arts, loss of income, and extra expense. Replacement cost protection is provided for buildings and contents. Actual loss sustained protection is provided for loss of income and extra expense. Fine arts such as silver, jewelry, paintings and items of rarity or historical nature are protected for market value, without requirements for schedules or specific valuations. Building codes or law and ordinance coverage provides insurance protection for the costs of compliance within such areas as A.D.A., life safety codes or sprinkler ordinances, when they are triggered by insured losses.
For Fraternity owned property, this coverage provides insurance protection for the types of property and against the kinds of losses not covered by property insurance. Boilers, heating, refrigeration or air conditioning systems, computers, and virtually all other forms of electrical or mechanical equipment breakdown are protected. Common causes of losses are explosion, burning or cracking, motor burnouts, electrical damage, power overloads, food spoilage, and mechanical breakdowns from centrifugal force or metal fatigue. 80% of all claims are from electrical or air conditioning equipment. As with the property coverage, replacement cost, including building codes or law and ordinance coverage, loss of income and extra expense protection are also provided.
This coverage provides insurance protection on behalf of the insureds against loss of money, securities, or other property, due to the fraudulent or dishonest acts of employees or volunteers. Dishonest acts may be committed by any person while acting alone or in collusion with others. Dishonest acts must exhibit the intent to cause the insureds loss or to obtain financial benefit for themselves or others.
This coverage provides additional limits of insurance protection in excess of your commercial general liability and hired and non-owned automobile liability coverages. It protects against the insureds’ exposures to catastrophe or types of losses such as freak injuries, auto crashes, fires, or other accidents that no one thought could happen or for which they felt they could not possibly be held accountable. It pays those insured losses that exceed the limits of the commercial general liability or automobile coverages, up to the separate additional limits of coverage under the excess umbrella policy.
This coverage provides insurance protection against accidental death for persons traveling on behalf of the Fraternity. Coverage for loss of limbs, speech, hearing or sight is also provided. Protection is provided only for business travel on behalf of the Fraternity. Travel must be directed by or with the knowledge and approval of the Fraternity board, a board member, or the Fraternity headquarters. This coverage does not apply to travel for events at the local chapter or house corporation level.
This coverage provides insurance protection against bodily injury and property damage claims brought against the insureds by third parties or members of the public. The basis of such claims is an allegation of negligence with respect to the ownership or use of a covered automobile, which has resulted in damages to the third party. If a claim or lawsuit is filed against the insureds, the insurance company has the right to settle and a duty to defend the insureds against the claim or suit. This coverage does not provide or replace anyone’s personal automobile insurance. In most states, the insurance of the automobile operator or owner will be primary.
For Fraternity owned property, this coverage provides insurance protection against specific types of potentially large or catastrophic losses such as earthquake and flood. Coverage is subject to separate annual aggregate limits for earthquake and flood. For its specific perils, this insurance coverage provides the same type of protection as the property and equipment breakdown insurance coverages. Due to the wide variation in these types of exposures, only specific locations are protected.