Fraternal Property Management Association  

Lessor Liability Program for House Corporations 

  

  

  

Escalating costs of liability insurance and the financial burden placed on all members of Alpha Tau Omega prompted the fraternity, in 2003, to research possible revisions to the insurance contract. The goal was to improve the defense of litigation and control the costs. This lead to the introduction of insurance policy changes beginning on October 1, 2004 that included policy sub-limits of; 

  

□        $100,000 Per Occurrence 

□        $200,000 Aggregate Per Location / Chapter  

(with Defense Costs eroding the limit) 

  

FPMA Lessor Liability Program Application  (MS Word format) 

  

Alpha Tau Omega Lessor Liability Program Flyer  (pdf format)  

  

  

The sub-limit was designed to apply to the following policy insureds; 

  

Fraternity chapters that are chartered and colonies that are recognized by the Named Insured;  

  

House Corporation	Alumni Corporations
Householding Corporations	Alumni Chapters
Chapter Education Foundations	Board of Advisors
House Associations	Board of Governors
Alumni Control Boards	Executive Councils
Alumni Advisory Boards	Parent Clubs
Alumni Associations

  

  

…only while acting within the scope of the Insured's duties and in compliance with the Risk Management Policies of the Named Insured;  

  

Officers	Council Members
Directors	Volunteers
Trustees	Housemothers
Partners	Resident Advisors
Coordinators	Faculty Advisors
Custodians	Fraternity members
Committee Members	Member Candidates (Pledges)

  

  

…of those entities listed above, but only while acting within the scope of the Insured's duties and in compliance with the Risk Management Policies of the Named Insured. 

  

  

Litigation and Cost of Insurance 

  

The Undergraduate Chapter is the customary target of litigation. Alpha Tau Omega often found itself risking the full limits of the liability insurance program to defend an Undergraduate Chapter as an entity with little or no financial assets to protect. Ultimately this has lead to the escalating cost of insurance protection over the past ten years.    

  

The insured parties to which the sub-limit applies also includes House Corporations and their officers and directors.  To date all House Corporations have received liability insurance protection for no additional charge when the Undergraduate Chapter paid its insurance assessment.  Insurance protection, subject to the policy sub-limit, continues to be provided at no cost to all House Corporations. 

  

  

Liability Insurance for Lessor of Property 

  

Alpha Tau Omega understands that many House Corporations own physical plants that are worth significantly more than the limit of insurance coverage currently provided by the policy sub-limit.  

  

For this reason HRH/Kirklin & Co, LLC and Alpha Tau Omega have worked together to develop the Fraternal Property Management Association Liability Insurance Program for Lessors' of Property. This program will provide a secondary line of defense for a House Corporation to defend against possible litigation. 

  

  

Program Specifications 

  

AM Best & Company "A" Rated Insurance Company 

  

Policy Limits: 

  

Each Occurrence	$1,000,000
General Aggregate	$1,000,000
Products/ Completed Operations Aggregate	$1,000,000
Personal/Advertising Injury Limit	$1,000,000
Damage to Premises you Rent	$250,000
Medical Payments	Excluded

  

            

Terms & Conditions of Coverage Summary 

  

□        Protects entity and its officers and directors from claims arising out of Hazing, Sexual Abuse, Molestation, Assault & Battery and Host Liquor Liability so long as no direct involvement in one of these activities 

  

□        Coverage applies to the Designated Premise and operations necessary or incidental to the Designated Premise 

  

□        Request premium quotation to review complete terms & conditions of coverage 

  

Cost of Coverage 

  

Example:  

  

1.      Facility less than 20,000 square feet 

2.      No claim in past 5 years involving House Corporation 

3.      No claim in past 5 years involving Undergraduate Chapter 

  

                        Estimated Annual Cost = $3,076  

  

  

To get started, an interested participant should contact:  

  

HRH/Kirklin & Co., LLC 

P.O. Box 540673 

Omaha, NE 68154 

)  1-800-736-4327 

2   1-800-328-0522  

  

Suzanne Haas, Marketing Assistant 

1-800-736-4327 (extension 203) 

shaas@kirklin.com    

  

Emily Fay, Marketing Assistant 

1-800-736-4327 (extension 217) 

efay@kirklin.com    

  

Ned Kirklin, Managing Director 

1-800-736-4327 (extension 200) 

nkirklin@kirklin.com