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Sigma Nu Insurance Program

Updates from Lexington

Top 5 Things You Should Know

There are two primary approaches to sound risk management – loss prevention and loss control. Loss prevention entails efforts and strategies to prevensomething bad from happening, whether it be accidental or intentional. In Sigma Nu terms, loss prevention includes the Fraternity’s risk reduction educational programs and resourcesLoss control is the efforts undertaken to investigate, address, and resolve the issues that result when something occurs that could result in a claim, again whether accidental or intentional. In Sigma Nu terms, loss control includes the work of the Fraternity’s staff team (or outside third parties whose services are retained) to investigate situations and the work of the Fraternity’s insurance and legal team to resolve claims that may arise from those situations. 

The latter is where the Fraternity’s insurance program comes into play. Hopefully, many of you reading this article will not have to work through an insurance claim. However, much like driving safely does not guarantee you will not get into an accident, implementation of sound loss prevention strategies, like conducting events in compliance with the Fraternity’s Risk Reduction Policy, does not guarantee an accident will not occur. Should something happen, the Fraternity’s insurance program is in place to provide coverage for the defense of a claim (subject to policy provisions) and, if applicableprovide funds to resolve the claim 

Here are five things you should know about Sigma Nu’s insurance program: 

  1. Coverage is restricted to events and activities conducted in compliance with the Fraternity’s Risk Reduction Policy and The Law of Sigma Nu Fraternity, Inc.  all insurance policies have certain exclusions that limit coverage. Sigma Nu’s general liability policy includes an exclusion that limits coverage to only events and activities that comply with Fraternity policy and law. If an event or activity violates Fraternity policy and/or lawthe insurance carrier could deny coverage for any claims arising from that event or activity. 

  1. Member Accident Protection Policy (MAPP) – did you know that as a collegiate member in good standing you have access to a no-fault, med-pay policy called MAPP? This means that, if you should have an accident while in college, MAPP can help pay for out-of-pocket expenses associated with that accident (e.g. deductible, co-pay) up to the MAPP policy limit. MAPP does NOT replace the member’s primary health insurance.  

  1. Incident Happens à Report Immediately  even if no injury is immediately diagnosed, if an incident occurs at the chapter facility or at a chapter event, report the matter immediately to the General Fraternity by either calling the main office line at (540) 463-1869 or submitting an Incident Report FormIt is important, to be honest and transparent in reporting what occurred. 

  1. Additional Insured Requests – your chapter is likely to receive a request to add the host institution and/or a vendor associated with a chapter event to the Fraternity’s liability insurance policy. This is a common request. Please forward any such request, along with the contract, relationship statement, or other applicable agreement denoting the insurance requirements, to Fred Dobry, Director of Health and Safety. Note, the contract or agreement should be forwarded to Fred for review PRIOR to signing. 

  1. The national insurance program does not include property insurance or Workers Compensation Coverage  if the chapter facility is owned by an alumni house corporation, they need to understand the need to secure property insurance as such insurance is not included in the Fraternity’s general liability insurance program. Additionally, in situations where the house corporation or chapter has an employee (e.g. live-in advisor, house cook), most states require a minimum amount of Workers Compensation Coverage be in place. This coverage is also not provided through the Fraternity’s general liability insurance program. Holmes Murphy, leading insurance broker for many men’s fraternities, including Sigma Nu, can assist in securing cost-effective options for both policies. 

The above information is provided for informational purposes only and does not replace or supersede the actual insurance contract.  

More detailed information about the Fraternity’s insurance program can be found in the Sigma Nu Insurance and Claim Manual. Holmes Murphy also has a collection of helpful loss prevention and loss control resources on their website. If you should have any questions about the Fraternity’s insurance policies, please feel free to contact Fred Dobry, Director of Health and Safety.  

© 2015-2019 Sigma Nu Fraternity, Inc.
9 North Lewis Street, P.O. Box 1869, Lexington, Virginia 24450
Phone: 540.463.1869 | Fax: 540.463.1669 | Email: headquarters@sigmanu.org

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