Difference Between Risk Management and Insurance
Taken from Denny Stewart-Chapter Director for BetaGamma
FIPG
• • • • Forget It People Go home
Do we need Insurance and why?
Yes
• Fraternities have a questionable reputation • We live in a very litigious society • People are less willing to accept responsibility for their own actions • Your chapter house represents a financial target
Insurance
• This is when most fraternities analyze when things went wrong • Simple • Limited benefit to fraternity or member involved
Risk Management
• This is when most fraternities should analyze what could go wrong. • Difficult • Major benefit to fraternity and members. • You have discretionary time!!
Why functions are raided
• • • • • • Noise Parking problems Trespassing on people’s property Littering Public Urination Obvious underage drinking!!
What can we do?
•Cancel all parties
Risk Management at Functions
• Have a guest list-eliminates strangers/thefts/loss of control • Do everything possible to limit your personal and fraternal liability • Remember the six reasons why police raid functions and take steps to eliminate these reasons
VERY IMPORTANT
• Remember that you are not only responsible for the well being of your members and guests; you may be held responsible for their ACTIONS as well!!
Remember
• If you have willful and intentional acts to not follow the FIPG guidelines you WILL NOT BE COVERED!! • The guidelines are for your protection; not to prevent you from having a Good Time!
What do you get?
• Protection in civil and criminal lawsuits • The Member Accident Protection Program
What does it do?
• Pays the first $500 of covered medical expense incurred without regard to whether or not other coverage is available • If you have no other insurance, then this becomes the primary coverage
In order to use the insurance
• Members and pledges must be registered on the roster with the Executive Office • Must pay your insurance that is due November 1 of each year