On the Frontlines: Insurance Basics and Trends for House Directors
- 1. OntheFrontlines: HouseDirectors A PRESENTATION DEVELOPED BY MJ SORORITY
- 2. OntheFrontlines Why "on the frontlines?" The House Director is the key person who oversees the facility and operations of the chapter house. The House Director is responsible for the safety of the employees and the members of the fraternity. MJ SORORITY
- 4. Some Examples of risk management techniques Eliminating the risk >> no alcohol allowed at chapter properties Minimize or reduce the risk >> using contract language to clarify who is responsible for what Transfer the risk >> holding events at a third As a last resort, we use insurance to protect our clients from economic loss
- 6. MJ SORORITY Provided when House Directors are acting: on behalf of your employer within the scope of your duties and responsibilities as an ¡°agent¡± of the organization as a ¡°good Samaritan Howtheinsuranceprogramworksfor HouseDirectors:GeneralLiability
- 7. MJ SORORITY YOUR personal automobile insurance defends you if you are named in a lawsuit from an accident you caused. If the Sorority/ sorority is named in a lawsuit, the national insurance program would step in to defend the entities/ individuals named. Howtheinsuranceprogramworksfor HouseDirectors:AutomobileLiability
- 8. MJ SORORITY Statutory coverage applies for work-related injuries sustained by an employee. Policy benefits include: medical expense, disability income, rehabilitation, and death benefits. Howtheinsuranceprogramworksfor HouseDirectors:Workers'Compensation
- 9. MJ SORORITY You will need to purchase a tenant or renter¡¯s insurance policy to cover your personal property. *You should be able to purchase a renter's policy inexpensively from the same insurance carrier where you purchase your car insurance. Howtheinsuranceprogramworksfor HouseDirectors:Property
- 10. A Tenant/Renter policy covers: Your personal furniture Your clothes and jewelry The electronics that you own Etc...
- 12. MJ SORORITY
- 13. MJ SORORITY
- 14. MJ SORORITY WORKERS' COMPENSATION CLAIMS BREAKDOWN BY TYPE OF INJURY AND TYPE OF EMPLOYEE
- 15. PROPERTY TRENDS Deferred maintenance - make sure you're keeping up with routine maintenance Increased frequency of attic fires - need for heat detectors/sensors! See our website for additional information. Securing Certificates of Insurance from contractors that do work on property Schedule and complete the Chapter House Self-Inspection Form - available via mjsorority.com
- 16. LIABILITY TRENDS 15% increase in incidents 68% increase in incidents involving collegiate members as the injured party Alcohol is involved in 20% of the incidents, but accounts for 60% of the dollars spent on the claims Injuries are more severe in nature?
- 17. BOND TRENDS Increase in frequency and severity of embezzlement claims Crime Best Practices resource - claims examples and recommendations (available at mjsorority.com) Compulsory Controls
- 18. MJ SORORITY No fewer than two house corporation board members serve at any one time; Documented budget approval process to include house corporation board review; Semi Annual balance ?sheet and income statement review process to include multiple house corporation members; That Insured¡¯s procurement activity or authorization to sign contracts is at all times monitored such that no single individual has the ability to make purchases of greater than $5,000; That Insured¡¯s payments, (check or otherwise ) greater than $1,000 are at all times made under full dual control; At all times that Insured has all checks issued for over ?$1,000 signed by two authorized signatories; if not available or realistic then the paper trail must illustrate two individuals approving the expenditure At least once a month that Insured¡¯s cash in hand and petty cash is counted and reconciled by a board member other than the board member regularly responsible for managing or looking after cash in hand or petty cash; At least once a month that Insured carries out bank and credit card account reconciliation by a board member other than the board member who is not the regularly authorized signatory; New vendors or any change in existing vendor will be approved by two house corporation board members COMPULSORY CONTROLS REQUIRED FOR HOUSE CORPORATION FINANCES
- 19. EMPLOYMENT PRACTICES LIABILITY TRENDS Make sure employees are following job descriptions - contact us for examples
- 21. What To Do In the Event of a ClaimIn the event of a Property claim: Do whatever is necessary to prevent further damage from occurring. Call or e-mail Heather Cox at MJ as soon as possible, even if you believe the claim will be less than the deductible In the event of Injury to Members or to the Public: Make no statements accepting blame. Treat any potential or actual claim or lawsuit as a high priority item and immediately notify your organization Headquarters and MJ. Call or e-mail Heather Cox at MJ Insurance with names, date of loss, and details of incident. In the event of Injuries to Employees: Call or e-mail Heather Cox at MJ Insurance with name of employee, date of loss, and what happened. The employer must fill out an "Employer's First Report of Injury Form." This form must be filed within five days of the injury in most states. This form is available at www.mjsorority.com. More resources at www.mjsorority.com heather.cox@mjsorority.com 317.805-7598
- 22. mjsorority.com Present to your employees at your leisure. English and Spanish versions available. MJ SORORITY employeesafetybasicswebinar