Fraternity House Insurance Michigan Policy Information
Fraternity House Insurance Michigan. Many male college students could not imagine college life without membership in a fraternity house. These student organizations, classified as tax-exempt social and recreational clubs, serve a multitude of different functions.
Fraternities are clubs or organizations that provide social and/or lodging facilities for male college and university students. Some fraternities are national in scope, while others are local.
National organizations generally have a board of directors whose members are alumni of the fraternity. The board may set up a foundation to provide scholarships for undergraduate members, but the national organization runs these. Fund-raising activities may be conducted at the national or the local level.
Fraternity houses may provide recreational facilities for members. Recruiting new members is done through a process called rushing, in which prospects attend social events and are interviewed by existing members, who then vote on whether to admit the prospect as a member.
Most fraternities give preferential consideration for membership to prospects whose father or brother has also been a member. Once approved for membership, the prospect goes through a trial period before his initiation into the fraternity. Membership in a fraternity can be expensive.
In addition to national and chapter dues, there may be an initiation fee, room and board charges, expenses of social and philanthropic events, and fines for infractions of rules.
Fraternities have been in the news for supporting an environment that encourages alcohol abuse. The misuse of alcohol combined with an atmosphere of brotherhood and male dominance has, in some recently publicized cases, resulted in predatory sexual behavior against female students.
An emerging issue is whether fraternities should be limited to males only or open to female or transgender students.
Fraternity houses allow students to immediately begin forming social bonds as they enjoy a range of events, but they also engage in charitable activities and foster academic excellence.
Because members of a fraternity chapter typically live together within the same fraternity house that's home to large-scale parties, it is not difficult to imagine the risks these venues can face.
Although fraternity houses often have access to impressive budgets, unforeseen - and disastrous - events do pose a significant threat to the financial future of any fraternity house.
That is why frats need to be armed with the right fraternity house insurance Michigan coverage. What types of insurance do MI fraternity houses need to invest in? Find out more in this brief guide.
Fraternity house insurance Michigan protects your Greek organization from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Why Do Michigan Fraternity Houses Need Insurance?
Fraternity houses have complex risk profiles. In other words, the odds that something will, at some point, go wrong are extremely high. Although fraternity houses may be able to deal with the costs of minor perils on their own, more extensive accidents and incidents can have devastating financial consequences.
Whether the organization is Alpha Epsilon Pi, Alpha Phi Alpha, Alpha Tau Omega, Beta Theta Pi, Delta Chi, Lambda Chi Alpha, Pi Kappa Alpha, Pi Kappa Phi, Sigma Alpha Epsilon, Sigma Chi, Sigma Nu, Sigma Phi Epsilon, Tau Kappa Epsilon or others, fraternity houses can be impacted by an act of nature, such as a hurricane, wildfire, or flood, causing extensive damage to the property and its contents.
Burglary and vandalism are realistic possibilities, too, along with serious accidents in which members or guests are injured or property is damaged. Fraternity houses also have to consider the prospect of being sued - even something as innocent as using a copyrighted image on a website can lead to lawsuits.
It does not take much imagination to realize that any of these perils could bankrupt a fraternity chapter, and it is not unlikely that an active fraternity house will face several incidents in short succession.
This is why it is so important to invest in the right types of insurance, often even beyond the coverage that a fraternity house would legally be required to carry.
With a solid fraternity house insurance Michigan plan, mishaps that could have dealt catastrophic financial blows become much more manageable, allowing the frat to continue thriving.
What Type Of Insurance Do MI Fraternity Houses Need?
No two fraternity chapters are the same - and the best insurance plans are tailored to the individual fraternity house's unique circumstances.
The location of the fraternity house, the number of students that live there, and the types of events hosted at the fraternity house all impact the types of coverage that will be needed.
Because not all insurers are willing to take on the risk of covering a MI frat house, it is best to consult an experienced insurance broker who is familiar with the Greek life. Meanwhile, here is a glimpse at the most essential types of fraternity house insurance Michigan coverages:
- Commercial Property: Acts of nature, theft, vandalism, and accidents all have the potential to inflict extensive property damage, both to your building and the contents within. Property insurance covers the repair and replacement costs, but be aware that flood coverage is not usually included.
- General Liability: In the event that a someone is injured on the premises of the frat house, or its members cause property damage to third parties, costly and time-consuming liability claims are likely to follow. This type of fraternity house insurance Michigan covers the resulting legal expenses, such as attorney and court fees as well as settlement payments.
- Directors And Officers Liability: This form of coverage takes care of the legal costs a fraternity house's officers may face if they are sued because they hold that office. In doing D&O insurance protects both the officers in question and the fraternity.
- Special Event Insurance: When a fraternity house hosts a large-scale event, even on their own premises, they require short-term special event insurance as general liability and property insurance will not cover damage related to such events. These policies are designed to cover just one event, and will pay for medical costs and property damage related to it.
In addition to these important types of fraternity house insurance Michigan, frats may require further coverage. Consult a trusted insurance broker to find out how your Greek organization can best protect itself.
MI Fraternity House's Risks & Exposures
Premises liability exposure is very high due to the number of youthful residents and their guests. The fraternity house should meet all life safety codes to assure resident safety. There should be locks and alarms in place to deter unauthorized entry. The fraternity must be well maintained to prevent trips, slips, and falls, with floor covering in good condition.
The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Steps should have handrails, be well-lighted, marked, and in good repair. Sidewalks, driveways, and parking lots should be free from defects and cleared of ice and snow in inclement weather. Balconies should be regularly inspected and maintained.
Roofs should be inaccessible to students. Rooms should be treated to prevent pest infestations such as bedbugs. Liquor is a concern if allowed on the premises or used at off-site parties hosted by the fraternity, as there may be little supervision to prevent overconsumption or drinking by underage residents or their guests.
Any special events offered and sponsored by the fraternity need very careful evaluation as additional security may be required. While hazing of new members is illegal in almost every state, some fraternities continue to disregard this, resulting in bodily injury. Personal injury allegations may arise from assault (including sexual assault), bullying, discrimination in the process of selecting new members, invasion of privacy, and wrongful eviction.
The fraternity should follow the national organization's rules and regulations regarding the use of liquor and the selection and induction of new members.
Workers compensation exposure at a local house or chapter may be limited to an on-site adult supervisor, a cook, and a housekeeper. Cleaning and maintenance operations can result in lung, eye or skin irritations and reactions. Slips and falls, back injury, hernias, sprains and strains from lifting and working at awkward positions are common.
Food preparation operations can result in cuts, scrapes, and burns. Interaction with residents and their guests may involve situations that could produce injuries, such as assault. Employees should be trained in dealing with these situations.
Employees should be trained in dealing with rowdy residents and guests. The national or parent organization may have employees who organize and control the overall operations.
Property exposure can be high due to many unsupervised college boys in control of a large house. There should be adult supervision on premises at all times. Ignition sources include electrical wiring, air conditioning and heating systems, and cooking equipment. Smoking and the use of candles in dormitory rooms should be prohibited.
Many houses are older, converted hotels, apartments, or single-family residences. Conversions should be handled by professionals with appropriate permits and licenses obtained.
The fraternity's national association should oversee the conversion and provide rules for maintenance, housekeeping, and permissible activities. Conversions must meet current codes. The age, condition, configuration, size, repair, and roof of the building affect the potential for loss as damages must be repaired to match the rest of the structure.
The houses must be inspected regularly to make sure all life safety and fire controls are met. Good controls must be in place to prevent, detect, and suppress fire. If meals are prepared on site, the kitchen should be equipped with adequate fire prevention and control devices. Hard-wired smoke detectors should be installed in all dormitory rooms as well as in common areas.
While the house is unoccupied during breaks, heat should be maintained to prevent pipes from breaking and causing water damage. Houses may also be targets for vandalism. Business interruption exposure can be high due to the loss of room rents should backup facilities be unavailable after a loss.
Inland marine exposure is limited to mobile items used for ceremonies. For most fraternities, records are maintained by the national organization. If the local fraternity bills for dues and other fees, accounts receivable coverage will be needed. There may be computers, contractors' equipment used for lawn care, fine arts for paintings and statuary, or valuable papers for members' and donors' information.
Crime exposure is generally limited to theft of money from application fees, fines, fundraisers, membership fees, and special social events. While property of residents could be stolen by employees, other residents, guests, or trespassers, this should be covered on their parents' homeowners policies.
Business auto exposure is limited due to the lack of employees. If hired and non-owned coverage is requested for volunteers using their vehicles on fraternity business, the driver and vehicle should be reviewed very carefully due to the high potential for accidents caused by younger drivers, transporting a large number of passengers, or driving long distances after dark to fraternity houses located on other campuses.
Fraternity House Insurance Michigan - The Bottom Line
To protect your organization, members and guests, having the right fraternity house insurance Michigan coverage is essential. To learn about the options are available to you, how much coverage you should invest in and the cost - speak to a reputable commercial insurance broker.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Lodging Places Insurance
Find out what types of business insurance that hotels, motels and other lodging places should have to protect their varied operations.
All lodging places provide sleeping accommodations for their patrons. Dining facilities are common because those who sleep will want to eat.
Many facilities also provide extra features such as offering recreational and exercise facilities or possibly meeting rooms and convention arrangements. Property coverage is needed because of high building and business personal property values at risk that are subject to a number of potential causes of loss, chief of which is fire.
Liability insurance is absolutely necessary because of the number of guests and the potential for losses ranging from slips and falls to food consumption to loss of life in the event of a disaster.
Other liability concerns are the additional guest services such as swimming pools, exercise rooms, recreational activities, and bars. Crime losses involving the theft of guest property, inventory and supplies must also be considered.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Accounts Receivable, Computers, Valuable Papers and Records, Employee Dishonesty, Guests Property, Money and Securities, General Liability, Employee Benefits, Liquor Liability, Umbrella, Business Auto Liability and Physical Damage, Hired and Non-Owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Spoilage, Bailees Customers, Commercial Articles Floater, Contractors Equipment, Fine Arts, Signs, Special Floater, Computer Fraud, Forgery, Cyber Liability, Employment-related Practices, Garagekeepers And Stop Gap Liability.
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Also find MI local small businesses by General Liability Class Code and learn about Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.