Liability Insurance Issue
Reaching a Crisis Point
By DERRICK CABRERA
National Executive Vice President
Whether our alumni are aware of it or not, the chapters of Alpha Delta Gamma National Fraternity throughout the nation are coming under increased pressure from their universities to maintain general liability insurance coverage. Currently, only a handful of chapters' respective campuses actually require it as a condition of being allowed to operate. But the trend is moving toward more and more universities obligating Greek organizations to have such coverage, which can be extremely expensive.
To prepare for this, ADG created a new program in 2000, under which the National fraternity could offer liability coverage to all Chapters. Last year, we accepted a bid from one carrier and were able to offer coverage to all chapters at the rate of $40 per active per semester.
Unfortunately, the premium for this coverage for the coming year is approximately 33% higher than last year, despite the fact that no claims were filed. The cost for this coverage for the 2003-04 school year will be a staggering $27,000, far more than we can afford.
|
|
( Derrick Cabrera at Spring Confrence 2003 )
After consulting several alumni on the matter, we believe this increase was due solely to the overall increase in insurance losses across the board, particularly as underwriters attempt to recoup losses from the 9/11 terrorist attacks and other disasters.
In light of past-due insurance premiums owed by current actives, coupled with the increased group premium we are facing for the coming year, the National Fraternity is preparing to pull funds from savings accounts in order to obtain coverage for the fall semester. At this point, we do not have, nor do we expect to have sufficient funds to offer coverage to our chapters next spring.
If any alum has any connection to the liability insurance industry, or is actually in the insurance business, please contact National President Bryan Lind ( bryanlind@hotmail.com) and/or myself derrickcabrera@aol.com if he feels he can provide further insight and options regarding this dilemma.
|
