Insurance

The LPP consists of general liability (GL) insurance provided by third-party carriers to respond to liability claims.

All chartered and provisional chapters, alumni associations, alumni advisory boards, and house corporations, including officers thereof, when said individual officers are functioning in an official capacity on behalf of the insured entity and acting in accordance with the Fraternity’s Constitution, Chapter Codes, Standards, and other Fraternity policies.

Exclusions include any willful or intentional acts, criminal activity including hazing, assault and battery, illegal dispensing of alcohol beverages, and / or sexual misconduct, or conduct contrary to the Fraternity’s Constitution, Chapter Codes, or Standards or the rules of the participant’s school including allegations that such excluded acts were negligently conducted. Other typical or common limitations on scope and/ or exclusions from standard GL policies apply.

Coverage determinations are made by underwriters; however, the following events fall outside of the scope of coverage and require an outside special events policy.

• • Gun/shooting range
  • Events with inflatable(s)
  • Dunk tank(s)
  • Concerts
  • Events with water including, but not limited to pool(s), slip-n-slide(s), etc.
  • ‘Fight Nights’ and violence of any kind (intentional or unintentional)
  • Concessions (food sale/preparation)
  • Events with animals and/or livestock

This list is not exhaustive

• Seek special events coverage from URMIA TULIP or K & K Insurance.
• Ask the vendor if they will add you to their insurance policy as an additional insured.
• If coverage cannot be obtained, it is strongly encouraged not to move forward with the event.
• If you still decide to move forward with the event without insurance coverage, a release of liability waiver is recommended. Please contact insurance@pikes.org if you have additional questions.

Each chartered and provisional chapter is charged an annual assessment for participation in the LPP. For the current term, participants with fewer than 60 members pay $6,000; participants with 60-90 members pay $7,000; participants with more than 90 members pay $8,000. In addition, participants with chapter housing* will pay an additional assessment of $2,000; however, locations that elect to maintain substance-free housing will receive a credit of $2,000, resulting in a net additional assessment of $0. These assessments are not insurance premiums.

*Any facility or property owned, operated, or leased by a chapter, by its host institution for the purpose of housing chapter members, or by a recognized house corporation or facility that displays Pi Kappa Alpha letters or is regularly used to hold chapter meetings or host other chapter events may be considered chapter housing.

No Pi Kappa Alpha letters should be displayed unless the facility is owned, operated, or leased by a chapter or recognized house corporation.

Alumni associations and house corporations may be able to obtain higher limits, but higher limits are not available to chapters. Please contact insurance@pikes.org for additional inquiries.

The PIP provides an option for recognized house corporations to obtain affordable property insurance to protect real property.

Custom Designed, Unique Coverage: Favor & Co.’s insurance program provides custom designed unique insurance protection based on the special needs and requirements of college-based fraternal organizations. For over the last 35 years, Favor & Co. has designed and copyrighted customized manuscript policy forms. These tailored policy forms provide specialized coverage designed to protect the unique needs of Pi Kappa Alpha housing corporations.

Comprehensive protection and coverages, including $7 million blanket limit

Competitive rates: Housing corporations benefit from the savings enjoyed from competitive premium pricing. Long-term customers of Favor & Co. pay considerably less for their insurance than most other college-based fraternal organizations. Several participants are paying the same premium rates that they paid over 25 years ago. The program is designed to provide competitive stable pricing from year to year without the fluctuations resulting from outside insurance industry hard or soft market pressures. Customers with good loss records are rewarded with premium pricing reflective of their experience. As with all insurance programs, customers with less favorable claim frequency and severity pay more, but generally less than competing programs.

Grants available:

• Life Health & Safety Grant: Underwriters require a periodic survey and life safety review of each chapter house facility and the chapter in general. Typically, this is required once every three years. Grants are available to cover the cost of this life safety review for a location that is a participant in the Fraternity’s group PIP and receives a “good” rating or provides a timely response to the survey follow-up requirements. Eligibility for this grant is determined in consultation with the Fraternity’s insurance brokerage.

• Emergency Water Shutoff Valve Grant: Nearly 65% of the total property losses reported are due to water. In the last few years, the PIP has had multiple claims resulting from broken pipes, including losses of several hundred thousand dollars! Emergency shutoff valves can help to limit losses by automatically shutting off the flow of water when a pipe bursts or an unusual amount of water usage is detected. Grants are available to fund the purchase and installation of emergency shutoff valves for locations participating in the PIP at no cost to the insured. All that is required of the house corporation is to maintain Wi-Fi to enable the flowmeter to connect to the monitoring software. You can complete an application for this grant here.

• Additional coverages offered to entities that participate in both the LPP and PIP:
  • D&O: Directors and officers in the LPP that also participate in the PIP are included in this protection against wrongful acts (breach of duty, neglect, errors, etc.) and for wrongful employment acts (wrongful discrimination, discharge, harassment, discipline, etc.), provided the acts occurred in their capacity with the insured entity.
  • Commercial Crime: House corporations and other entities in the LPP that also participate in the PIP are included in this protection from employee theft, forgery, inside premises theft or robbery, computer fraud, and funds transfer fraud.

Professional Claims Management Oversight and Coordination: Favor & Co. has an incredibly successful track-record for actively assisting our customers in claims recovery; and has been actively involved with over 2,000 claims recovering over $70,000,000 on behalf of fraternity customers.

Peace of mind: Favor & Co. customers do not need to wonder or worry year to year who their next insurance company is going to be. Favor & Company is privileged to have earned the respect and confidence of Lloyd’s, and is appointed as the exclusive Coverholder / Underwriter for the Lloyd’s Fraternity Program. For over 300 years, Lloyd’s has been recognized as the best known and highly respected insurance market in the world. Their experience in insuring the toughest risks on earth makes them uniquely qualified to cover the specialized and difficult hazards faced by college based fraternal organizations.

Alumni associations and house corporations may be able to obtain higher limits, but higher limits are not available to chapters. Please contact insurance@pikes.org for additional inquiries.

Contact insurance@pikes.org for an application.

Payment can be made via e-check at pikes.org/ach.

Yes, premium financing is available. Please contact insurance@pikes.org for premium financing inquiries.