NAMED INSURED

The provision in a fraternity insurance policy that identifies who is covered may be the most important provision in the policy.  It is called the “named insured clause.”  For a fraternity, the named insured clause should include the general fraternity, all local chapters, all house corporations, officers and employees of all those organizations, and members of the organizations when they are acting on behalf of the fraternity.  Among the employees that should be included in the named insured clause are house mothers and house directors.

The prudent course of action for all fraternity leaders is to review the named insured clause on the insurance policies at least once a year to determine if circumstances have changed in such a way as to require a change in the named insured clause.

Depending on the circumstances, it may be cost effective to include a fraternity related foundation and its officers and employees in the same policy.  The scope of the named insured clause should be regularly reviewed between the fraternity management and the fraternity’s insurance agent.