December 3, 1987, was a date that forever changed the way many Greeks arranged their social calendar. It was on that date that the Articles of Incorporation for the Fraternity Insurance purchasing Group (FIPG) were adopted, and terms such as risk management, Duty of Care, Host Liquor, umbrella policies, and legal liability became a part of the contemporary Greek vocabulary.
Prior to the formation of this group, most Greeks believed that protection against risk and damage was simple - just get liability insurance. Yet, as insurance companies became reluctant to provide coverage to Greeks, a new way of looking at insurance was needed. This required two things:
- The best insurance coverage available.
- A comprehensive risk management plan.
Therefore, the original concept behind the Fraternity Insurance Purchasing Group was simple and two-fold. First, adopt a risk management plan that would help reduce exposure to risk. Second, use the group buying power of many national organizations as leverage to obtain more extensive coverage at lower premiums.
A copy of the Order’s risk management plan is found in this site; please review its provisions carefully because they apply to your alumni chapter just as much as active chapters. A few of the key points include:
- No common containers (i.e., kegs) at chapter functions;
- Alcohol may not be purchased with chapter funds, nor may members “pass the hat” to purchase alcohol;
- Functions should be BYOB or be catered by a licensed, third-party vendor with a minimum $1,000,000 general liability policy;
- No “open” parties. Each function should have a specific guest list;
- All rush functions shall be dry (no alcohol);
- No hazing.
Additionally, there are provisions against sexual abuse and provisions which require adherence to local fire codes. There may even be annual inspections of the active chapter house by the insurance carrier.
While the Fraternity Insurance Purchasing Group (FIPG) has evolved and is known today as the Fraternity Insurance Trust (FIT), the risk management provisions that group created have changed the face of the Greek movement and have become synonymous with our attempt to make the chapter house environment a safer one for all of our members and guests.
Please do not hesitate to contact the National Administrative Office or your Province Commander if you have questions about the Order’s insurance policy or risk management provisions.
