Insurance & Risk Management FAQs
What type of insurance do we have?
The Fraternity purchases liability insurance, which is insurance that protects Tau Kappa Epsilon against claims from legal liability, provides legal defense, and pays sums necessary to settle claims against the Fraternity. Liability insurance is not the same thing as health insurance.
Who is covered under the insurance policy?
Active collegiate members (only if they are paid and in the chapter records with the Offices of the Grand Chapter), Chapter Advisor, members of the Board of Advisors, and Fraternity Volunteers are all covered. These individuals must be registered with the Offices of the Grand Chapter, and they must be acting in an official capacity. Our insurance does not cover anyone who is violating our risk management policies, acting in a criminal way, or a way that could cause harm to someone else.
Why do we need insurance coverage?
Suppose that someone is injured during a chapter event and this claim becomes a nasty lawsuit. You are named as a defendant. Our insurance will cover you, as well as the Fraternity, as long as you are an active, paid member of Tau Kappa Epsilon in good standing, you did not violate any laws or intentionally cause harm to the other person, and you were acting in good faith.
What is considered a chapter event?
To understand what may be considered a TKE event, consider the following questions. If the answer to any question is "yes", then regardless of the location (annex, brother's house, apartment), your University, the Fraternity, and a court of law may consider it a TKE event. Therefore, the Risk Management Guidelines need to be followed.
- Was the event pre-planned or pre-meditated?
- Was the event discussed during a chapter meeting or executive committee meeting?
- Was it advertised among the brothers through any means (word of mouth, flyer, email)?
- Were chapter funds used in any way?
- Did chapter officers help plan the event in any way?
- Did the event occur as a result of a Fraternity function (e.g. big brother night, bid night, post-initiation party)?
- Was the property where the gathering occurred owned, rented or leased by a member of Tau Kappa Epsilon?
- Would a third party construe the function as Fraternity related?
Is our property covered?
No. Not every chapter needs property insurance, so we leave purchasing property insurance up to your local housing corporation or your Board of Advisors. Our insurance broker does sell property insurance to many TKE Chapters.
What do we do if someone is hurt?
Assist the injured by administering first aid to the best of your ability and call for help (police, fire department, ambulance, 911, etc.) Secure the area to keep others from getting hurt. Every chapter should have a Crisis Communication Plan (CCP). Get out your CCP, follow the procedures listed, and contact the Offices of the Grand Chapter. Always cooperate with local authorities.
What is a Certificate of Insurance?
A Certificate of Insurance is a form that verifies that you have insurance, states the coverage limits, and identifies who is covered under the policy. Sometimes your university will want to see a Certificate of Insurance as proof that you have adequate insurance. Contact the Offices of the Grand Chapter, and we will send a copy to your university. But usually, when someone asks for a Certificate of Insurance, they are wanting for TKE to name them as an additional insured, which means that they want our insurance policy to cover them.
How do we name an Additional Insured?
Only James R Favor & Company can approve naming an additional insured to our policy. They will consider these requests carefully to protect the Fraternity. If a third party asks you for a Certificate of Insurance naming them as an additional insured, you must begin by making a request to our insurance broker. They will review the request for approval and verify necessary aspects with the Offices of the Grand Chapter. Chapters and Colonies should plan for this process to take up to 30 days to complete from start to finish. There may be an additional cost associated with your chapter or colony requesting an Additional Insured Certificate.
When are Risk Management Fees due?
Each chapter and colony receives an invoice directly from our insurance broker prior to August 31. You must the make full payment any time prior to October 15.
Why are Risk Management Fees so expensive?
Fraternities and Sororities are a high risk market, so our insurance premium, the amount we pay to the insurance company, is very expensive.
How do we pay our Risk Management Fees?
All Risk Management Fee payments will be sent directly to James R. Favor & Company. TKE Billing & Collection Procedures can be found here.
What happens if we do not pay?
If James R. Favor & Company does not have payment by the close of business on the date due, the chapter or colony may be subject to losing insurance coverage and asked to pay a late payment or insurance reinstatement charge of $250. In addition, the chapter or colony may be subject to the Judicial Process of Tau Kappa Epsilon Fraternity which may result in suspended operations and other outcomes in accordance with The Black Book.The chapter may be subject to the Judicial Process of Tau Kappa Epsilon Fraternity. Through this, you may have your chapter operations suspended, lose insurance coverage, and possibly face other outcomes in accordance with The Black Book.