Another cost of Hazing & other Rish Management Violations

[SOM]

As you read this drop in you own groups's name and/or letters:

The following letter was mailed out to all of our --- undergraduate members last week regarding the Risk Management Committees efforts to continue emphasizing the importance to follow our Risk Management policies to prevent future incidents. Please feel free to read and pass along as you see fit. These messages will be apart of a series of communications by the Risk Management Committee over the course of the year.

Dear Brother,

Due to large liability claims of recent years, our Fraternity’s loss history has deteriorated significantly. Since 2006, we have experienced:

- 11 liability claims costing greater than $100,000 each
- 2 claims over $1,000,000
- Total incurred losses over $7.1 million

As a result of these claims, our:

- 2012 liability insurance deductible has doubled from $500,000 to $750,000
- Liability premiums have increased 64% in two years
- Risk-management assessments have increased from $175 to $240 per man

Given our poor loss experience, our rising insurance costs and the fact that the first $750,000 of every 2012 claim will come out of ---'s funds, it is rather easy and obvious to conclude that we must prevent any and all large liability losses in 2012.

Knowing that our statement is easier said than done, we would like to suggest a few, proactive measures that you can do to help us mitigate our risk:

1. Discuss our loss experience. Include risk management, and the costs of insurance, as agenda items for your next Executive Council and chapter meetings.
2. Think about the risk associated with your chapter and your chapter’s social programming and traditions. Could your chapter incur the next large loss for --- in 2012?
3. Evaluate how well your chapter understands and adheres to the risk-management policies and programs outlined in...
4. Consider the consequences of violating policies and causing a major claim: chapter death penalty; criminal prosecution; future wage garnishment.
5. Intervene by standing up, speaking up and leading the way to prevent the next loss from occurring at your chapter. One brother’s actions can save a life and a chapter

Please know much more information will be coming from us in the next weeks and months regarding risk management and ways to keep your chapter experience positive and proactive. In the interim, send us your ideas and feedback to prevent any liability losses in 2012. A key aspect of Fraternity is our collective exposure to risk. We must minimize that risk one brother and one chapter at a time.