Insurance Company Suing Sigma Chi (U of Georgia alleged incident)

[Kevin]

The company might be looking at the litigation costs and deciding it's better to get declaratory relief saying that they're out of the picture rather than defending a claim for the young lady's personal injuries.

I imagine our liability policies contain all kinds of exclusions. If Sigma Chi loses here, blame their IHQ for negotiating an insufficient policy.

[UGAalum94]

Originally Posted by Kevin

The company might be looking at the litigation costs and deciding it's better to get declaratory relief saying that they're out of the picture rather than defending a claim for the young lady's personal injuries.

I imagine our liability policies contain all kinds of exclusions. If Sigma Chi loses here, blame their IHQ for negotiating an insufficient policy.

But can you negotiate a policy that covers you for damage that results from breaking the law? That's kind of what they are looking at here: members were responsible for serving alcohol to an underage person who because injured as a result of her drunkenness. Is anyone going to cover you for that?

[Eta: well I guess almost all auto-insurance covers us from damages that resulted even if we broke some laws, but I have a hard time imagining that a GLO could get coverage for what happened here.]

ETA: actually I'm surprised that Sigma Chi is sticking by the chapter as much as they are considering that some Sigma Chi policies were likely broken as well. On some level, I admire them for it, but, if the reporting in the Red and Black is accurate, there's a yikes factor too. Ask yourself what the Sigma Chi legal team and fraternity leadership would have said about this scenario in advance.