Risk Management & Fire SafetyRisk Management & Fire Safety

University of Illinois

April 20, 2002

Dr. Ron BinderVice President of Gilchrist Alumni Management AssociatesFormer Director of Greek Affairs, UNC Chapel Hill, 1994-2000Former Greek Advisor for the University of Georgia, 1986-1994Past Chair of the Risk Management Committee for the Association of Fraternity AdvisorsConsulted at over 70 Colleges & UniversitiesHouse Dad for Lambda Chi Alpha & Phi Gamma DeltaMember of Sigma Phi Epsilon fraternityCurrently on Sig Ep Alumni Boards at UT & Michigan)Chair the Greek Life Advisory Committee at UT & BGSU

Risk Management for Greeks

20 years ago no one heard of risk management

We live in a litigious society

3 ways of getting rich today inherit your money hit the lottery sue someone

Real ReasonReal Reason

More people are getting seriously injured or More people are getting seriously injured or killed in Greek related activitieskilled in Greek related activities

Top 20 Uninsurable Entities

1. Bars2. Liquor stores3. Child Care Centers4. Asbestos Contractors5. Hazardous Waste Disposal Companies6. Fraternities & Sororities7. Engineers8. Doctors9. Lawyers

10. Accountants11. Manufacturers12. Small Businesses13. Non-Profit Entities14. Architects15. Nurse-Midwives16. Cities17. State Governments18. School Districts19. Fire Districts20. Ice Rinks

Where are the Cases Found?85% involve alcohol abuse (not use)Over half of sexual assaults involve alcohol95% of hazing incidents involve alcohol hazing suits tend to be the most costly

86% of all serious injuries involve alcohol96% of all falls from roofs involve alcoholMore suits occur in the Fall than Spring

56% of the time we are sued by our own 56% of the time we are sued by our own members!members!

Alcohol Use vs. Alcohol AbuseModerate drinking causes little problems

The more alcohol consumed, the more problems

Binge drinking is defined as having 5 or more drinks in one night, during the last 2 weeks

For women, the limit is 4

National Undergrad Binge Drinking ResultsNon-Greeks = 45%Non-Greeks = 45%

Athletes & Greeks = 75%Athletes & Greeks = 75%

Risk Management PrinciplesIdentify What is Risky Behavior

Has someone gotten hurt? Whitlock v Denver Beta @ UNC

Does it violate a policy?

Does it violate a law? Most policies or laws are the result of someone

getting killed Delta Tau Delta’s hazing policy

Criminal Liability

That which is illegal, either state or federal hazing providing alcohol (kegs, bars, etc.) providing alcohol to those noticeably noticeably

intoxicatedintoxicated fights using and dealing drugs

Operation Equanox at UVA

Civil LiabilityBeing sued by anyone injured party parents friends

Results in judgement for damages56% of the time we are sued by our own members!Largest lawsuit ever settled against a fraternity?$21 million (KA @ U. of Texas)!

Liability Insurance

Most chapters have at least $1 million insurance policies (some $2 million)

Need insurance to protect volunteer advisors and chapter assets (mostly housing)

Average sorority member pays $50/member

Average fraternity member pays $100/member

Highest rate is $150/memberDo your members know how much they are

paying for liability insurance?

Liability InsurancePolicies do not cover the following: Anything illegal

hazing providing alcohol (kegs, bars, etc.)

Anything against your national policy hazing providing alcohol (kegs, bars, etc.) open parties

Those violating their national policies have their premiums increased dramatically Sigma Phi Epsilon: $1,500 increase

Illinois Hazing Policy

Standard definition used by all nationals

Regardless of the Regardless of the willingness of the willingness of the participantparticipant

1. Forced consumption

of alcohol

2. Calisthenics, runs,

push-ups, etc.

2. Paddling

3. Line-Ups

4. Road Trips

5. Running Personal Errands of the Members

A Better Definition of HazingTo determine if it’s hazing, ask the following:

1. Would you tell prospective members?

2. Would you tell your National?

3. Would you tell the Dean?

4. Would you tell your parents?

5. Would you be willing to have your new members interviewed?

If you hesitate, it’s probably hazing

Illinois Alcohol PolicyMost all groups are FIPG: prohibits the following:Common-source containers (kegs, bars, etc.)All events are BYOBPurchasing alcohol with chapter funds cans = kegs (Penn State) alcohol in beer machines (Chi Psi @ UGA)

Alcohol-free recruitment (alcohol @ Career Office)No alcohol at new member functions

Riskiest Event of the Year I:Big Brother/Big Sister Night

When new members receive big brother/sister

Most common gift is alcohol!

What message does this send?

Sig Ep @ UGA Big brother gives little a fifth Never said “if you don’t drink you won’t be a Sig Ep” Let’s have a drink to this, to that, to the founders (12) Consumed a fifth in one hour Peaked out at 0.300 BAC at the hospital

Riskiest Event of the Year II: Member’s 21st Birthday

Rite of passage in AmericaHeavy drinking of hard liquor 23 shots is the mythical record

Group behavior Phi Delt @ Chico State Michigan State

Where are our brothers/sisters when this is happening

Open Parties

All groups adopted this policyDoors are to be monitoredNo flyers (Va. Tech)Groups must approve who is admittedOnce admitted, chapter is responsible for the individualEvents are for members & invited guests only

What is a Chapter Event?Events held at a chapter house or in the Union are clearly a chapter event

Formals are clearly a chapter event

Other events?

1. Who paid for the event?

2. How was it advertised?

3. What % of members were present? All national policies are much stricter SPE & Chi O @ UGA, SN & Pi Phi @ Mercer

“Official” & “Unofficial”

No such thing!

Courts view each event on its own merit

Duck Theory: if it walks like a duck & sounds like a duck,

then it’s a duck

Sig Ep @ Duke

Pi Kap @ Radford

Recent Court Cases

$21 million, U. of Texas$40 million, U. of Texas$22 million UVA$1.65 million KA$900,000 settlement, ATO$900,000 settlement, Omega Psi PhiKappa Alpha Psi @ UGA @ South Eastern Missouri State

Recent Greek FiresJune 8, 2000: Kappa Sigma fraternity, Decatur, Ill., one

March 19, 2000: Tau Kappa Epsilon fraternity, Bloomsburg, Pa., three

May 8, 1999: Sigma Chi fraternity, Columbia, Mo., one

Feb. 16, 1999: Omega Beta Psi fraternity, Geneseo, N.Y., one

Feb. 13, 1999: Pi Kappa Alpha fraternity, Rolla, Mo., one

Oct. 19, 1996: Phi Delta Theta fraternity, Delaware, Ohio, one

May 12, 1996: Phi Gamma Delta fraternity, Chapel Hill, N.C., fiveOct. 21, 1994: Beta Sigma Delta fraternity, Bloomsburg, Pa., five

Oct. 24, 1993: Alpha Xi Delta sorority, La Crosse, Wis., one

Feb. 13, 1992: Phi Kappa Theta fraternity, California, Pa., one

Dec. 8, 1990: Lambda Chi Alpha fraternity, Erie, Pa., one

Sept. 8, 1990: Phi Kappa Sigma fraternity, Berkeley, Calif., three

UNC Phi Gam Fire5 students killed on Mother’s Day fire after a partyHouse passed recent inspection Code did not require anything beyond smoke

detectors

Fire spread in about 15 minutes Followed the staircase up through the house

2 students didn’t make it out of their bedsUshered in sweeping reformsRequired sprinklers in all Greek houses in 5 years

Myths of Fire SafetyFires are pretty rare todayFire killsConcrete facilities stop firesFire alarms get people outSorority houses don’t need alarms or sprinklers since they are cleanerAlarms save people, sprinklers save propertyAll sprinkler heads go off during a fireSprinkler heads are easily damagedSprinkler systems cost over $100,000

Sprinkler OrdinanceGreek Affairs lobbied the town to require thisLimited opportunity: human nature diminishes tragedyAll Greek houses and new multi-dwellings5 year window to installHouses closed if not sprinkledUGA facing similar ordinancePennsylvania contemplating similar ruleSeton Hall dorm fire pushing NJ & Nation

Issues with Sprinklers

Cost averaged $50,000

How much are pipes hidden determines cost Common areas or whole house Will never go back so it is a one-time decision

Require new water lines Possible tap fees & recurring water fees

Takes 10 weeks to install: summer only option

New fire alarm systems installed

Costs & Fundraising

Average system costs $50,000Break on house insuranceNational programs: Lambda Chi AlphaRelatively easy item to ask alumni to fundParents a key ally and source of fundsUshers in other fundraising UNC: over $10 million

Overall Fire Safety ProgramSelecting fire marshal Outlining duties clearly

Regular, unannounced fire drillsRegular fire inspectionsHigh interaction with town fire dept. The more interaction between Greeks and Fire Dept.

the better!

Long-term plan for fire safety & sprinklersCleanliness programContinual education: students think they are invincible!

Advisor’s LiabilityKnow your national policiesKnow Illinois’s policiesAct as the conscience of the chapterStop behavior that is illegal, against policy or can potentially hurt someoneIf you take part in problem situations you can be liableIf you practice good common sense you will be fineDo the right thing

Disciplining MembersFollow your national & local by-lawsCreate a standards committee to handlePut things in writing (verbal doesn’t cut it)Be creative in sanctionsKeep recordsStop the little things and you will never get to the big thingsDon’t hesitate to remove members who won’t abide by the rule

Risk Management StrategiesGive members copies of your national policiesGive members copies of Illinois’s policiesTalk about risk management at each meetingBring in speakers to reinforce the messageForward stories on the internet to the chapter Check out this site for fire safety:

greeks.unc.edu/fire.htmlMake sure your leaders attend leadership schoolsDon’t be afraid to intervene (like being a parent)Do what your Ritual tells you to do