Get the latest at www.zetapsi2009.com.  Convention 2009 includes an Indians home game, a trip to the Rock and Roll Hall of Fame, and a clam bake at the Nu chapter house that coincides with Cleveland's world famous Feast of the Assumption event!

 

To register for LTI's or for more info on these events, CLICK HERE to email Dave Hunter at [email protected]  

 

 

 

 

I want to talk about Risk Management.  I know, I know---Elders hate to hear it because they seem helpless to influence its actions at their chapters and actives, after rolling their eyes back, will pay attention about as much as when their parents tell them to clean up their room.  (From visiting some chapters recently, it does not appear that that admonition is any more effective in chapter houses.)
 
I am not going to get into the components, hazing, alcohol abuse or any of the "causes" of liability actions.  I want to address the EFFECT of those actions.
 
Everyone knows that our insurance premiums are the single largest component of IHQ's budget and of most chapters as well.  In the past, as incidents occurred and the estimated (reserve) and actual costs were incurred, our insurer recalculates our premium for upcoming years.  All those risks were spread among all members fairly equally.  But a few things have happened that makes me want to take a different tack.
 
As litigation rises, including in Canada, the distribution of costs to all members seems unfair.  Not only do repeat "offenders" not bear the major burden of the rate increases, but some chapters are not taking advantage of programming IHQ provides that is associated with reduced risk.
 
Due to our general risk level and the specific reserve for a Canadian incident, our total insurance cost increased by almost $40,000 this year!  And while we did account for about half of that increase, we did not know about the balance until after estimated insurances costs per chapter were already issued.  So we are about $25,000 over budget from the get-go.
 
I am going to ask our Board to consider a "surcharge" to all chapters mid year for some of the excess premiums.  We have never done that before (but we've never gotten so large a year over year increase).  Additionally, I would like the Board to consider some adjustments to chapter charges based on positive/negative behavior that we believe contributes to chapter risk, e.g. GPA, LTI training, active Risk Management program at chapter level, prior history, discipline behavior.
 
We are all going to pick up a portion of the increased premiums (or reduction if our risk level improves) but it seems to me that chapters that have multiple incidents and fail to address their own risk factors should pay more than their brothers who "play by the rules".
 
I realize that this will be a controversial and difficult issue.  But I wanted to get it out there for feedback.  I welcome any Elders or Actives that have opinions to direct them to us at [email protected].

 

Always in Tau Kappa Phi, 

David W. Busacca, Phi Alpha CXXXII