There are three specific insurance coverages that house corporations need to review.
Property insurance coverage provides protection against direct physical loss or damage to property and its contents owned by the Theta Chi house corporation.
General liability insurance coverage provides insurance protection against bodily injury and property damage claims brought against the insured by third parties or members of the public. The basis for such claims is an allegation of negligence against one or more of the insured which has resulted in damages to the third party.
If a claim or lawsuit is filed against the insured, the insurance company has both the right to settle and a duty to defend the insured against the claim or suit. Theta Chi Fraternity, Inc., provides primary general liability coverage of $250,000 per occurrence and $500,000 in the aggregate annually. If the house corporation has assets over these limits, it are encouraged to purchase additional liability coverage on their own.
Directors and officers liability
Directors and officers liability insurance coverage provides insurance protection for directors, officers, volunteers, employees, and for the chapter. The basis for such claims is an allegation of "wrongful acts" against the insured individually or the organization.
A “wrongful act” is defined as any actual or alleged act, error, omission, misstatement, misleading statement, neglect or breach of duty by the directors, officers, or the organization in the discharge of their duties.
If a claim or lawsuit is filed against the insured, the insurance company has the right to settle and provides coverage to defend the insured against the claim or suit. Theta Chi Fraternity, Inc. provides directors and officers coverage to all house corporations in the amount of $5,000,000 in the aggregate per policy year.
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