Risk Management & Fire Safety
University of Illinois
April 20, 2002
Dr. Ron Binder
Vice President of Gilchrist Alumni Management Associates
Former Director of Greek Affairs, UNC Chapel Hill, 19942000
Former Greek Advisor for the University of Georgia, 19861994
Past Chair of the Risk Management Committee for the
Association of Fraternity Advisors
Consulted at over 70 Colleges & Universities
House Dad for Lambda Chi Alpha & Phi Gamma Delta
Member of Sigma Phi Epsilon fraternity
Currently 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
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inherit your money
hit the lottery
sue someone
Real Reason
More people are getting seriously injured or
killed in Greek related activities
Top 20 Uninsurable Entities
1. Bars
2. Liquor stores
3. Child Care Centers
4. Asbestos Contractors
5. Hazardous Waste
Disposal Companies
6. Fraternities &
Sororities
7. Engineers
8. Doctors
9. Lawyers
10. Accountants
11. Manufacturers
12. Small Businesses
13. Non-Profit Entities
14. Architects
15. Nurse-Midwives
16. Cities
17. State Governments
18. School Districts
19. Fire Districts
20. Ice Rinks
Where are the Cases Found?
85% involve alcohol abuse (not use)
Over half of sexual assaults involve alcohol
95% of hazing incidents involve alcohol
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hazing suits tend to be the most costly
86% of all serious injuries involve alcohol
96% of all falls from roofs involve alcohol
More suits occur in the Fall than Spring
56% of the time we are sued by our own
members!
Alcohol Use vs. Alcohol Abuse
Moderate 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 Results
Non-Greeks = 45%
Athletes & Greeks = 75%
Risk Management Principles
Identify 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
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hazing
providing alcohol (kegs, bars, etc.)
providing alcohol to those noticeably
intoxicated
fights
using and dealing drugs
 Operation Equanox at UVA
Civil Liability
Being sued by anyone
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injured party
parents
friends
Results in judgement for damages
56% 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/member
Do your members know how much they are
paying for liability insurance?
Liability Insurance
Policies do not cover the following:
Anything illegal
 hazing
 providing alcohol (kegs, bars, etc.)
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Anything against your national policy
 hazing
 providing alcohol (kegs, bars, etc.)
 open parties
Those violating their national policies have
their premiums increased dramatically
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Sigma Phi Epsilon: $1,500 increase
Illinois Hazing Policy
Standard definition
used by all nationals
Regardless of the
willingness of the
participant
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 Hazing
To 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 Policy
Most all groups are FIPG: prohibits the
following:
Common-source containers (kegs, bars, etc.)
All events are BYOB
Purchasing alcohol with chapter funds
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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
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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:
st
Member’s 21 Birthday
Rite of passage in America
Heavy drinking of hard liquor
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23 shots is the mythical record
Group behavior
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Phi Delt @ Chico State
Michigan State
Where are our brothers/sisters when
this is happening
Open Parties
All groups adopted this policy
Doors are to be monitored
No flyers (Va. Tech)
Groups must approve who is admitted
Once admitted, chapter is responsible
for the individual
Events 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?
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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:
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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 Phi
Kappa Alpha Psi @ UGA @ South
Eastern Missouri State
Recent Greek Fires
June 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., five
Oct. 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 Fire
5 students killed on Mother’s Day fire after a
party
House passed recent inspection
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Code did not require anything beyond smoke
detectors
Fire spread in about 15 minutes
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Followed the staircase up through the house
2 students didn’t make it out of their beds
Ushered in sweeping reforms
Required sprinklers in all Greek houses in 5
years
Myths of Fire Safety
Fires are pretty rare today
Fire kills
Concrete facilities stop fires
Fire alarms get people out
Sorority houses don’t need alarms or
sprinklers since they are cleaner
Alarms save people, sprinklers save property
All sprinkler heads go off during a fire
Sprinkler heads are easily damaged
Sprinkler systems cost over $100,000
Sprinkler Ordinance
Greek Affairs lobbied the town to require this
Limited opportunity: human nature diminishes
tragedy
All Greek houses and new multi-dwellings
5 year window to install
Houses closed if not sprinkled
UGA facing similar ordinance
Pennsylvania contemplating similar rule
Seton Hall dorm fire pushing NJ & Nation
Issues with Sprinklers
Cost averaged $50,000
How much are pipes hidden determines cost
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Common areas or whole house
Will never go back so it is a one-time decision
Require new water lines
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Possible tap fees & recurring water fees
Takes 10 weeks to install: summer only
option
New fire alarm systems installed
Costs & Fundraising
Average system costs $50,000
Break on house insurance
National programs: Lambda Chi Alpha
Relatively easy item to ask alumni to
fund
Parents a key ally and source of funds
Ushers in other fundraising
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UNC: over $10 million
Overall Fire Safety Program
Selecting fire marshal
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Outlining duties clearly
Regular, unannounced fire drills
Regular fire inspections
High interaction with town fire dept.
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The more interaction between Greeks and Fire
Dept. the better!
Long-term plan for fire safety & sprinklers
Cleanliness program
Continual education: students think they are
invincible!
Advisor’s Liability
Know your national policies
Know Illinois’s policies
Act as the conscience of the chapter
Stop behavior that is illegal, against policy or
can potentially hurt someone
If you take part in problem situations you can
be liable
If you practice good common sense you will
be fine
Do the right thing
Disciplining Members
Follow your national & local by-laws
Create a standards committee to handle
Put things in writing (verbal doesn’t cut it)
Be creative in sanctions
Keep records
Stop the little things and you will never get to
the big things
Don’t hesitate to remove members who won’t
abide by the rule
Risk Management Strategies
Give members copies of your national policies
Give members copies of Illinois’s policies
Talk about risk management at each meeting
Bring in speakers to reinforce the message
Forward stories on the internet to the chapter
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Check out this site for fire safety:
greeks.unc.edu/fire.html
Make sure your leaders attend leadership schools
Don’t be afraid to intervene (like being a parent)
Do what your Ritual tells you to do