Is the exposure for alcohol-related activities covered by the insurance program?
Under the insurance program, the fraternity/sorority is covered under host liquor liability coverage, which is similar to the type of coverage under a homeowner’s policy. This coverage protects an insured should they be named in a civil lawsuit in which someone was injured due to the consumption of alcohol. This coverage will respond as long as the courts interpret that the insured is not in the business of serving, selling, manufacturing, furnishing or distributing alcoholic beverages.
Remember: It is extremely important that all members of the fraternity/sorority follow the organization’s alcohol policy.