Risk Management & Fire Safety

2. Risk Management & Fire Safety University of Illinois April 20, 2002

3. Dr. Ron Binder • Vice President of Gilchrist Alumni Management Associates • Former Director of Greek Affairs, UNC Chapel Hill, 1994-2000 • Former Greek Advisor for the University of Georgia, 1986-1994 • 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

4. 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 Reason More people are getting seriously injured or killed in Greek related activities

5. 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 Top 20 Uninsurable Entities

6. Where are the Cases Found? • 85% involve alcohol abuse (not use) • Over half of sexual assaults involve alcohol • 95% of hazing incidents involve alcohol • 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!

7. 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%

8. 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

9. Criminal Liability • That which is illegal, either state or federal • hazing • providing alcohol (kegs, bars, etc.) • providing alcohol to those noticeably intoxicated • fights • using and dealing drugs • Operation Equanox at UVA

10. Civil Liability • Being sued by anyone • 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)!

11. 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?

12. Liability Insurance • Policies 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

13. 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 Illinois Hazing Policy

14. 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

15. 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 • cans = kegs (Penn State) • alcohol in beer machines (Chi Psi @ UGA) • Alcohol-free recruitment (alcohol @ Career Office) • No alcohol at new member functions

16. 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

17. Riskiest Event of the Year II: Member’s 21st Birthday • Rite of passage in America • Heavy 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

18. 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

19. 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

20. “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

21. 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

22. 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

23. UNC Phi Gam Fire • 5 students killed on Mother’s Day fire after a party • House 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 beds • Ushered in sweeping reforms • Required sprinklers in all Greek houses in 5 years

24. 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

25. 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

26. 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

27. 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 • UNC: over $10 million

28. Overall Fire Safety Program • Selecting fire marshal • Outlining duties clearly • Regular, unannounced fire drills • Regular fire inspections • High interaction with town fire dept. • 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!

29. 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

30. 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

31. 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 • 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