Responding to Your Chapter House Inspection Reports

Triangle Fraternity is in a good position to continue to show our underwriters our value as a client. We have an outstanding loss ratio as an organization and have maintained a positive and consistent relationship with our broker (James R. Favor and Company) and our primary underwriter (Lloyds of London.) We would like to say we have safe chapter homes, but we honestly don't have all the proof to show for it. During the last round of inspections 5 years ago, only a handful of our chapters responding to the Facility inspections. While we may have acted on our inspections, in the eyes of the insurance underwriters, we didn't do one darn thing.

Now is our time to prove otherwise. The following outline has been prepared with the help of James R. Favor and Company and should help some of the most commonly asked questions about responding to our inspection reports. 'No response" to the inspection reports is the worst thing we could communicate to our broker and underwriter. In fact, alumni organizations that do not respond to inspection reports will be charged a fee in the next year's liability insurance premium.

Once the alumni and/or house corporation leadership has received the report, the group has 30 days to provide an initial written response to the James R. Favor Agency and a carbon copy to the National Headquaters. 

When all the information about our inspection reports has been gathered, James R. Favor will then begin working on the insurance renewal of Triangles interests.

1. Respond promptly to the report:
   Respond in writing to James R. Favor and Company and cc a copy to the Fraternity HQ. Address your planned response to each requirement for change.

2. Implement changes where possible:
   The underwriters understand that requirements for change cannot always be accomplished immediately. However, requirements that involve only minimal or nominal costs should be promptly address and implemented. Your response should clearly state which items have been addressed.

3. A risk management plan for changes:
   In responding to your inspection report, develop and outline your proposed plan and timetable for accomplishing those items that cannot be addressed immediately. Our underwriters are reasonable and understand that some requirements may involve greater costs and will take time to complete.

4. Assistance in developing your risk management plan for changes:
   James R. Favor and Company and the Fraternity Headquarters can assist you in developing a written plan for accomplishing your requirements for change.

5. Obtain estimated costs:
   Secure estimated costs from qualified contractors for the necessary changes. Once approximate costs are known, determine if costs can be budgeted for or if special funding will be needed. The Triangle Building Loan Fund may be able to assist you in your efforts. For information on how the Triangle Building Loan Fund may be able to assist, check out the BLF page on this site.

6. Submit your final plan and timetable:
   Once costs and funding have been addressed, establish a timetable for accomplishing the needed changes. Prepare your written plan, including your costs and timetable and submit a copy to James R. Favor and Company and the Headquarters.

7. Keep communications open:
   As with any plan, situations may arise which require revisions. If this becomes necessary, please advise us accordingly and provide a revised timetable for the completion of your plan.

8. Confirm requirements are completed:
   To assure that you will receive the best possible rates, advise James R. Favor and Company in writing as various requirements are accomplished and completed.