Insurance Requirements for Student Organization Housing

The Auburn University community and Student Organizations leasing land on campus (“organizations”) are exposed to unique risks including financial loss stemming from negligent/wrongful acts and omissions of such Organizations and their members. 

These insurance requirements are hereby enacted in order to protect these organizations, its undergraduates and local alumni, the international/national organization, and the university which all can be named in lawsuits stemming from activities on Auburn University’s campus.

All student organizations housed on campus including fraternity and sorority chapter members and their alumni are encouraged to review their policies on a regular basis in order to determine whether additional coverage is advisable. Failure to comply with these insurance requirements will not only result in a breach of your lease agreement but compromises the protection of your organization, its members, and the university’s mission.   

The requirements of insurance do not constitute an acceptance of any responsibility for, or duty to regulate, specific conduct or activities of the organization or its members by the university. All organizations and members are responsible for their own actions and activities.

1. GENERAL LIABILITY INSURANCE REQUIREMENT

At all times student organizations leasing Auburn University property shall have in place general liability insurance including host liquor liability coverage with such companies and limits as may be reasonably satisfactory to the university. 

  • The insurance policy include additional insured language by endorsement which states: Auburn University, its Board of Trustees, Trustees Individually, Faculty, Staff and Administrators are included as an additional insured as respect to the Commercial General Liability policy;
  • The General Liability insurance shall be primary to any insurance or self-insurance carried by Auburn University;
  • Auburn University requires that a current Certificates of Insurance showing evidence of General Liability insurance and the endorsement granting Additional Insured status be provided to Risk Management & Safety annually and within seven (7) days of policy expiration date;
  • Contain a provision that a thirty (30) day prior written notice of cancellation shall be sent to the University (or else obtain in writing from the broker/insured that they will notify you within 7 days after any notice from the insurer;
  • This insurance shall be written by a company licensed to do business in Alabama with a minimum A.M. Best rating of A-VII.

            Current General Liability Insurance Requirements*

Commercial General Liability (“CGL”) – Occurrence Form

Each Occurrence – Premises/Operations                                 $1,000,000

Personal & Advertising Injury                                                        $1,000,000

Products-Completed Operations                                                 $1,000,000

General Aggregate                                                                          $2,000,000

Fire Damage Liability                                                                         $100,000

*These coverages and limits are to be considered minimum requirements and in no way limit the liability of the organization. Limits required are subject to change.

2. PROPERTY INSURANCE REQUIREMENTS

At all times during the leasehold estate the building or buildings on Auburn University property shall be insured for not less than the insurable value of said buildings, with loss payable to the University as its interest may appear.

  • Auburn University requires that a current Certificates of Insurance showing evidence of property insurance be provided to the Office of Risk Management & Safety annually and within seven (7) days of policy expiration date;
  • The Certificates of Insurance must list Auburn University as a Loss Payee;
  • Contain a provision that a thirty (30) day prior written notice of cancellation shall be sent to the University (or else obtain in writing from the broker/insured that they will notify you within 7 days after any notice from the insurer;
  • This insurance shall be written by a company licensed to do business in Alabama with a minimum A.M. Best rating of A-VII.

Loss payee status grants the university joint access to any insurance proceeds. The university has an insurable interest in the buildings erected by the tenants. All insurance money received by the University shall be held by it first, as additional security for the payment to the University of rentals and other charges herein provided, pending the rebuilding or repairing of the building or buildings damaged or destroyed; and secondly, for the purpose of defraying the cost of rebuilding or repairing such building or buildings. Funds held by the university will be used to repair or replace the building. Any excess funds shall be paid by the University to the Lessee upon completion of construction.

3. SPECIAL CIRCUMSTANCES

Additional insurance may be required for activities, events or projects that may generate a liability exposure with the potential for a more serious claim or frequency of claims. It is also possible that other insurance programs in addition to the Commercial General Liability insurance requirements outlined above may be required. Some of the possible circumstances where the insurance requirements may be altered include, but are not limited to:

    Chapter House Construction Projects

    Social Events with an Estimated Attendance in Excess of 500

    Events, Activities and Projects Involving Several Student/Greek Organizations

    Events Openly Promoted to the Non-Student Public

    Events, Activities and Projects with Inherently Dangerous Equipment or Activities

In addition to insurance requirements for special circumstances, The university may require organizations to develop and implement certain risk management programs to control hazards and reduce the potential of injury or damage.