Does the general liability cover breaches of contract?
A. In most situations, breach of contract is not covered. However, under certain circumstances, the liability coverage of Phi Kappa Tau Fraternity’s insurance contract is extended to protect other parties with whom a Phi Kappa Tau chapter may enter into a contractual agreement. No contract should be signed by any entity/chapter of the Fraternity without complete understanding of liabilities being assumed and insurance coverage, if any, that is provided. When any questions arise, please contact your chapter advisor or the Executive Offices. Example: In a case where an unauthorized officer of the chapter signed a contract for catering services, the chapter and insurance company was held liable for payment to the vendor when the contract was not competed by the chapter. It is important that all contracts and agreements are reviewed by the BOG and that only authorized officers sign contracts.
