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Fraternity Liability Insurance Is The Biggest Scam Out There

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Back in September, a sketchy character by the name of Daniel McGee shot a security guard working a Texas Sigma Chi party after being booted from the event earlier in the night. Edward Earls physically tossed the non-affiliated, not-enrolled-in-school McGee from the house for stirring up problems with fraternity members and became the obvious target for this bozo’s retribution. Maniac McGee made verbal threats of shooting up the joint for the blatant disrespectful nature of his exit and followed through on his drunken promises returning 45 minutes later and firing one round into Earls’ foot. McGee was eventually arrested and booked for aggravated assault with a deadly weapon.

Open and shut case, right? Well…not exactly. Things took a bit of a more complex turn when Edward Earls decided to file a lawsuit against Sigma Chi to the tune of $5 million for being partially responsible in a slug finding his ankle. So because they left the handling of this drunk asshole McGee into the hands of someone who was paid to work their party instead of calling the police themselves, said paid handler of drunk asshole wants to be compensated even further for his trouble.

Now, Sigma Chi’s liability insurer, Liberty Corporate Capital, filed a suit in federal court today to get off the hook for any potential payout to Mr. Earls because of course they fucking did.

From Austin American-Statesman:

Liberty’s legal claim argues that the insurance policy doesn’t cover liability stemming from “assault and/or battery.”

It also claims the fraternity violated the conditions of the policy by allowing Magee to remain at the party.

Liberty asserts that the policy requires the fraternity to “safely escort from the function” any member or guest who “appears to be even slightly intoxicated.”

Is there a bigger scam than fraternity liability insurance? When’s the last time an accident or problematic incident on fraternity property was covered by the insurance company and not ruled null and void for breaking the policy’s terms and conditions because some brother had puke and beer residue on the bottom of his boat shoes from the night before? It’s like paying the mafia for protection. You throw money their way to merely exist, and — when you actually need to call on them for help — they’re nowhere to be found. Wile E. Coyote or the crew from Jackass have a better chance at actually receiving payouts from their liability insurance policies than any male-dominated Greek lettered organization on the planet. It’s the most bogus racket going in the game today.

[via Austin American-Statesman]

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Dan Regester

Dan Regester @Dan_Regester is a Senior Writer, Podcast Host, and Video Guy for Grandex Media. He's Delco trash to the core and a UCF cinema studies graduate because he never got around to applying to an actual film school. Dan is a gambling man, crypto investor, and procrastinator. He enjoys long walks to the water fountain between bench press sets and is not a fan of the homeless, the elderly, or the Phoenix Airport. Email tips to

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