SigEp provides a crime insurance policy with a $50,000 limit. In 2011, computer fraud coverage was added to the crime package. The crime policy covers both the undergraduate chapter and the AVC and protects the entities against the dishonesty of anyone controlling the chapter or AVC monies. The crime insurance carrier, Zurich/Fidelity & Deposit Company of Maryland, requires the following safeguards be in place in order to be covered for a claim:
- Require dual signatures on checks over a certain pre-determined amount, such as $500. When counter signatures are not possible, the insurance carrier recommends using a voucher system. For example, one person approves invoices, another drafts checks and a different person signs the checks. (Anyone involved with check writing /signing should not be reconciling the accounts.)
- Assign monthly account reconciliation to an officer other than the person with check writing authority.
- Reconcile liquid asset accounts monthly.
- Have an account that prohibits debit card and ATM withdrawals.
- Assign an independent third party to conduct an annual audit of the AVC and chapter’s finances.
- Make it well known to undergraduate members and alumni volunteers that SigEp and its insurance provider intend to prosecute in the event a crime is committed.
- Make sure as old officers transition out of their officer positions that they are removed from the chapter / AVC bank accounts.