re: Family of LSU student Max Gruver awarded $6.1 million in damages over hazing death.

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assume the fraternity itself has some type of liability policy at the premises but this wording is confusing.

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But commercial liability policies get tricky when there's a crime involved. If any of those frat stars were found guilty of a crime, there is some leeway for those liability carriers to not have to pay full limits, or sometimes anything at all.