Coverage details

Who is not insured
Coverage summary
Exclusions
Insurance coverages not part of the program
Covered activities
Insurance limits
Coverage territory
How do I join the program?
2009-10 annual assessments
Definitions

Who is insured

• The following active organizations in the United States, its territories, and possessions are named insureds under the program:
  • Rotary clubs (including chartered Rotary clubs)
  • Rotary districts
  • Rotary club foundations
  • Rotary district foundations
  • Interact clubs
  • Rotaract clubs
  • Rotary Community Corps
  • Certified district youth exchange organizations (including multidistrict or multiclub organizations)
  • PETS organizations (including multidistrict organizations)

The above includes members, their families, employees, and volunteers of these organizations while acting within the scope of their roles for the above organizations.

Who is not insured

Below are some organizations that are not insured through this policy:

• Provisional Rotary organizations (However, newly chartered Rotary clubs are provided with automatic coverage.)
• Fellowship organizations and Rotarian Action Groups
• Inner Wheel organizations
• Gift of Life organizations
• Youthact, Earlyact, or similar organizations
• Youth exchange organizations not certified by Rotary International
• Separate legal entities created by insureds (other than foundations)

However, clubs and districts are covered for their vicarious liability for general liability claims arising from these organizations. Vicarious liability occurs when your club/district is liable for the negligent actions of another organization, although your club/district was not directly responsible for the injury or damage. 

Coverage summary

The program provides general liability insurance coverage for active U.S. Rotary clubs and districts (including its Rotarians and volunteers in their role as such for the club or district) for their liability arising out of bodily injury to a third party or damage to a third party’s property, subject to policy terms and conditions.

The program also provides coverage for the following:

• Liquor liability. Liability for damages to a third party arising from the selling, serving or furnishing of alcoholic beverages.
• Non-owned/hired automobile liability. Liability coverage for the use of hired, leased, borrowed, or non-owned automobiles, but only excess coverage is provided over the owner’s automobile liability insurance. Coverage is provided only to the insured organization and not to the owner or operator of any automobile. If the Rotary club/district owns an automobile, it must be separately insured. There is no comprehensive/collision coverage for damage to any automobile.
  
  Note: The coverage territory for non-owned/hired automobile liability coverage is limited to only the United States, its territories and possessions, and Canada. There is no coverage for travel in Mexico or other countries.

Exclusions

Some of the exclusions under the program include:

• Aircraft or automobile liability. Bodily injury or property damage arising from the ownership, maintenance, use or entrustment to others of any owned aircraft or automobile. Use includes loading and unloading.
• Athletics activities. Medical expense payments for bodily injury to a person injured while practicing, instructing or participating in any physical exercises or games, sports, or athletic contests, unless there is legal liability resulting from the negligence of your club/district.
• Contractual liability. Damages assumed under a contract that is not covered under a general liability policy.
• Criminal acts. Personal and advertising injury arising out of a criminal act committed by or at the direction of the insured.
• Daycares. Bodily injury or property damage arising from the ongoing operations or management of a daycare.
• Employment related practices. Liability arising out of employment related perils, such as injury to employees.
• Expected or intended injury
• Fireworks (Pyrotechnics). Bodily injury or property damage arising from the transportation, delivery, storage, set-up, detonation, takedown, or clean up of fireworks by an insured or additional insured. However, this exclusion does not apply to an insured’s vicarious liability arising from the transportation, delivery, storage, set-up, detonation, takedown, or clean up of fireworks by a third party.
• Fungi, bacteria, pollution, or asbestos
• Infringement of copyright, patent, trademark or trade secret. Personal or advertising injury arising out of the infringement of copyright, patent, trademark, trade secret, or other intellectual property rights.
• Mobile equipment. Bodily injury or property damage arising out of (1) transportation of mobile equipment by an auto owned or operated by or rented or loaned to any insured or (2) the use of mobile equipment in, or while in practice for, or while being prepared for, any prearranged racing, speeding, demolition, or stunting activity (go-carts, demolition derbies, coaster races, snowmobile races, monster truck events, lawnmower races, etc).
• Money or currency losses. This includes theft.
• Professional services. Rendering of professional services of any kind (such as those provided by doctors, dentists, auditors, accountants, architects, or engineers).
• Property. Damage to property of any kind (whether leased, borrowed, or owned) while in the insured’s care, custody or control.
• Watercraft. Liability for the ownership of watercraft and use of non-owned watercraft 51 feet or greater in size.
• Workers compensation and similar laws. Any obligation of the insured under workers’ compensation, disability benefits, or unemployment compensation laws.
• Youth exchange programs that are not certified by Rotary International.

Insurance coverages not part of the program 

• Aircraft/non-owned aircraft liability
• Automobile liability
• Crime insurance (a.k.a. Fidelity Bond, Employee Dishonesty Bond)
• Directors and officers liability
• Employer’s liability
• Employment practices liability
• Media liability
• Personal health and travel accident
• Professional liability
• Property insurance
• Watercraft liability
• Workers’ Compensation  

Covered activities

• Alcohol sale or service at local fairs and festivals, such as participation in or the sponsorship of wine-tasting festivals.
• Directing traffic at an event.
• Valet parking. Parking automobiles on or next to property your club or district owns or rents only. (Parking cars elsewhere is not covered.). However, there is no coverage for damage to the automobile in your care, custody or control.
• Food preparation, service, or sponsorship at local fairs and festivals, pancake breakfasts, barbecues, etc.
• Athletics or sports events such as 5k run/walks, RYLA activities, bike rides, soccer, or football games, etc. However, payments for medical expenses arising from the bodily injury to a person injured while practicing, instructing or participating in any physical exercises or games, sports, or athletic contests are not covered unless there is legal liability resulting from the negligence of your club/district. Please ensure that the participants of these events sign waivers releasing the Rotary club/district from liability arising out of any injuries.
• Interact clubs' projects and events that are supervised and controlled by the sponsoring Rotary club(s) 
• Golf tournaments
• Fishing tournaments
• Rubber duck races and dragon-boat races
• Poker runs
• Auctions, including silent auctions
• Fireworks display sponsorship (Sponsorship denotes that a third party will transport, deliver, store, set up the display, perform the detonation of the pyrotechnic, take down the display, clean up, and survey the area for debris or unexploded pyrotechnics.)
• Air show sponsorship. No coverage is available for the liability arising from the operation, maintenance, or use of any aircraft. Coverage only applies to activities such as operating a concession stand at the show
• Trailers (for food or beverage distribution) while standing alone (disconnected from an automobile). When trailer is attached to or pulled by an automobile, that automobile‘s insurance should provide coverage.
• Minor construction activities, such as erecting a playground or renovating a home
• Adopt-a-road activities
• Arts and craft fairs
• Club meetings

This is not an exhaustive list of covered activities. If you are unsure of whether your project or activity is covered, please contact Lockton.

Note: We strongly recommend that your club/district enter into written contracts with any entity that will be performing services on your club/district’s behalf. The contract should contain provisions that transfer the liability risk to the entity that controls the risk. Such provisions include indemnification and requiring the other party to name your Rotary club/district as an additional insured on their general liability insurance policy. You should always request a certificate of insurance and a policy endorsement to confirm this coverage. Local legal counsel can assist you with the appropriate contract language.

Events with attendance more than 10,000. If the attendance at any event organized and managed by a Rotary club/district is expected to exceed 10,000 attendees, please e-mail RI Risk Management to determine if coverage is available.

Insurance limits

US$250,000 Self-insured retention (All claim costs paid at this retention level are paid for by assessments collected from U.S. Rotarians through the July SAR.)
$2 million per occurrence
$5 million excess liability insurance
$500,000 damages to premises rented to you (per premise)

Coverage territory

The general liability insurance provides coverage for claims that occur in the United States, its territories and possessions, and Canada. Limited coverage is available for claims that occur worldwide, provided that the claim is brought or a lawsuit is filed in the United States, its territories and possessions, or Canada.

The coverage territory for non-owned or hired automobile coverage is limited to the United States, its territories and possessions, and Canada. There is no coverage for travel in Mexico or other countries.

How do I join the program?

Coverage is automatic for active clubs and districts in the United States and its territories and possessions. No application is necessary.  

2009-10 annual assessments

Assessments are allocated annually to all covered U.S. clubs through the 1 July semiannual report. The 2009-10 rates per member are as follows:

CA, CO, FL, NJ, NY, RI, TN	US$4.50/active dues-paying Rotarian
AL, HI, MA, OR, PA, TX, WA	$3.03/active dues-paying Rotarian
All other U.S. states	$2.35/active dues-paying Rotarian
U.S. territories and possessions	$1.08/active dues-paying Rotarian

  

The cost of the program is directly related to the cost of claims. Because assessment rates are based on the frequency and severity of claims experienced in each state, it is important to make safety a priority when conducting all activities and events.

Suggestions regarding safety practices are provided in the loss-control guidelines .

Definitions

• An insured (a.k.a. a named insured) is an entity or any of its members specifically designated as an insured in an insurance policy. An insured is also one who, although unnamed, falls within the policy definition of an insured. For more details on who is an insured, please see Who Is Insured .
• An additional insured is an entity not automatically included as an insured under an insurance policy, but for whom limited insured status is arranged. Additional insured status does not extend full general liability insurance coverage to the other entities, but rather provides limited coverage for that entity in the event that a claim arises from your club/district’s acts or omissions. An additional insured is not covered for its own acts or omissions. To protect itself from such claims, the additional insured would have to secure its own general liability policy. Additional insured status will be provided only if this requirement is stated in a written and signed contract, agreement, or permit.