Insurance

 Coverage details

Who is insured

Below are organizations that are insured through this policy:

• The following active organizations in the United States, its territories, and possessions:
  • Rotary clubs
  • Rotary e-clubs
  • Rotary districts
  • Interact clubs
  • Rotaract clubs
  • Rotary Community Corps
  • Club and district youth exchange organizations (including multidistrict or multiclub organizations)
  • PETS organizations (including multidistrict organizations)
  • Group Study Exchange
  • Rotary Youth Leadership Awards (RYLA) activities
  • Club and district foundations

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

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

Coverage summary

The program provides coverage for legal liability to a third party (someone who is neither the insured nor the insurer) for the following losses:

• Bodily injury: Sickness or disease, sustained by a third party, including death
• Property damage: Physical injury to tangible property of a third party
• Advertising injury and personal injury: Injury to a third party that arises out of one or more of the following:
• False arrest, detention, or imprisonment
• Malicious prosecution
• Wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling, or premises
• Written or oral publication of material that libels or slanders a person or organization
• Written or oral publication of material that violates a person’s right of privacy
• Misappropriation of advertising ideas or style of doing business
• Infringement of copyright, title, or slogan.

The program also provides coverage for liability arising out of the following hazards:

• Liquor liability: Liability for damages to a third party arising from the occasional sale or service of alcoholic beverages 
• Fire damage legal liability coverage: Coverage for an insured’s liability due to fire damage to premises rented to the insured
• Non-owned and hired automobile liability: This coverage insures bodily injury or property damage to a third party that arises out of the use of an auto that is non-owned, hired, leased, or borrowed by an insured. This coverage provides liability insurance only and does not cover physical damage to the non-owned, hired, leased, or borrowed auto. Additionally, this coverage is in excess to any insurance coverage that may already be in place on the non-owned, hired, leased, or borrowed auto. For example, if your club borrows a vehicle, the insurance coverage already in place on the borrowed vehicle is the first layer of coverage.
  
  Coverage through this provision only applies in the United States, its territories and possessions, and Canada. No coverage is available for travel in Mexico. It is recommended that you secure a liability policy through a Mexican insurer before traveling or immediately upon crossing the border. Without such coverage, the driver of a vehicle will be jailed in the event of an accident.

Key exclusions

• Directors and officers liability coverage
• Health, medical, accident, travel medical, or travel accident coverage for any insured (This policy protects your organization from its legal liability to third parties and is not a substitute for personal medical coverage of your organization’s members.)
• Damage to property of any kind (whether leased, borrowed, or owned) while in the insured’s care, custody, or control
• Ownership, maintenance, use, or entrustment to others of any owned aircraft, auto, or watercraft
• Liability for the use of non-owned or hired autos while traveling in Mexico (Non-owned and hired auto liability is valid only in the United States, its territories and possessions, and Canada.)
• Non-owned watercraft 51 feet or greater 
• Golf carts that are licensed for over-the-road use
• Prearranged racing, speed, demolition, or stunting activities (go-carts, demolition derbies, coaster races, auto races, snowmobile races, monster truck events, lawnmower races, etc.)
• Pyrotechnic (fireworks) display set up, detonation, take down, and cleanup  (However, the sponsorship of such is covered. Sponsorship denotes that a third-party will set up the display, perform the detonation of the pyrotechnics, take down the display, and survey the area for debris or unexploded pyrotechnics.)
• Money or currency losses, including theft
• Crime coverage, a.k.a. fidelity bond, employee dishonesty bond (A separate insurance policy is necessary for this coverage.)
• Employer’s liability, workers’ compensation, and similar coverage
• Professional liability coverage (Coverage for rendering professional services, such as medical services, while employed by, sponsored by, or donating services to the named insured. These individuals’ professional liability insurance would apply.)
• Participant legal liability coverage and spectators’ liability coverage for sporting events
• Pollution (except for hostile fire)
• Membership discrimination
• Punitive damages
• Expected or intended injury (However, the use of reasonable force to protect persons or property is covered.)

Please note that this is not an exhaustive list of exclusions. For more information on exclusions, contact RI Risk Management.

Covered activities

• Alcohol sale or service at local fairs and festivals, such as participation in or the sponsorship of wine-tasting festivals (Please note that the program is designed to cover claims arising out of the occasional sale or serving of alcohol. Coverage is not intended to cover the sale or serving of alcohol at recurring events, such as a beer booth every weekend during at local sporting events.The sale or serving of alcohol at recurring events should be covered by a separate liquor liability policy.)
• Food preparation, service, or sponsorship at local fairs and festivals, pancake breakfasts, barbecues, etc.
• Athletic event sponsorship, such as 5K races, bike races, or triathlons (However, participants’ legal liability and spectators’ liability for these events are not covered.)
• Sports team event sponsorship, such as soccer, football, and softball games (Though coverage is not available for the actual team’s sports activities, coverage is available for activities apart from those directly related to an athletic activity, such as operating a concession stand. Participants’ legal liability and spectators’ liability for these events are not covered.)
• Rodeo sponsorship (However, active participation in or performance by an insured is not covered.)
• Golf tournaments and use of golf carts, unless licensed for over-the-road use
• Fishing tournaments
• Rubber duck races and dragon-boat races
• Poker runs
• Auctions, including silent auctions
• Parade activities (Please see the loss-control guidelines.)
• Wrapped fireworks sale, storage, and transportation (Wrapped conveys unopened pyrotechnics that are secured through a distributor or manufacturer.)
• Fireworks display sponsorship (Sponsorship denotes that a third party will set up the display, perform the detonation of the pyrotechnic, take down the display, and survey the area for debris or unexploded pyrotechnics.)
• Air show sponsorship (Coverage is not available for Rotarian-owned, leased, hired, or borrowed aircraft or the use of such. Coverage applies to activities such as operating concession stands at the show but does not cover accidents arising from the operation, maintenance, or use of any aircraft.)
• Parking cars on or next to property your club or district owns or rents (Parking cars elsewhere is not covered. Please review the loss-control guidelines for further information.)
• Non-owned or borrowed trailers (for food or beverage distribution) while standing alone (disconnected from a vehicle) (When an auto or truck pulls the trailer, the vehicle’s insurance responds. Rotary’s program covers liability only; property damage to a trailer must be insured through a property or inland marine policy.)
• 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. For more information on covered activities, please contact RI Risk Management.

Insurance limits

US$500,000 Self-insured retention (The self-insured retention is financed by Rotary International through its captive insurance company, PPH National Insurance Co. Clubs and districts are not responsible for this retention.)
US$ 1,000,000 Per occurrence
US$5,000,000 Excess liability insurance

Coverage territory

Coverage is provided for claims that occur worldwide as long as the claim is brought (or suit 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. 

Multinational districts

Coverage is provided for multinational districts, but coverage is not provided to clubs within those districts that are not located in the United States or its territories and possessions. Coverage for a multinational district is available for the district if a loss arises from a U.S. club function or a districtwide function. Coverage will not be available if the loss arises from a non-U.S. club function. It is recommended that multinational districts secure adequate insurance to cover losses arising from the operations and activities of their non-U.S. clubs.

Harassment and abuse claims

The policy does not specifically include nor exclude coverage for sexual harassment or abuse claims. However, the policy does exclude coverage for criminal and intentional acts. Therefore, coverage for harassment and abuse claims may or may not be available depending on the wording of a claimant’s allegations. 

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.  

2008-09 annual assessments

Assessments are allocated annually to all covered U.S. clubs through the 1 July semiannual report. The 2008-09 rates per member are as follows:

Assessment rates are based on claims loss history and exposure by state.  

Because past claims directly affect your assessment rate, it is in your best interest to make safety a priority when conducting your activities. 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 a person or organization 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’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 contract, agreement, or permit.