The Rotary International Code of Policies requires clubs to maintain appropriate liability insurance. 

72.060. Club and District Liability Insurance 72.060.1. Maintenance of Liability Insurance Each club shall maintain liability insurance for its activities as appropriate for its geographic region. (November 2000 Mtg., Bd. Dec. 178) Source: November 2000 Mtg., Bd. Dec. 178

The Zone level through the body referred to in the code of Policies as 'Institute' fixes the insurance for the region.

This is because:

• liability insurance is managed through an integrated set of insurance products and the function is delegated by Rotary International to Zones
• Clubs are chartered from Rotary International and as such both use the brands and reputation of Rotary which is risk managed for the benefit of all our more than 44,000 clubs in the many brands and the more than 1.4 million members
• risks are not silos - actions of one Club or its officers can affect other Clubs and officers - as a network we work together to deliver on our 100's of programmes and projects.  There are many examples covered apart from public liability including Health and Safety risks, defamation, cyber, crimes etc
• if a Club or a member of a Club is participating in a program, whether RYE, an Action Group etc they need to know that the geographical mandate holds true

What are the issues for individual Rotary entities taking out separate cover:

1. 1. Potential legal issues - The entity (Club or trust or company) could be unwittingly breaching the contract with the Zone appointed broker, currently Aon.
      
      If say a Club went to a local broker and asked for that broker to arrange cover, that broker should ask if there is an existing broker. The answer from the Club must be YES as the master policy has been covering Clubs for many years and is still covering a Club. Every entity has an existing broker already. Engaging another broker, knowing that\, without disclosing that to a new broker can have serious consequences.
      
      As this programme has been running for so many years and most clubs have completed prior years, and the issue is covered in learning and development, it would be very unfortunate if a Club officer was to answer this question incorrectly.
      
      Note: all entities are already covered in the 2025-2026 policy- all they have to do is log in and answer the questions required by the insurer. The same arrangements apply for 2026-2027.
      AND
      
      
   2. Unexpected consequences - To change insurer without disclosing current insurance entitles the new insurer to cancel. Furthermore the new insurer will not cover claims that come from previous years and the old insurer may decline cover on the basis that there is now double insurance. This is a complex area relating what is called retroactive cover and if the Club or trust ceases operations may also fall into the trap of having no cover for what is called ‘runout’. AND
      
      
   3. Paying more – it is unlikely that a club would have the buying power that is part of the master policy process; AND
      
      
   4. The Club may end up paying twice but have no insurance – this is referred to as the peril of double insurance cover (see the separate forum post on this); AND
      
      
   5. Claims under a separate policy may cause loss to Rotary - if a Club did have a claim on its own insurance, that could end up, given the way insurance is underwritten across policyholders and even across insurers, causing the costs of insurance for the other Clubs to rise. A good example of this is the claims relating to failure to protect children, AND
      
      
   6. Officers may make unwitting false or misleading statements – officers may not have the extensive experience in Rotary's international operations that the Zone committees (which are drawn primarily from Past District Governors who are or have been Rotary International officers) and often include subject specialists or even Rotary International appointments such as being on the Council of Legislation;
      
      The annual submission from the Insurance team runs to more than 60 pages. Why? Because liability insurance is placed on a ‘proposal’ that is supplemented with as full disclosure as possible. While a standard for proposal is submitted the submission report covers risk management, programmes, precautionary advices and more. Simply filling out a form does not pass the responsibility to the broker. The law requires that the insured party set out as fully as possible what is known about the operations and hence risks that the ‘underwriter’ in the insurance company has to consider when providing the cover and terms of that cover.
      
      AND
      
      
   7. Insurance terms are not straight-forward – this already imposes a burden on the Zone team. Liability insurance can often be provided in several documents and are the to check that the insurance the Club might think appropriate, does actual conform with the requirements and does meet the 'geographical' covers for the Zone or part zone and the standards set (e.g sub-covers or lines) required to protect the officers. There are many terms used which have a special meaning in insurance law such as ‘endorsements’ ‘schedules, CoC’s and more; AND
   8. finally, breaking up the programme is not within the strategic direction for specialised risk management, as being implemented by Rotary International.

The renewal advice states:

"AON is our appointed broker for the whole of Zone 8"

and

"Rotary organisations included in this program cannot opt out and appoint another broker."

To do so would be a breach of the broker appointment and as ZIPC is a committee of Zone 8.  Zones (planned to be come regions) and is an administrative and reporting layer instantiated by Rotary International with Rules directly overseen and approved by Rotary International to do so would be a breach of Rule 2.010

2.010. Membership of Clubs in RI

RI is an association of member Rotary clubs, each of which has a direct relationship and common responsibility to the association with no national or other grouping of clubs intervening in the administration and functioning of the clubs as members of RI. Every member club of RI is expected to comply with the provisions of the constitutional documents which provide for the organizational structure and functioning of the club. (June 1998 Mtg., Bd. Dec. 348) Source: May-June 1976 Mtg., Bd. Dec. 265

There are many policies, codes and guides that are wrapped into the concept of a complying or 'Functioning' Club including:

    6 A Club NOT maintaining appropriate liability insurance as provided in section 72.060. of this Code 

    7 A Club NOT acting in a manner consistent with the RI constitution, bylaws, and the Rotary Code of Policies

and all leaders at a senior level have a duty and responsibility to report Clubs that are possibly not 'functioning' (source District Governors Handbook).

While, given the Code of Policies alone is over 900 pages, as noted there are many other duties and responsibilities that are part of the risk management jigsaw.

On the issue of broker appointment the Rules include this provision:

7.6.2 Responsibilities Its responsibilities are to:

7.6.2.1 negotiate with insurance companies and brokers the most cost effective common insurance cover for Rotary activities carried out by clubs in t h e Z o n e as listed in rule 7.7.2.1.3 below (the Scheme) and advise incoming governors of 7.6.2.1.1 within reasonable commercial in confidence limits, the process, course and outcome of the renewal negotiations for the Scheme for the coming year;

7.6.2.1.2 the cost, terms and conditions, extent and level of the cover available for the coming year with an emphasis on changes from the earlier cover;