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New Insurance arrangement - 'Rotary Youth Extension'

on 4/08/20, 3:46 AM • 296 views

Correspondence on the new insurance arrangements refer to a 'Rotary Youth Extension' on the Liability policy. But it seems that what that says is not detailed anywhere? Please explain and advise.

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--Becky Giblin--

Becky Giblin

On 6/08/20, 1:45 AM

The additional cover for Youth is noted in the short-form proposal.

After consulting the broker, Apex Insurance, the wording for the Additional Cover endorsement on the Policy is as follows:

Additional Cover for Rotary programmes involving youth.

This policy provides additional cover for Districts [Clubs] that have programmes involving youth, where, as disclosed to AIG:

1. the District [Club] has adopted (as amended for the territory covered) the Rotary International Youth Protection Guide and the policies as set out in the Appendices to that document and

2. has completed amendment of Appendix A - District Youth Protection Policy to incorporate the laws of the jurisdiction and

3. has implemented screening and vetting of volunteers working with youth, including Police checks for those volunteers where required by the policy and finally

4. ensure that volunteers are trained as required by the District.

In summary provided Districts and Clubs follow the mandated Rotary International policy, as adapted by Districts in accordance with the Guide the Additional cover is explicitly included.

Additional Follow On Answer (August 6th 2020 16.41)

We have referred this further post back to Apex and AIG.

First, policy wordings are often established, as is the case with this wording, on a world wide basis.

Specific issues are often covered by additions to the documents that evidence the contract of insurance.

These additions are sometimes also referred to as 'Endorsements'.

In this programme of insurance, AIG have specifically included the Additional Cover to address the standard exclusion noted in the post.

The wording of the standard policy exclusion you refer to is:

8. Sexual Misconduct Exclusion

with the exception of Policy Section A7 – General Liability - Extension 6 - Punitive or Exemplary Damages,

this policy does not apply to any Claim arising out of, based upon, attributable to, directly or indirectly, any actual or alleged sexual molestation or abuse,

including any alleged direct sexual activity and any allegation relating thereto that

the Insured negligently employed, investigated, supervised or retained a person, or based on an alleged practice, custom or policy

including without limitation, any allegation that the violation of a civil right caused or contributed to such a Claim.

This was a key concern.

While the exclusion is in the standard wording, the Additional Cover provides the specific safety net that Districts and Clubs need.

The analysis of the exclusion is that Districts and Clubs will not be covered if:

1. they negligently employ, investigate, supervise or retain a person that generates a Claim or

2. based on an alleged practice, custom or policy ... (the District or Club) causes of contributes to the violation of a civil right.

As the post highlights, this exclusion (which is in most policies in some form or another) can only be addressed by AIG having knowledge of and accepting the RI Policy and District and Clubs, of course, adhering to the Policy.

This is why Rotary International now includes a specific requirement that the District or Club insurance provide cover, again provided the District or Club observe their duties under the RI Policy.

The post is therefore very helpful to us all as it underlines the importance of the Additional Cover statement.

Simply, if the Additional Cover requirements are met the District or Club should not have a claim excluded BECAUSE it will NOT have breached the cover.

Finally, the Additional Cover is a positive cover.

To use an analogy it is a fence at the top of the cliff, rather than a negative circumstance, which might mean that the Policy cannot extend to rescuing a District or Club or District that fails to implement the RI Policy.

If a District or Club fails to implement the Policy, as noted by Rotary International in the Guide, the consequences are not just for the District or Club but to the whole Rotary family.

That conduct is expressly prohibited by the RI Policy and Procedures.

If a claim is made and the RI Policies have been adopted and practiced then the Additional Cover can be relied on to make a claim under the Policy.

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Thanks - but I would like to know how that additional cover provided for in the policy wording? The AIG Insurance 'Association Edge' wording policy wording supplied by Apex has a specific 'Sexual Misconduct Exclusion' (exclusion 8). Is this exclusion formally over-ridden by this 'Rotary Youth Extension', or not. This is a crucial question because we have seen from other organisations' experiences this is the most likely source of legal action in this regard.

Gary Dome

on 6/08/20, 2:00 AM

I would like to see the wording of the policy endorsement that specifically overrides Exclusion 8 please. Without that, even if the Club DOES adopt the RI Youth Protection Guidelines the exclusion surely must still apply? Meaning that NO additional cover is actually provided?

Gary Dome

on 6/08/20, 9:29 PM

I am still awaiting a reply to this comment from last week please. The 'Additional Cover' woridng you refer to does not state HOW that additional cover is provided when the Sexual Misconduct Exclusion still applies to the underlying policy wording. If anything, the 'Additional Cover' is really a just a warranty requiring Rotary to act in a certain ways - it in itself provides NO 'additional coverage' as far as I can see. Will you please explain how it does? Also, what about Sexual Misconduct' that falls outside of a Rotary programme involving 'youth'? And how is 'Youth' defined?

Gary Dome

on 9/08/20, 11:50 PM

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Asked: 4/08/20, 3:46 AM
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Last updated: 6/08/20, 1:45 AM