Clubs are 'chartered' Rotary International.

Clubs are like a franchise, and must operate within the rules set by the 'franchisor', in our case Rotary International.

Those rules are in the Rotary International Code of Policies.

https://my.rotary.org/en/learning-reference/about-rotary/governance-documents

Clubs must maintain 'appropriate' liability insurance - section 72.060. of the Code which reads:

Insurance and risk management is a regional function.

The Region (Zone) 8 Insurance and Protection Committee, which has been established for decades organises and get insurance for all the Rotary entities in Region (zone) 8.  That Region covers all of Australasia and Oceania.  Due to jurisdictional issues the programmes  for Australasia and Oceania are separate.

Enquiries for Oceania countries from Kiribati to the north, Vanuatu from the West to French Polynesia to the East and New Zealand to the south should be made by filing a Helpdesk ticket - see the menu bar at the top of this webpage.

What happens if a club operates without insurance?

The Regional leadership is required to advise Rotary International and the Club maybe directed to cease operations.

Finally, even if this is a Rotary International requirement and can result in the club being order to cease operations, why do clubs need liability insurance?   Because in carrying out activities for your Club a mistake or error may be made that causes harm.  If the Club is insured that may result in a claim.  If the club has no insurance that claim may be made against the Club officers or members or indeed Rotary International.  Doing things carry risk and that is why this risk protection is so important that it is a requirement of your being able to operate a Club.

The insurance is there for you, Rotary and your public.