Volunteers as Employees – Don’t Fall for the Bait and Switch

Adding volunteers as employees to the CGL eliminates built-in coverage.
Volunteers have unique benefits under the commercial general liability (CGL) policy not available to employees. The unmodified CGL policy will:

• Provide defense to businesses with volunteers named in a claim or lawsuit as well as to volunteers while performing duties to the business.
• Afford coverage to injured volunteers under medical payments.
• Allow volunteers to perfect a claim under the CGL beyond medical payments.

Employees cannot perfect a claim under the CGL. The CGL has sweeping exclusions for anything employment-related. An employee’s exclusive remedy is workers compensation. However, the CGL makes an exception for volunteer workers1. Not only will the unmodified CGL policy defend volunteers, under Coverage C – Medical Payments2 all Insureds are excluded from having their accidental bodily injury expenses paid for except volunteer workers. In addition, this basic CGL policy will allow the volunteer to perfect a claim under CGL beyond medical payments.
More and more insurance carriers are amending the CGL – by endorsement or within the policy form itself – to include “volunteers as employees.” Many agents think adding volunteers as employees is necessary to afford protection for the volunteer worker. However, the volunteer already has protection in the basic CGL policy. “Who is an Insured” includes:
SECTION II - WHO IS AN INSURED, 2. Each of the following is also an insured: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business.
Adding volunteers as employees does not expand coverage; it eliminates the volunteer’s ability to access medical payments coverage and the ability to pursue a claim under CGL. This is problematic since volunteers are frequently not covered by workers compensation. Clearly, any business with a significant number of volunteers should arrange appropriate coverage, such as negotiating a separate volunteer accident policy. For the business with occasional volunteers, it is unlikely an agent has arranged separate coverage. Therefore, the CGL policy should be double-checked to ensure coverage for volunteers has not been limited by adding them as employees.
For more information on volunteer coverage gaps or a formal review of your current commercial insurance program, please do not hesitate to contact the AP Real Estate Team today.

Additional Policy Excerpts:
1)   COMMERCIAL GENERAL LIABILITY COVERAGE FORM (CG 00 01 04 13): SECTION V – DEFINITIONS, 20. "Volunteer worker" means a person who is not your "employee," and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you.
2)   COMMERCIAL GENERAL LIABILITY COVERAGE FORM (CG 00 01 04 13): SECTION I – COVERAGES, COVERAGE C - MEDICAL PAYMENTS, 2. Exclusions, We will not pay expenses for "bodily injury": a. Any Insured: To any insured, except "volunteer workers."