Recently, we have had a number of inquiries regarding the “who is an insured” section of the CGL form where volunteers and members are concerned. We would like to have your considered opinion on the scenarios that are described below.
A local Audubon Society club (the named insured) holds bird walks. John, a member, leads the group field trips; Sue, also a member, is a participant in the bird watching field trip led by John. John fails to warn the group that a step is slippery and Sue slips, breaking her ankle. Would Sue be covered by med pay? If she sues, would John be covered by the policy?
A church (the named insured) holds a chili supper in the church basement as a fundraiser. While serving chili to Frank, a member of the church, Jill, a volunteer, spills chili on him, scalding him badly. Would Frank be covered by med pay? If Frank sues, is Jill covered?
Would your answers change if the CGL forms had additional insured endorsements, such as CG 20 02 and CG 20 22, that applied to members and volunteers?
Indiana Subscriber
Medical payments coverage under the CGL form is for bodily injury caused by an accident on the premises owned by the named insured or because of the operations of the named insured. Under the first scenario, Sue is covered under the medical payments agreement for medical expenses she incurred for injuries arising out of the Society's operations. Sue's status would not be affected by either of the endorsements you mentioned.
If Sue chose to file a lawsuit and name John as a defendant, the CGL policy of the Audubon Society will not provide coverage for John unless he is an employee acting within the scope of his employment or an additional insured. CG 20 02 (additional insured – club members) names any member as an insured with respect to liability for activities performed on behalf of the named insured; therefore, if the Audubon CGL form has endorsement CG 20 02 as a part of the policy, coverage in the instance you describe would be extended to John.
Under the second scenario, Frank is covered under the medical payments section of the CGL form. The accident happened on the premises of the named insured and there is no exclusion that would apply to the loss. Even if the church's liability policy has been modified by endorsement CG 20 22 (additional insured – church members, officers, and volunteer workers), the med pay coverage for Frank is not affected.
If Frank sues the church and Jill, the CGL form will, of course, cover the church as the named insured; Jill is not an insured under the CGL form unless she is an employee of the church acting within the scope of her employment or listed as an additional insured. If CG 20 22 has modified the CGL form, Jill is considered an insured with respect to liability for the activities performed on behalf of the named insured, such as serving chili at a church fundraiser.
In summary, nonemployees such as club members or church volunteer workers do not have insured status under the CGL form unless they are named on endorsements CG 20 02 or CG 20 22. Once the endorsement is added, they are covered for premises or operations liability just like the named insured.
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