Volunteer Workers and Tips

July 15, 2013

We insure a seasonal condo association consisting of 20 individual units under CGL Form 00 01 12 07. During the summer months, the association sponsors 3-4 family dinners for the unit owners and friends, utilizing the services of both paid and unpaid volunteers. The cooks and dishwasher are unpaid volunteers; the teenage servers participate in tips collected at the conclusion of the dinner.

It is my understanding the volunteers would be covered under the CGL form if sued while performing duties related to the condo business and would also be eligible for medical payments coverage if they themselves were injured. My question concerns the volunteers who share in the collected tips. Would receipt of this form of remuneration trigger the workers compensation exclusion both under the general liability coverage and the medical payments coverage? If so should a workers compensation policy be recommended? Also, is a work permit required for volunteers under the age of 18?

California Subscriber

Teenagers who share tips in this instance are not employees of the named insured. They are not getting paid by the named insured and their work is not under the control of the named insured. They are getting paid by the people they serve and their pay depends on the quality of their service, so in effect, they are something like independent contractors. The workers comp exclusion in the CGL form is not going to be triggered and a workers comp policy is not necessary.

You would have to check with the state law on work permits for volunteers under 18 since that can vary by state.

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