I hired a friend to be my Visual Observer (VO) for $50. He was looking at the sky, walking backward, and tripped over a curb. He broke his wrist and needs surgery ($15,000). He asked for my insurance info, but my General Liability insurer said, “He’s an employee—GL does not cover employee injuries.”
Key Takeaways
- VO = Employee: If you direct their work and pay them, they are an employee (or uninsured subcontractor). General Liability excludes injuries to employees.
- Workers Comp Required: Even for a gig, you are liable for workplace injuries. You need a Workers Compensation policy.
- Independent Contractor Loophole (Failed): You can call him a “contractor,” but if he doesn’t have his own insurance, the state labor board will classify him as your employee and stick you with the bill + fines.
- Volunteers: Even if unpaid, a volunteer injured while helping your business creates a liability mess. Some policies cover volunteers; most require Workers Comp.
The “Why” (The Trap): “Employer’s Liability” exclusion
GL Policy: “Excludes bodily injury to an employee of the insured arising out of and in the course of employment.”
Since the VO was working for you, GL is out.
If you don’t have Workers Comp, you pay the $15k cash.
The Investigation: “I Called Them”
I asked how to cover a Spotter.
1. Workers Comp (Hartford)
- Cost: Minimum premium ~$500/year.
- Coverage: Pays the wrist surgery + lost wages.
- Verdict: Essential if you use spotters/assistants.
2. Occupational Accident (Occ Acc)
- Alternative: Cheaper than Workers Comp. Pays medical bills for contractors.
- Verdict: Good for gig workers.
3. Friends & Family
- Trap: Relying on “He’s my friend, he won’t sue.”
- Reality: His health insurance provider will sue you (Subrogation) once they see “Workplace Injury” on the ER intake form.
Comparison Table: Spotter Injury
| Policy | Covers Spotter Injury? | Cost |
| General Liability | No (Excluded) | N/A |
| Workers Comp | Yes | $500+/yr |
| Occupational Accident | Yes | $300/yr |
Step-by-Step Action Plan
- Hire Insured VOs: Only hire spotters who have their own business/insurance.
- Get a “Ghost Policy”: A minimum premium Workers Comp policy protects you from the state fines and medical bills.
- Safety Briefing: Brief the VO: “Watch your footing. Don’t walk backward without checking.” Document this briefing. Negligence defense.
- Waiver? A waiver for an employee/contractor is often void against Workers Comp laws. Insurance is the only fix.
FAQ
Q: What if he was just a bystander I asked to look?
A: Then he is a “Volunteer.” GL might cover him, but it’s a fight.
Q: Can I pay his medical bills cash?
A: Risky. If complications arise, you own the lifetime injury.
[IMAGE: Photo of a Visual Observer wearing a safety vest.]