1. Forms
2. CG
3. CG-34-06

What the form is

The CG 34 06 Additional Insured – Volunteer Workers endorsement modifies the 'Who Is An Insured' section of the Liquor Liability Coverage Form. Its purpose is to grant insured status to volunteer workers of the named insured, but only while those volunteers are performing duties related to the conduct of the insured's business. This means that if a volunteer worker is named in a lawsuit for an incident arising out of their work for the insured, this endorsement may provide them with coverage under the insured's liquor liability policy.

Classes of business it applies to

This endorsement is specifically used with the Liquor Liability Coverage Forms CG 00 33 and CG 00 34. Therefore, it applies to businesses or organizations that have an exposure to liquor liability and utilize volunteer workers. Examples include:

• Non-profit organizations hosting fundraising dinners or galas where volunteers serve alcoholic beverages.
• Clubs or associations that use volunteers to bartend at member events.
• Community festivals or events where volunteers are involved in the sale or service of alcohol under the organization's liquor license.

Special considerations

• Scope of Coverage: Coverage for volunteer workers is strictly limited to liability arising out of the duties they perform for the named insured and in relation to the insured's business operations covered under the liquor liability policy. Activities outside this scope would not be covered.
• Specific to Liquor Liability: It's crucial to understand that CG 34 06 is tailored for liquor liability. If an insured needs to cover volunteers for general liability exposures, a different additional insured endorsement designed for the Commercial General Liability (CGL) form would be necessary.
• Contractual Requirements: While this form adds volunteers as insureds, it doesn't automatically satisfy all contractual requirements an organization might have with its volunteers regarding insurance.

Key information for agents and underwriters

• Identifying the Need: Agents should proactively discuss volunteer activities with clients who have liquor liability coverage, especially non-profits and event organizers. If volunteers are involved in serving or selling alcohol, this endorsement should be considered.
• Risk Assessment: Underwriters will need to understand the nature and extent of volunteer involvement. Factors to consider include the training and supervision provided to volunteers, the types of events, and the controls in place to manage alcohol service.
• Proper Form Usage: Ensure that CG 34 06 is used only with the appropriate Liquor Liability Coverage Forms (CG 00 33 or CG 00 34). Using the incorrect endorsement can lead to coverage gaps.
• Distinction from Employee Coverage: While CGL forms may automatically include volunteers as insureds (often within the definition of 'employee' for coverage purposes), liquor liability forms may require this specific endorsement to extend coverage to volunteers.
• Premium Implications: Adding this endorsement may have premium implications, which should be discussed with the insured. The underwriter will assess the increased exposure due to the activities of volunteer workers.