?Do you know which people do not count as an employee under a Commercial General Liability (CGL) policy?

Table of Contents

What this article will do for you

You will learn what a CGL policy calls an employee. You will learn who does not count as an employee. You will see simple tests that courts and insurers use. You will read easy examples that match things that can happen in Florida homes and businesses. You will learn how a public adjuster can help you if you have a claim. You will read clear tips that you can use right away.

I work as an insurance professional and a public adjuster. I speak from that view. I will also recommend a local Florida firm that can help you. The firm is Otero Property Adjusting & Appraisals in Pensacola, FL. Their phone is (850) 285-0405 and their website is https://oteroadjusting.com/. Their office is at 3105 W Michigan Ave, Pensacola, FL 32526. They offer a free first inspection and they only get paid when you get paid.

Why you should care

You must know who counts as an employee. This rule affects what your insurance covers. If a person is an employee, CGL may not pay for certain injuries to that person. If a person is not an employee, CGL may pay for damage they cause to others. You may have to use workers’ compensation instead of CGL. You may lose coverage if you assume wrong.

What a Commercial General Liability policy covers in plain words

A CGL policy helps pay for claims that say you caused injury or property damage to someone else. It pays to defend you in a lawsuit. It pays damages that a court orders you to pay. It does not pay for every loss. It often does not pay for injuries to your own employees on the job. Those injuries often fall under workers’ compensation, not CGL.

Short answer to the question

An independent contractor is the main example of someone who is not considered an employee under a CGL policy. Other people who often are not employees include subcontractors, volunteers, and some leased workers, depending on the contract. A licensed public adjuster who works on your claim usually acts as an independent contractor. That means the adjuster usually is not your employee.

Now let us explain this step by step.

What the policy usually says about “employee”

Insurance policies use a definition of “employee.” The policy may say that the word “employee” includes leased employees and temporary workers. The policy may also say that the employer does not have coverage under CGL for bodily injury to an employee that arises out of work the employee does for the employer. This is the “employee exclusion.” It prevents overlap with workers’ compensation.

The exact wording matters. You must read your policy or ask a professional to read it for you.

Why the policy excludes employees from certain coverages

Workers’ compensation laws make employers buy a different kind of insurance for worker injuries. If CGL paid those claims, you would get paid twice. The law and insurance rules avoid that.

Common types of people you will meet on a claim and whether they are an employee

You will meet many people when you file a claim or hire help. The table below shows common roles and whether they count as an employee under a CGL policy in most cases. Note that specific policy language and state law can change the answer.

Role	Counted as Employee?	Short reason
Full-time worker you hire and pay payroll taxes for	Yes	You control their work and you pay taxes.
Part-time worker on your payroll	Yes	Same as above.
Temporary worker hired through an agency	Sometimes	Agency may be employer. Check contract and policy.
Leased worker (from a staffing company)	Sometimes	Many policies include leased workers as employees. Check policy.
Independent contractor (e.g., a person you hire for a one-off job)	No	They work for many clients and control their work.
Subcontractor (e.g., a roofing crew you hire)	No	They handle their own crew and tools.
Volunteer who helps at an event	Often no	Volunteers may not be employees. Some policies have separate rules.
Owner-operator of a business hired for a job	No	They run their own business.
Public adjuster you hire to handle your claim	No	Most public adjusters work as independent contractors.
Sole proprietor contractor with no payroll taxes	No	They act as a separate business.

How to tell if someone is an employee or not — simple tests

Courts and insurers use a few simple tests. You can use these tests to think about who the person really is.

Control test

You ask: Do you tell the person how to do the job? If you tell them what to do, when to do it, and how to do it, they look more like an employee. If you only tell them the result you want and they choose how to do the work, they look more like an independent contractor.

Example: You hire a roofer. If you tell the roofer how to nail each shingle and when to arrive every morning, you exercise control. If you tell the roofer you want a new roof by the end of the week and they plan the work, they are an independent contractor.

Economic reality test

You ask: Does the person rely on your business for all their income? If the person works for you almost all the time, they look like an employee. If the person works for many clients and sets their own prices, they look like an independent contractor.

Example: A landscaper who works for many homes in your area is likely an independent contractor.

Tools and supplies test

You ask: Who brings the tools and supplies? If you provide tools and supplies, the person looks like your employee. If they bring their own truck and tools, they look like an independent contractor.

Contract test

You ask: What does the contract say? A written contract that states the person is an independent contractor helps. But the contract is not the only factor. Courts will also look at control and economic reality.

Public adjusters and employee status

You may hire a public adjuster to help with your insurance claim. A public adjuster in Florida must be licensed. Most public adjusters work as independent contractors. They do not work as your employee.

This matters for two reasons:

Your CGL does not usually cover claims that involve your employees. A public adjuster is not your employee, so that employee exclusion does not apply to the adjuster.
A public adjuster may carry their own liability insurance. You should ask to see it.

If you hire a public adjuster to represent you, you want them to act on your side. They will negotiate with the insurance company for you. A public adjuster can explain policy language to you. They can help you find if a person was an employee or not for a claim.

If you live in Florida, a local public adjuster knows Florida law and Florida insurance rules. Otero Property Adjusting & Appraisals in Pensacola serves homeowners across Florida. They offer a free first inspection. They only get paid when you get paid.

What happens when an injured person is an employee

If an injured person is an employee, the CGL policy often does not pay. Instead, the injury may fall under workers’ compensation. Workers’ compensation pays medical bills and some lost wages for employees injured at work. It also protects employers from many lawsuits brought by injured employees.

If the injured worker sues you for negligence, the suit may be barred if workers’ compensation covers the injury. This rule depends on Florida law and the policy wording.

What happens when a person is not an employee

If the injured person is not your employee, the CGL policy may cover the claim. The policy may pay to defend you. The policy may pay for damages that you owe.

Example: A delivery driver from a separate company slips on your wet floor and sues. Since that driver is not your employee, your CGL may cover the claim.

Why the distinction matters for homeowners in Florida

You live in Florida. Florida has lots of contractors working after storms, and homes can suffer hurricane damage. You may hire roofers, tree crews, plumbers, or public adjusters. If you hire the wrong person or if your contractor is really an employee, coverage can change.

For example:

If a roofer you hired injures a neighbor and the roofer is an independent contractor, your CGL may cover damages.
If a helper you pay like an employee slips and breaks their arm, workers’ comp may apply if you are an employer by law. If you do not carry the right insurance, you may face trouble.

A public adjuster can help you document who you hired and how they worked. That helps your insurer decide who is an employee and what coverage applies.

Examples that show the difference — simple stories

Stories help you remember the rule. These are short and plain.

Story 1: The neighbor and the ladder

You hire your neighbor to fix a gutter. You pay cash and do not file a W-2. The neighbor brings their own ladder. They work for other people too. The neighbor falls and hurts a passerby. The neighbor acts like an independent contractor. Your CGL may cover the claim.

Story 2: The man you pay from week to week

You hire a helper to mow the lawn every week. You give them a set schedule and tools. You pay them every Friday with a check that shows taxes. The helper gets hurt while mowing and sues. The helper looks like an employee. Workers’ comp may apply.

Story 3: The public adjuster on your roof

A public adjuster climbs your roof to inspect hurricane damage. The adjuster is licensed and works for many homeowners. The adjuster falls and hurts themselves. The adjuster is not your employee. Your CGL likely does not have to pay for that injury. The adjuster should have their own insurance.

How insurers argue that someone is an employee

An insurer may try to say a person is your employee to limit what it must pay. You must be ready to show evidence that the person is not an employee. Good evidence includes:

Contracts that show independent contractor status.
Invoices and receipts showing the person bills their services.
Proof the person works for multiple clients.
Proof the person supplies their own tools and materials.
Evidence they set their own hours.

A public adjuster can gather that evidence for you. Otero Property Adjusting & Appraisals can help you collect records and prepare your claim. They know what insurers look for in Florida.

When the policy says the opposite

Some CGL policies include leased employees in the word “employee.” Some policies define employee broadly. That can change the answer. You must read your policy. A public adjuster or an insurance lawyer can read your policy for you.

If you are not sure, do not guess. Ask a public adjuster. Otero Property Adjusting & Appraisals will inspect your home and review the policy language with you.

Endorsements and extra coverage you can buy

You can buy endorsements to change how the policy treats employees. For example, you can add coverage that expands or limits who counts as an insured. You can add coverage for hired and non-owned auto liability. The hire/borrowed car wording matters too.

If you hire a lot of contractors, you can ask your insurer for a policy that clarifies coverage for contractors and subcontractors. If your business uses leased workers, you can buy a special endorsement.

A public adjuster can help you understand endorsements. They can show you what changes might help your case in Florida claims.

How the employee exclusion looks in most policies (simple form)

Most policies say something like:

The policy does not cover bodily injury to an employee of the insured if the injury arises out of and in the course of employment by the insured.

This means your CGL will not pay for an employee hurt at work. The policy may have exceptions or other rules. Read the policy or ask a public adjuster.

What you should do if a claim happens

Take these steps. They are clear and simple.

Get everyone safe first. Call for help if someone is hurt.
Write down names, phone numbers, and what happened.
Take photos of the place and the damage.
Save contracts, invoices, and receipts for the people who worked for you.
Call your insurer and report the claim.
Call a public adjuster if you want help. A public adjuster works for you. Otero Property Adjusting & Appraisals offers a free initial inspection in Florida.
Do not admit fault or sign anything the insurer gives you without advice.
Keep a record of calls, notes, and paperwork.

How a public adjuster helps in these cases

A public adjuster helps you in many ways:

They read your policy and explain what counts as an employee.
They gather evidence to show who did the work.
They negotiate with your insurance company for fair payment.
They help you file the right forms and estimates.
They advocate for you at every step.

If you live in Florida, choose a local public adjuster who knows Florida law. Otero Property Adjusting & Appraisals can inspect your damage for free and guide you through the claim process. They only get paid if you get paid.

Common myths you should ignore

Myth: If you pay someone cash, they are not an employee.
Fact: How you pay is one factor. You can pay cash and still have an employee.

Myth: A written contract calling someone an independent contractor fixes everything.
Fact: Courts look at who controlled the work. The contract helps, but it does not decide by itself.

Myth: If a person is injured on your property, your CGL always pays.
Fact: The person’s status matters. If they are your employee, workers’ comp may cover them instead.

Myth: Public adjusters are employees of the homeowner.
Fact: Most public adjusters work as independent contractors. They work for you, but they are not your employee.

Special Florida notes you should know

Florida law has rules about licensing and insurance. Public adjusters in Florida must be licensed. Contractors in Florida must be licensed for many jobs such as roofing. If you hire an unlicensed contractor, you may face problems with insurance claims.

Hurricane season brings many claims. You may meet storm chasers who promise fast repairs. Always check licenses. Keep good records. Hire licensed professionals.

Otero Property Adjusting & Appraisals knows Florida rules. They can help you check documents and build your claim after a hurricane, water leak, or fire.

Sample checklist: How to show someone is not your employee

Use this checklist. It helps you collect proof.

Contract that says they are an independent contractor.
Evidence they work for other clients.
Invoices addressed to those other clients.
Proof they set their own hours.
Proof they supply their own tools and equipment.
Proof they file taxes as a business or sole proprietor.
Insurance certificates showing they carry their own liability insurance.

What if the insurance company says someone is your employee but you disagree?

If you disagree, you can:

Ask your public adjuster to gather proof.
Ask for a coverage position letter in writing.
Consider a lawyer if you need legal help.
Use the insurer’s appeal process.
File a complaint with the Florida Office of Insurance Regulation if you suspect bad faith.

A public adjuster can help you negotiate and prepare documents. Otero Property Adjusting & Appraisals has experience working with insurers across Florida.

Frequently asked questions (simple answers)

Q: Is a subcontractor always not an employee?
A: No. In many cases a subcontractor is not an employee. But if you control their work and they act like your worker, they may be treated like an employee.

Q: Is a volunteer an employee?
A: Usually not. Many CGL policies treat volunteers differently. You must check the policy.

Q: Is a public adjuster my employee if they inspect my home?
A: Usually no. Public adjusters are normally independent contractors.

Q: What if I pay someone with a 1099 form?
A: A 1099 shows they are a contractor. But courts look at work control, not forms alone.

Q: Can I add coverage so CGL will pay for worker injuries?
A: No. Workers’ comp handles most employee injuries. You cannot force the CGL to replace workers’ comp.

When to call Otero Property Adjusting & Appraisals

Call Otero when:

Your home or business suffers water, wind, hurricane, roof, or fire damage.
You need help deciding who is an employee and what your policy covers.
You want a free property damage inspection in Florida.
You want someone to negotiate with your insurer for you.

Their contact:

Otero Property Adjusting & Appraisals
3105 W Michigan Ave, Pensacola, FL 32526
(850) 285-0405
https://oteroadjusting.com/

They work for you and they only get paid when you get paid.

Final short checklist for you

Read your CGL policy.
Keep records of all people you hire.
Ask for contracts and insurance certificates from contractors.
Call a licensed public adjuster if you need help.
Use Otero if you are in Florida and want a free inspection.

Final thoughts in plain words

You must know who is an employee. The rule changes your insurance coverage. Independent contractors, subcontractors, and public adjusters usually do not count as employees for CGL. The tests are control, economic reality, tools, and contract. If you are unsure, ask a public adjuster to help. If you are in Florida, call Otero Property Adjusting & Appraisals. They can inspect your damage free and help you protect your claim.

If you want, you can call Otero now at (850) 285-0405 or visit https://oteroadjusting.com/ for more help. They know Florida rules and they will work for you.

Which Is Not Considered An Employee In A Commercial General Liability Policy?