an alternative suitable waterproof and colored dressing?

SQF code states,

11.3.1.3 Personnel with exposed cuts, sores, or lesions shall not engage in handling or processing exposed products or handling primary (food contact) packaging or touching food contact surfaces. Minor cuts or abrasions on exposed parts of the body shall be covered with a colored, metal-detectable bandage or an alternative suitable waterproof and colored dressing.

What is considered an alternative option?

It might depend on the issue. As it includes cuts, sores and lesions, a bandage or band aid / plaster might not always be needed or may need something else to keep it on.

Typically in the UK we'd use a band aid / plaster and, if on the hand, we'd also use a glove. It used to be common to use a "finger stall" but I've seen these massively fall out of favour in my time in the food industry because, let's face it, a glove works better and is a bit more hygienic.

So basically I assume they just mean something like that?

Vague, as all GFSI stuffs are.   So basically anything waterproof and colored will meet their criteria.   (Imho they're saying glove without saying it tho.)   

When we've had someone with any major skin opening (had a guy with hand stitches once), and we did the metal detectable band aid, and a glove over that, just like stated above.

Our alternate is a MD or regular band-aid with or without a finger condom and gloves over that.