I worked in the telephone industry for 40 years.
What you need is a dual colour LED - one that has 2 wires with the red and green LEDs in parallel anode to cathode so if you apply a voltage one way, the red lights and if you reverse the voltage, the green lights.
This ensures that the LEDs are protected against over reverse voltage (they protect each other) and it does not matter which way they are connected - one or the other will light.
Connect this in SERIES with the phone (or phones) it may also be advisable to connect a 2 uF capacitor in parallel with the LEDs in order to prevent audio distortion. However, try it without the cap first.
However, first measure the current through the phone when it is off hook and check the LED data sheet to ensure that the current is not greater than the LEDs can handle. I don't think it will be but it would be best to check.
If the current is too high, connect a resistor in parallel with the LEDs to reduce the LED current to a safe level.