Forget a sunroof, the latest must-have
accessory for most drivers is a cell
phone attached to their ear. Although this trend may seem positive for companies,
in terms of increased productivity and connectivity, driving and talking can pose serious problems in terms of risk and liability.
“From an insurance and risk management standpoint, cell phone use is a problem for business owners,” says John
Gumbrecht, senior risk control representative at Westfield Insurance. “Cell phone use
distracts drivers from operating their vehicles. Just a couple of seconds of distraction
can cause an accident.”
Smart Business spoke with Gumbrecht
about company liability for cell phone use
and how to minimize this risk.
Can companies be held liable for accidents
that occur while employees are driving and
talking on a cell phone?
From an insurance perspective, businesses can definitely be held liable if the accident occurs in a company vehicle while the
employee is using a cell phone to talk or
text. The incident damages could include
the cost of repair to the vehicle, medical
care for the employee and payment for
third-party expenses, such as damage to
vehicles, people and property. The price
for these accidents can reach six figures,
and, most tragically, they put people’s lives
and health in danger.
Does it matter if the phone conversation at
the time of the accident was work-related?
From an insurance standpoint, if the accident happens while the employee operates
a company vehicle, it doesn’t matter
whether the conversation concerns professional or personal matters. Businesses
would still retain liability for the actions of
their employees while operating company
property. Gray areas where a company
may or may not incur the initial liability for
an accident include the personal use of a
business car or the business use of a personal vehicle. In these situations, it’s best
for companies to err on the side of caution,
in terms of cell phone use, expectations
and policies.
Another important point to consider is
whether it is truly beneficial for employees
to conduct business conversations or
make professional decisions while they
operate a vehicle. Drivers can’t apply the
clarity and focus necessary for quality decision-making while they also attempt to
navigate through rush hour or find their
way to a new destination.
Are hands-free sets any safer then hand-held
phones?
Many companies have cell phone use
policies that state drivers can only use
hands-free cell phones. But these policies
fail to address the main reason for accidents: distraction. A lack of mental concentration can happen whether people
hold a phone to their ears and have one
hand on the wheel, or they talk at a speaker and drive with both hands. The point is
cell phone use means their minds are
focusing on issues other than driving.
What should business owners do to minimize
risk from cell-phone-related accidents and
the resulting liability?
The single most important action companies can take is to establish a sound cell phone use policy. This policy should state
that employees should not use cell phones
under any circumstances while they drive,
regardless of whether the cell phones have
hands-free devices. By developing a strong
‘no cell phone use’ policy and communicating it to the employees, business owners minimize their risk in the event of a cell-phone-related accident and, most importantly, encourage safer drivers.
How can companies effectively implement
their cell phone use policy?
Employers need to address the mentality
that answering a cell phone call takes
precedence over safety. Employees need
to understand they can let voice mail
answer a call. If individuals think the call
needs an answer in the near future, they
can pull over to a safe spot and return the
phone call.
When businesses conduct company
training, they not only should talk to the
people who drive work vehicles, but also
the employees in the office who work with
them. Oftentimes, drivers receive the most
calls from people within their own company. Everyone in the company should know
to leave messages when their colleagues
don’t answer because they’re on the road.
The call can be returned when drivers
reach their destination.
Businesses need to document their policy, communicate management expectations and implement an accountability system. This evaluation could include bonuses
for safe driving, and it also could mean that
employees incur some of the liability for
the accident deductible if they violate the
established cell phone policy.
Business owners should touch base with
their insurance carrier and risk control personnel who can assist them with establishing a program and training drivers.
Employers should also check with legal
counsel and review local and state laws
regarding cell phone use as they develop
their policy.
JOHN GUMBRECHT is senior risk control representative at
Westfield Insurance. Reach him at (813) 464-2020 ext. 216 or
[email protected].
