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Revise Your Cell-Phone Policies
To Protect Your Assets

The convenience of calling from the road can bring headaches for business owners.

While politicians may be wary of establishing public policies restricting or limiting cell-phone use, civil court decisions could help to force the issue. The potential for negligence suits stemming from accidents where cell-phone use is determined to be a contributing factor continues to rise. For a business owner, an accident involving an employee could expose the company to liability.

While making a sales call for his company, a stockbroker in Pennsylvania struck and killed a 24-year-old motorcyclist. Although the accident occurred outside normal business hours, the driver claimed he was making a sales call to a potential client at the time of the crash. Evidence that the company had a policy that its brokers were to make sales calls outside normal business hours opened the firm up to potential liability for the accident. The brokerage firm paid $500,000 to settle the case.

The degree to which a company encounters liability problems could be influenced by its policies regarding the use of cell phones by employees. Does your company encourage its employees to conduct business from their vehicles using a cell phone? Does the company provide cell phones to employees explicitly for this purpose? Such factors could come into play down the road if an employee is involved in an accident while using a cell phone.

Does Hands-Free Mean Worry-Free?
Efforts to reduce the risk of using car phones has focused largely on requiring hands-free cell phones. Hands-free phones do minimize the risk associated with dialing. However, available evidence indicates that placing calls is not the most important component of risk associated with cell-phone use.

A study in the New England Journal of Medicine showed no significant reduction of risk associated with hands-free devices, and concluded that the conversation was the primary distraction that increased the chance of an accident. Data collected by the National Police Agency of Japan revealed that 43% of accidents involving cell-phone use by drivers occurred when the driver was receiving a call, compared to 22% when the driver was making a call and 17% when the driver was engaged in a phone conversation.

Update Your Policies
In light of the evidence indicating the increased risk associated with cell-phone use while driving, as well as trends in legislative restrictions and the potential for liability difficulties, business owners should consider updating their policies to protect themselves before they encounter problems. Don't wait until legislation or your insurance provider requires a revision of your policies, or you find your company caught in a damaging lawsuit.

Hands-free devices can offer a short-term solution, but may not address the central issue of ensuring that drivers are operating company vehicles in a safe manner. The surest way to cover all bases is to mandate that employees wait until the vehicle is safely stopped before using a cell phone. Here are some recommendations that can facilitate implementation of such a policy.

  • Be sure that the company's policy regarding cell-phone use while driving is in writing and is understood by all employees.
  • Use a voice mail message that notifies a caller that the person they are trying to contact is driving in traffic and will return the call once they are able to safely stop the vehicle.
  • Provide training for employees concerning safe practices for pulling off a roadway.
  • Advise drivers to seek out populated, well-lit areas when looking for a place to pull over.
  • Recommend that drivers use rest areas if they prefer not to leave the highway to make a call.

Developing a Policy for Work-Related Cell Phone Use
Thomas Eynon, a national safety consultant on OSHA and EPA issues, suggests a few important things to consider when developing a cell phone policy.

  • Just how important are cell phones to your business?
  • Do they really increase employee productivity, or do they just offset some of the poor planning and inefficiencies that may exist in your business?
  • How many sales have hinged on having that cell phone in hand while driving?
  • How many business decisions have been made that could have just as easily been postponed until you or the employee got to the office?
  • Are cell phones vital to your business success?
  • Are the liability risks worth the rewards?
  • How much risk exposure are you willing to take?

If cell phones are not vital to your business, consider a policy that totally bans their use while driving. If they play a key role in your business success, you may want to adopt a policy that establishes guidelines for their use.

Whatever policy you establish, it needs to be clear and specific. Policies allowing cell phone use should clearly spell out how and when the cell phone can be used. For example, your policy may state that cell phones can only be used when the car is legally parked and the engine is off. Another option is to require the phone to be off while driving and forwarded to a voice mail message system notifying callers that the person they are trying to reach is driving and will return the call once they are able to safely stop and park the vehicle.

Whatever your policy regarding cell phone use while driving, be sure it is in writing, and make sure it is reviewed and understood by all employees. During the review process it is advisable that employees be given a copy of the policy. Firms may also want the employee to sign an acknowledgement that they have read and understand the company's cell phone policy. Any policy must be backed up with enforcement and disciplinary procedures.

A policy that is clear, communicated and enforced can go a long way in avoiding negative litigation and further promote a safe working environment for your employees.