Cell Phones and Risk Management
Many countries, far less progressive than the United States, have banned cell phone usage while operating a vehicle. In the United States, each state enacts separate laws. When California ushers in the new cell phone law, effective July 1, 2008, the usage of cell phones while driving will be prohibited in most circumstances (hands-free will be ok).
From a risk management perspective, cell phones and vehicle usage occur in the following three scenarios.
1. Company owned vehicles
2. Employee owned vehicles used in the business
3. Rented vehicles used in the business
Depending on your business, all three scenarios may apply. Below are some ideas to consider implementing to control the risk of vehicles and cell phone usage. In addition, insurance is an important tool we use to help our client’s manage the financial consequences when an accident happens.
1. Require Hands-Free Devices Only
This is the law, so this is a “must policy”. You may want to go so far as to provide the hands-free equipment for the employee. Hands-free operation does not guarantee 100% safety but will provide remote workers with less distraction if they must use their cell phone on the road.
2. Warnings in Company Vehicles
Putting notices in all company vehicles reminds employees that the main function of the vehicle operator is to arrive safely at a destination. Options to the hands-free policy could require either passengers being responsible for handling the cell phone or the driver pulling off the road before using their cell phone.
3. Provide an Answering Service or Forwarding Option
This option gives remote workers the ability to have calls forwarded to another individual or to an answering service.
4. Shut It Off
It may be that you do not want any cell phone usage while operating a vehicle. To some, this may not seem practical, but, from a risk management standpoint, it is the best policy.
Whatever you decide, now is the time to do something about this exposure. In-vehicle cell phone usage does increase the chance of an accident. If you do not have a written company policy addressing the use of cell phones while operating a vehicle on behalf of the business, now is a good time to change your company’s handbook. Businesses operating in more than one state, or outside the United States, should be aware of the local laws.
Changing the way of using your cell phone will become habit over time. Not changing opens up a host of problems. Get on board with this early, so when July 1st rolls around, everyone in your business has new habits when using their cell phone.