ADDexec summary: Danger Ahead — Entrepreneurs, don’t let employees talk and drive in Entrepreneur magazine, May 2007.

Full article: Cell phones are useful, but pull over if you need to use the phone while you’re driving. Same for your employees — whether or not they have attention deficit disorder. Why worry?  For starters:

Under the doctrine of vicarious responsibility, employers may be held legally accountable for the negligent acts of employees committed in the course of employment. Employers may also be found negligent if they fail to put in place a policy for the safe use of cell phones.

– Insurance Information Institute, February 2007.

The science now verifies that cell phones impair driving performance. States and cities across the US are now prohibiting or limiting cell phone use by drivers. And the courts are awarding ample damages for injuries caused by drivers who were talking on cell phones at the time of an accident. What’s the dollar risk?

In a suit against lumber wholesaler Dykes Industries in December 2001, a Miami jury awarded $21 million to a woman who was severely injured by one of the company’s salesmen involved in an accident while he was talking on his cell phone.

In Pennsylvania, a Smith Barney stockbroker–who was talking on his cell phone on the way to a non-business dinner–hit and killed a 24-year-old motorcyclist. Testimony revealed that the firm expected its employees to make “cold calls” on personal time. The plaintiff alleged that the firm was negligent because it encouraged employees to use cell phones without providing training on the potential hazards and risks.

Smith Barney settled with the victim’s family for $500,000.

And in an action involving a state employee who was allegedly talking on her cell phone when she hit a tourist, causing permanent brain damage, the state was found partially liable and paid $2.5 million.

– California CPA, May 2003.

And of course, those are just the monetary risks — never mind the actual injury to persons and reputation.

Read the Insurance Information Institute article for detailed and current information about US and state laws on corporate cell phone liability.

This entry was posted on Tuesday, May 1st, 2007 at 10:25 pm and is filed under Articles, In the News, Tip of the Day. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.