Our law firm routinely receives calls from Kansas business owners inquiring about their liability for serious auto accidents where their employee is at-fault while engaged in company business. Juries throughout the country have been awarding motor vehicle accident victims massive judgments in cases where an employee causes catastrophic injuries or wrongful death in auto accidents while talking or texting on a cell phone. An employer that issues a company phone to an employee to use to conduct business is particularly vulnerable to liability for injuries caused by an employee’s distracted driving.
For example, a Florida jury awarded $21 million to the family of a wrongful death victim against an employer whose employee collided with the other vehicle while engaged in a sales call for the company. The company neither directed her to make the call while she was driving nor to even use her cell phone but also had no company policy that prohibited cell phone use while driving. This is just one of a number of massive verdicts against companies based on an employee car accident while using a cell phone. The issue of liability for injuries caused by employees involved in cell phone related car accidents has become so prevalent that twenty percent of all Fortune 500 Companies have implemented complete bans on cell phone use by employees during business hours.
While our law firm defends companies who face liability for injuries caused by the negligence of their employees, we know the best approach is to develop company policies and procedures that minimize exposure to such liability risks before they occur. If a company plans to issue company cell phones, it is imperative that the company takes clear steps to prevent cell phone use while driving. Some measures that can help reduce a company’s exposure for cell phone related accidents by its employees include:
No Company Cell Phones: If it is not essential to issue company cell phones, a company can reduce its potential liability by not issuing cell phones to its employees. If company cell phones are issued, then it is essential to develop elaborate and carefully articulated rules concerning when and how the cell phones may be used. Employees should be asked to sign a form indicating they are aware of the policy and understand the disciplinary measures that may be faced if the rules are violated.
Written Policy Limiting Personal Cell Phone Use: The company should have a written policy clearly prohibiting ALL cell phone use while driving during company hours or while performing company business after hours. A warning should appear on the cell phone and in an obvious place within all company vehicles.
The business law attorney section of our practice is aware that a one-size fit all policy is not appropriate for all businesses, but a company must have a risk management policy for this growing business liability risk. The policy that the company implements to avoid liability must be carefully considered to be effective. A case against International Paper Company settled for $5.2 million when its employee rear-ended another vehicle while talking on his cell phone. This case is particularly noteworthy because the employee violated a company policy limiting use of a cell phone while driving to hands free use only.
Our Kansas business law attorneys can advise you regarding your potential liability exposure and conduct a risk assessment including recommending policies to avoid liability for injuries caused by your employees including cell phone related auto accidents. Call us today to schedule a free initial consultation.