THE LOSS UNFORESEEN (The Fourth in a Series)

In our last issue, we discussed some of the problems that can develop from the use and misuse of cell phones. In this issue, we will examine the employer’s culpability in an employee's usage of the cell phone, and what you can do to minimize it.

In recent years, employers have been brought into lawsuits because they have supplied or paid for the cell phone. One law firm was sued when an attorney in their firm was in an accident while using her cell phone. The argument that was presented in court was that the law firm supplied the phone, the attorney billed the time she was on the cell phone to her client and those billings were expected and even demanded of her by the firm, so the firm was partly responsible.

We do not advocate that cell phones should be done away with. What we suggest is that if cell phones can be a factor in your business in either a positive or negative manner, then your organization should have a cell phone usage policy in place. Many of the examples we have been discussing are covered or partly covered by your insurance policies. Yet with the proper exercise of risk management techniques, your organization can prevent them from happening or limit the effect such events will have on your organization.

Ban all cell phones usage in areas where they might be used inappropriately. Inform your employees, students, patients and business invitees of the ban. Incorporate the ban in contracts, employee handbooks and school discipline codes. By broadcasting the ban, you have empowered members of your organizations to enforce it. Post signs in places where the ban is active stating: "Due to the photographic capability of cell phones, all cell phones are prohibited in this area."

This accomplishes two things. First, it informs those people using the space that cell phones are not allowed and why they may pose a danger. People are more likely to recognize that a cell phone is inappropriate and ask someone to put it away if there is a sign reinforcing the concept right in front of them. Second, it also takes away any excuse of ignorance on the part of someone using the phone. A sign empowers the people in that space and your employees to take action.

A properly designed cell phone usage policy can also help protect you in the event that something does happen.  At a minimum, your stated policy should incorporate the following messages:

1. The phone is being provided to you for business purposes only.
2. The user must comply with all traffic or driving-related safety regulations
3. A client or customer may not be billed time for any conversation held on the phone while the employee is driving.
4. It is the responsibility of the user to find a safe place to hold a conversation should it be necessary to take an important call or send a text or e-mail message.  Do not endanger yourself or others while doing so.
5. The phone or any handheld device supplied to you by the company is the property of the company including any and all information or data on it.
6. Only that information specifically applying to your position may be loaded on to your device.  This information will be designated by the company.
7. Any and all add-ons, programs or expansion devices must be approved by the company.

An organization can prevent accidents, misuse, and other problems with these technological wonders by setting the guidelines for their proper usage and informing their employees of them. You can also help yourself by taking these basic precautions to protect everyone. It is going to sound a lot better in court if something does happen, and you are able to tell the judge or jury that "you did what you could" when asked what steps you took to protect the claimant, than if your only answer is "nothing"!

-- Terrence P. Coughlin, CPCU, ARM, AIC

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