The use of portable electronic devices (PEDs) such as cell phones, smart phones, laptops and GPS navigation systems has become a routine part of doing day-to-day business. Texting, e-mailing, talking and navigating are just some of the uses of these devices for conducting business in this fast paced, highly productive world in which we live.

While employers may be aware of the obvious benefits of allowing employees to use portable electronic devices (PED) to conduct business while driving, they may be unaware of the significant liability risks associated with PED use while driving.

Currently, there is mounting evidence supporting the dangerous link between PED usage and car accidents. Researchers across the country have found response times and attentiveness while using a PED are as low as those of drunk drivers. It is estimated that one in four crashes (1.6 million every year) involves a driver talking or texting on a cell phone.¹

As a result, if you have employees driving on company time, you need to be aware of your PED use exposure and take the appropriate steps to mitigate your risks. While there is no guaranteed defense to liability, developing an appropriate portable electronic device policy, training employees about the dangers of using these devices while driving; and enforcing policies with signed written acknowledgments from employees can all help to limit an employer’s potential liability.

In the policy, beyond setting clear-cut rules limiting portable electronic device use while driving, offer suggestions such as informing clients of driving schedules to avoid calls while on the road, putting devices in the glove box or out of sight while on the road, turning phones completely off while on the road, pulling over to place or receive an important call or asking a passenger to handle device usage. Be sure to emphasize that while productivity is certainly important, more important is their safety and the safety of others on the road – safety that is neglected when using a portable electronic device.

Even with a comprehensive portable electronic device use policy, (courts may still hold employers responsible for any harm caused by employees while on company business), so it is important to ensure that your policy is being upheld and enforced. Be clear about the importance of following the policy and follow through with consequences if employees are found to be disobeying it.

Employers should always be cognizant of their state’s laws and require employees to observe those regulations regarding cell phone or portable electronic device use while driving. Include the current state law in your policy and require employees to review and re-sign it whenever the law changes. While state laws do not directly address employer liability, they have the potential to increase employer exposure for cell phone-related accidents. For more information about state requirements, access the Governor’s Highway Safety Association Web site at
www.statehighwaysafety.org.

In addition to updating your company portable electronic device policy and training program, employers should also review their insurance policies. For help assessing your company’s risk regarding these issues, sample resources, or for assistance in developing a portable electronic device policy, contact Sonya Conner, healthcare risk management consultant at BB&T Insurance Services or Clay H. Chambless.

¹National Safety Council 2010
²NHTSA’s report “What Do Traffic Crashes Cost? Total Cost to Employers by State and Industry” (1996)

BB&T Insurance Services, Inc. is an endorsed provider of product liability insurance for NATM. For more information, contact Clay Chambless at cchambless@bbandt.com or Cara Sandlin at csandlin@bbandt.com of BB&T Insurance, toll-free (888) 646 6332 or (706) 278-1149, or NATM Headquarters at (785) 272-4433.

BB&T Insurance Services, the nation’s sixth largest insurance broker, is a wholly owned subsidiary of Branch Banking and Trust Company. Founded in 1922, it operates more than 100 insurance agencies in North Carolina, Virginia, Georgia, South Carolina, Maryland, West Virginia, Tennessee, Florida, Kentucky and California.