Your Employee’s Driving Behavior Could Prove Costly for You

By now, everyone knows that using a cell phone or texting while driving could increase your risks of an accident. However, every employer should also know that when an employee engages in such behavior and causes an accident while on duty, he can be held liable for any injuries or fatalities arising from such an accident. From Virginia to Massachusetts, juries are finding more and more employers liable in fatal or serious accidents involving their on-duty employees.

Take a look at these examples from around the country.

• In 2007, International Paper Co. settled a personal injury lawsuit for $5.2 million, after an Atlanta woman was seriously injured in an accident caused because an IPC employee had been using a company-issued cell phone.
• In 2004, a Virginia law firm was found liable for an accident caused by one of its lawyers. The accident killed a teenager. Later, it was found that the lawyer had been conducting work-related business on his cell phone at the time of the crash.

These are just two examples of what is growing to be a nationwide trend. The bottom line is that if your employee causes a crash either while driving a company car or talking on a company-issued cell phone at the time of the crash, you as an employer could be held liable for damages arising out of the crash.

Asset Protection Can Help Mitigate These Liability Risks

Look into implementing a “no cell phones while driving” policy in your workplace. Network of Employers for Traffic Safety is an organization that provides resources to employers who want to phase in a policy like this in the workplace. You will need all the help you can get. A “no cell phone” policy tends to be extremely unpopular with employees.

Reduce the pressure that you may place on employees to constantly be in touch with the office. Many employees say they feel under pressure even when they are off duty to be constantly in touch with the office on the cell phone, even while they’re driving.

Lastly, look into the benefits of an asset protection program. Unfortunately, enforcing your workplace safety rules could be difficult when your employee is alone in a company-issued car. If an employee causes an accident while he’s on the job, it could have devastating financial consequences for you and expose your assets to plaintiffs.