Smart Solutions Category: Insurance/Surety Bonding

CNA Explains How to Avoid Negligent Entrustment

“Negligent entrustment” can stem from employees driving company-owned vehicles, their personal vehicles, or other vehicles on company business. Employers have a responsibility to know if an employee has something in his or her driving background that creates a risk to others. Negligent entrustment implies a company knew or should have known that it put an unsafe driver behind the wheel of a vehicle and allowed that employee to drive on behalf of the company. (CNA is an MCAA benefactor sponsor.)

A party injured by the company driver must generally prove five elements to establish liability in a lawsuit for negligent entrustment:

1. The owner company entrusted the vehicle to the driver or knew the person was driving on behalf of the company.
2. The driver was unlicensed, incompetent, or reckless.
3. The owner company knew or should have known that the driver was unlicensed, incompetent, or reckless.
4. The driver was negligent in the operation of the vehicle.
5. The driver’s negligence resulted in damages.

A driver may be judged incompetent if he or she is intoxicated, unlicensed, inexperienced, or has a record of reckless driving. Examples include the following:

• The driver does not possess a drivers’ license or is driving with a suspended license.
• The driver does not possess a commercial driver’s license when it is required for the type of vehicle being operated.
• The driver does not have experience or lacks training in operating a specific type of vehicle.
• The driver’s motor vehicle record (MVR) has several at-fault accidents or moving violations in the past few years.

Some jurisdictions use the Federal Motor Carrier Safety Regulations (FMCSR) to establish minimum competency for drivers. FMCSR is increasingly being referenced as a benchmark to measure the qualifications of an individual when driving is a regular part of his or her job duties. The FMCSR standards are also utilized by companies that are not under the authority of the Department of Transportation. In simple terms, FMCSR requires that a driver:

• hold a valid driver’s license;
• be physically qualified to operate the vehicle;
• be able to read and speak English;
• by reason of experience or training, be able to safely operate a vehicle; and
• by reason of experience or training, be able to determine whether the cargo is securely loaded.

Negligent Entrustment Example 1

On his way to work, an employee was driving a vehicle owned by Business A when he passed out from a medical condition. His vehicle struck several other vehicles and killed one of the passengers. Business A knew this employee’s license had been revoked because of his medical condition, but still allowed him to drive a company vehicle to and from work.

Negligent Entrustment Example 2

Driving his own vehicle on company business, an employee of Business B pulled out into the path of a motorcycle. The rider of the motorcycle was killed. The employee had been driving on business for Business B about five years and did not have a driver’s license. Business B never requested a copy of the employee’s license and never reviewed the employee’s MVR.

What You Can Do To Reduce Your Exposure to Negligent Entrustment

While the driver’s negligence in causing an accident is usually the primary issue, the investigation of negligent entrustment charges must focus upon two main issues: the company’s policies and the company’s actual practices. Were policies in place, and were the policies followed?

Your fleet management program must be followed and documented. Management must be held accountable for implementing the fleet management program. The following list includes areas that your company’s program should include:

• Driver selection procedures that include review of employee MVRs
• New employee orientation and training
• Ongoing driver training
• Post-incident or post-accident review and training
• An enforced policy limiting driver distractions, such as cell phone usage and texting
• A drug and alcohol testing program
• Adherence to local, state, and federal laws
• A strictly enforced, with no exceptions, disciplinary procedure for violations, which includes revocation of driving privileges

To help avoid a negligent entrustment situation, your fleet management program needs to include:

• reviewing the MVRs for all drivers, at least on an annual basis;
• removing the employee from driving positions if he or she develops an unacceptable driving record; and
• ongoing training of drivers on safe driving behaviors.

School of Risk Control Excellence (SORCE®)

CNA offers educational courses to help policyholders improve their fleet risk management:

• Driver Selection
• Distracted Driving
• Drug and Alcohol Testing
• Regulatory Requirements of Commercial Fleet Ownership

Additional tools and resources from CNA are available to help reduce auto and fleet risks at www.cna.com/driverperformance.

For more information, visit www.cna.com/riskcontrol. MCAA thanks CNA for being an MCAA benefactor sponsor.

The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured.

You cannot eliminate the possibility of business disruptions—but you can prepare for them. Whether the cause is a storm, a cyberattack, or another unexpected event, a sudden disruption could affect your organization at any time. To grow and thrive in an uncertain risk environment, your business needs preparation to absorb, adapt, and be resilient to disruptive events. CNA, a benefactor of MCAA23, offers a series of short podcasts (about 15 minutes each) on risk and resilience.

Listen to CNA’s e-Talks series for tips and resources that will help your business thrive: https://www.cna.com/web/guest/cna/microsite/risk-control-e-talks/welcome.

Season 1: Resiliency

This business resiliency series addresses how natural and manmade catastrophes, pandemics, and civil unrest create uncertainty, complexity, and challenges that unfold in real time. Episodes explore the resilient mindset of firms that survive unprecedented events, innovative strategies to sustain operations, and how to make informed decisions in times of uncertainty.

Season 2: Income

In the second season, episodes discuss business income, with a focus on demystifying this complex topic. Topics include selecting the right coverage to be prepared for disruption, restarting business after a disruption, and how to handle the most common resiliency issues that businesses face in the current environment.

For more information, visit www.cna.com. MCAA thanks CNA for being a benefactor of MCAA23.

Manual material handling is the largest single cause of lost workday injuries in construction. One out of every four work injuries happens because someone lifted, carried, pushed, or pulled something the wrong way or lifted beyond his or her capacity.

Workers should be trained on proper and safe material handling techniques either manually or by using mechanical means. The use of correct handling techniques is one of the ways to help reduce injuries.

Injuries

The most useful part of your body in handling materials safely is not your back or legs, but your head. Untrained workers often do the job the hard way and soon get tired, which leads to possible injury. The following are some key potential injury areas that can occur when material is improperly handled.

Back Pain

Back pain, especially low back pain, is second only to colds and other respiratory problems as the leading cause of lost time on the job. Many workers suffer from low back pain, much of which results from improper handling of materials.

Fatigue is the most common cause of back pain, resulting from doing heavy, repetitive jobs for an extended period of time with the body in an unnatural position. It also can result from light jobs where the body is not in a normal position, such as bending over a low bench or desk. A short warm-up session before beginning a heavy task and occasional stretch breaks can help avoid fatigue.

Sudden, acute pain from a muscular strain may often be easily treated. Don’t ignore any form of back pain. Seek medical advice and treatment as soon as possible.

Hernia

A hernia is caused by a weakness in the abdominal wall which ruptures, pushing a part of the abdominal contents through the wall, causing a bulge or lump. While most common in males, women too may suffer hernias. Hernias do not only affect workers in heavy industry, as most think. Any weakness in the abdominal wall is susceptible to a hernia when unsafe lifting habits cause overstretching of the abdominal muscles.

Strains

Improper material handling techniques can cause strains in other areas than the back. Strains to hands, wrists, arms, neck, shoulders, and legs are also common. They too can be prevented by using proper material handling methods. Continuous straining to any of these areas can lead to more serious problems.

Protecting Yourself

When you must manually lift an object, consider the following general lifting suggestions:

• Size up the load. Seek assistance if you think you need it.
• Get close to the load, with one foot alongside the load, and one foot behind it for balance. Get a firm grip on the object, with your palms, not your fingers.
• If possible, squat to the load, keeping your back straight, not necessarily vertical, just straight.
• Draw the load close to you, with the weight centered over your feet. Test to see that it’s not too heavy.
• Lift by straightening your legs, avoiding quick, jerking motions. Your legs should provide most of the power to lift, not your back.
• Avoid twisting with a load, instead use your feet or shift to change direction with a load.
• When lifting above waist height, set the load down on a table or bench, shift your grip, and then lift again.
• Lifting comfortably is most important. Judge the most comfortable position for yourself.

Preparing for the Lift

• Stand comfortably as close as you can to the load, with feet apart for balance.
• If the load becomes too heavy or clumsy to lift on your first try, don’t attempt the lift again without additional assistance.
• If possible, squat to the load, keeping your back straight. Try to avoid bending.
• Wear gloves that provide a good grip. Grasp the load firmly with your hands, with your fingers beneath the load if possible. Test it first to see that it’s not too heavy.

Carrying the Material

Carrying objects not only exposes you to possible injury but can also pose a risk to other workers on the jobsite. Consider the following:

• Use two people, if needed, and agree in advance how a load will be moved.
• Don’t let the object obstruct your vision; be sure of where you’re going.
• Don’t twist your body to change directions; use your feet instead. Twisting with a load puts enormous stress on the spine.
• Check the corridors, floors, or stairs over your planned route. Check to see the surface is clean and in good condition.
• Carry any pipe, bar stock, or other long objects on your shoulder with the front end high.
• Never change your grip during a lift unless you can support the weight during the grip change.
• If you can’t make it as far as you thought you could, stop, put the load down, and rest.

Carrying Material Up and Down Stairs

Workers carry items up and down stairs many times a day. Some points to consider are as follows:

• Be sure handrails, even temporary ones, are in place.
• Check to see how adequate the lighting is even if the job is still under construction. Take extra time on stairways. Make sure there are no loose nails, cans of paint, misplaced claw hammers, or similar objects on the stairs to trip over.
• Walk with your knees and feet pointing outward at an angle while descending stairs, instead of walking with feet and knees pointing straight ahead. Going straight ahead with feet and legs puts unnecessary strain on the knees.

Placing the Material

Placing and storing the material properly is important. Consider these points:

• When possible place the material on tables, sawhorses, or pipe racks that are approximately waist height, thus not having to lower the material to the ground.
• Face the final resting spot for the load you’re carrying with your whole body. Do not twist the load into its final place.
• Don’t forget where your fingers and toes are. Allow enough room to place the load so you can move all of you out of the way. Put one corner of a box or similar item down first, so your fingers can be removed from beneath the load.
• Reverse the lifting motion by bending your knees and squatting down with the load, keeping it close to your body, again, without bending your back.
• Before leaving the item(s), test the item(s) for stability where placed.

Pushing and Pulling

While pushing and pulling objects is preferable to lifting and carrying, there is still potential for an injury. Consider the following:

• Push whenever possible instead of pulling.
• Push or pull at waist height and try to avoid bending.
• Be sure you can see over and around the material being moved.
• Avoid steep ramps whenever possible. On all ramps, back down.

Other Lifting Situations

Don’t stretch from the ground.

• When lowering an item from shoulder height, push against it first to test its weight and stability. Slide it as close to your body as you can, and hold the item close while lowering it.
• When lifting items from or to high places, use a safe ladder. Do not stand on boxes or other stacked material.
• Rounded objects, such as gas cylinders, drums, and small tanks, can shift suddenly, as their contents may slosh back and forth or the rounded surfaces may begin to roll. Be extra careful.
• Partner lifts can best be accomplished when two individuals who are about the same size pair up. Have lifting signals so you can both move in unison. Good communications is extremely important.

Storing Materials

Where and how material is stored affects both safety and the efficiency on a jobsite. Size things up first and plan ahead when finally storing the material. Instead of just putting material “here and there” on the jobsite, try to use logic as to where materials, tools, equipment, and other items should be unloaded and stored for safety and convenience.

Especially watch the storage of materials in tiers; secure various layers to prevent falling. That includes wood and bricks and skid loads of materials such as tiles, shingles, and plumbing supplies.

The unloading of building supplies can be one of the most dangerous tasks at the work site. Never allow new workers to do the unloading alone. Instead, someone with rigging and mobile equipment experience should supervise unloading and loading activities to assure materials are stored properly. Key suggestions are as follows:

• Store materials, equipment, and tools out of the way, in the most convenient location possible.
• Keep aisles and passageways—outside and inside—from being blocked by supplies. Stored materials must not block exits and emergency equipment.
• Used lumber, when stacked, should have nails removed first.
• Combustible/flammable materials should be stored in a manner that will minimize any fire potential. They shouldn’t be in the way of mobile equipment or in a place where workers might perform any hot work. All smoking should be prohibited. These materials should not be stored where they could possibly impede the exit of any workers in the event of fire. A fire extinguisher must be readily available.
• Scaffolds and work platforms must not be used to store or accumulate piles of material or debris. There should only be as much material stored as can be used by the immediate operations.
• Plan difficult storage moves well in advance. Always arrange stored material in a secure manner.

For more information, visit www.cna.com. MCAA thanks CNA for being a benefactor of MCAA 2017, providing the Final Program and cosponsoring the Dessert Party.

This article was adapted from CNA’s Risk Control Bulletin, “Material Handling on Construction Sites.” The information, examples, and suggestions presented in this material have been developed from sources believed to be reliable, but they should not be construed as legal or other professional advice. CNA accepts no responsibility for the accuracy or completeness of this material and recommends the consultation with competent legal counsel and/or other professional advisors before applying this material in any particular factual situations. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2010 CNA. All rights reserved.

What is the first thing that comes to mind when the word “safety” is mentioned in a meeting or on a jobsite? Perhaps you imagine superintendents reminding employees to wear their personal protective equipment (PPE). You may picture a checklist of all the necessary precautions to be completed prior to starting a job. It is often perceived that safety slows an operation down, when safety should be associated with profitability. In an Engineering News-Record survey, 63 percent of contractors believe safety has no effect on profitability.

Why Invest in Safety?

Safety impacts profitability in ways that too often get overlooked. Without an effective safety program, the following ramifications may occur:

• Insurance costs can sky rocket.
• Productivity can be lessened.
• Efficiency can lack.
• Corporate reputation can be damaged.
• Bidding opportunities can be fewer.

A study sponsored by the Construction Industry Work Force Foundation has shown proactive implementation of safety and training systems in construction firms results in a:

• 17-percent increase of productivity,
• 9-percent reduction in turnover and absenteeism, and
• a decrease in workers losing interest in their jobs.

How Can Safety Save You Money?

One way to have a direct effect on profitability is your workers’ compensation (WC) insurance cost. A factor used by insurance companies to develop the premium for WC coverage is called the Experience Modification Factor, or E-Mod. This is developed by the National Council of Compensation Insurance (NCCI), a U.S. rating and data collection bureau specializing in WC. Typically, if your E-Mod is 1.0 and your WC premium is $200,000, you would not see a difference in your premium.

To break it down, let’s say a company has a good safety record and has an E-Mod of 0.8. If that company’s typical WC premium is $200,000, it would pay $160,000, or 20 percent less. That saved $40,000 could help the company buy new equipment, pay better salaries, and bid more jobs. However, if a company has a poor safety record and an E-Mod of 1.4, its WC premium would be $280,000, or 40 percent higher. The loss of $80,000 impacts the ability to bid jobs aggressively as the contractor now has possibly lost the ability to bid on state or federal work. These entities want companies with E-Mods below 1.0, which shows a higher standard of job safety.

Another way to look at safety and its impact on company profits is the cost of a claim. Direct costs of claims include medical and compensation or indemnity payments. These are paid by the insurance company. Indirect or hidden costs include but are not limited to lost time of a supervisor investigating a claim, loss of efficiency due to breaking up a crew, and time for hiring a new employee.

Let’s look at this example. If an accident has direct costs of $20,000, the indirect costs can range from four to 10 times, or $80,000 to $200,000. Indirect costs come out of the bottom line of a company. Because they are not insurable, they have a negative impact on profitability.

Good contractor safety and performance records are no longer preferred—they are considered a necessity for survival. Not only is safety a smart investment, but good performance gives companies a competitive advantage.

For more profitability improving tips, check out www.cna.com/construction. MCAA thanks CNA for being a benefactor of MCAA 2016.

Take a look around your company. Chances are, your workplace has changed in the past 10 years. Your workforce has changed as well. Regardless of industry, the U.S. workforce is aging. The U.S. Bureau of Labor Statistics has estimated that 25 percent of the workforce will be age 55 or older by 2020. This aging workforce brings with it the potential for escalating workers’ compensation costs, particularly since older employees typically experience more severe workplace injuries and illnesses than younger ones.

One of the most effective ways to reduce these costs is through a commitment to workplace safety. A commitment to safety is the key to a successful workers’ compensation process and cost containment. A successful process creates a better work environment and improves productivity. A commitment to workplace safety makes your company an attractive place to work, helping you retain employees and reduce employee turnover.

Below are some workers’ compensation mitigation strategies that you should keep top of mind during the time of hire, during day-to-day operations, and when an injury occurs in the workplace.

Time-of-Hire Considerations

Make every effort to ascertain that new or potential hires are physically capable of handling the requirements of the job. A job interview provides an opportunity to gauge a potential employee’s safety commitment. Including a section on your company’s safety policies and procedures in employee orientation reinforces your safety culture from day one.

A new or potential hire should be mentally capable of understanding and consistently applying safety training, procedures, and protocols. Companies with safety in their DNA want to make sure they hire employees with the same mindset.

Understand that age, obesity, and co-morbidities will generally result in more time and treatment for injured workers to return to full duty after an accident. A more extensive transitional duty program may be necessary to mitigate off-duty status.

Day-to-Day Strategies

Build a safety culture. A safety-focused work culture attracts safety-minded employees. With a strong safety culture, both management and employees are engaged in the process and share responsibility for accident prevention and effective injury management.

Encourage collaboration and communication to promote safety as the priority. When collaboration and communication are encouraged, employees feel comfortable voicing their suggestions and concerns and may be involved in developing and revising safety procedures. If an accident happens, everyone knows what to do and how to report the incident.

Treat “near misses” as accidents. Conduct defect check processes and root cause analyses, and develop the best safety solutions for operational activities. Share knowledge. In states where it is permitted, inform injured workers and managers about which occupational medical providers in the area are available to treat work-related injuries.

When an Injury Occurs

Contact the insurance company as soon as possible after an occurrence. Prompt reporting assures that the necessary medical attention is provided and a return-to-work process is put into place. Claims reported to the carrier within three days of injury cost up to 20 percent less than claims reported outside that time frame.

Conduct a thorough investigation to determine what caused the accident and make workplace adjustments to prevent similar accidents. Carriers may need your support in validating the accident or to pursue subrogation against a third party. Don’t wait to complete this step before reporting to the carrier.

Maintain regular contact with the injured employee throughout the course of recovery. Management should accompany the injured worker for treatment and should make sure that the medical provider is aware of the availability of transitional or modified duty when the injured worker is capable of performing that duty safely.

For more information, please contact your local independent agent or visit www.cna.com.

This information is presented for illustrative purposes only and has been developed from sources believed to be reliable. CNA accepts no responsibility for the accuracy or completeness of this information. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2014 CNA. All rights reserved. Used with permission.

There has been much confusion about who is required to have a U.S. Department of Transportation (USDOT) number. Many contractors feel it’s only needed for truckers hauling for hire, which is not the case.

A USDOT number is required for a commercial motor vehicle (49 CFR Part 390.5), which is defined as any self-propelled or towed motor vehicle used on a highway in interstate and/or intrastate commerce:

• to transport passengers or property when the vehicle has a gross vehicle weight rating or gross combination weight rating, gross vehicle weight or gross combination weight, of 10,001 pounds or more, whichever is greater; or
• to transport more than eight passengers, including the driver, for compensation; or
• to transport more than 15 passengers, including the driver, without compensation; or
• to transport material found by the Secretary of Transportation to be hazardous under 49 USC 5103 and transported in a quantity requiring placarding under regulations prescribed by the Secretary under 49 CFR, subtitle B, chapter I, subchapter C.

The USDOT number serves as a unique identifier when collecting and monitoring a company’s safety information acquired during audits, compliance reviews, crash investigations, and inspections. The following 31 states have laws agreeing to the enforcement of the federal USDOT regulations: Alabama, Alaska, Arizona, Colorado, Connecticut, Florida, Georgia, Iowa, Kansas, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia, Wisconsin, and Wyoming. The other states have state-based USDOT regulations (similar to federal OSHA vs. state OSHA regulations). Many think that the USDOT number does not apply here, but lack of enforcement does not equal “not applicable.” It is a federal regulation, and it applies to all subject commercial motor vehicles.

Vehicles that require USDOT numbers must have a name and USDOT number on both sides of the vehicle’s power unit, in a contrasting color, and visible from 50 feet away when parked. Currently, there is no cost to register for a USDOT number. You can visit www.safer.fmcsa.dot.gov and select the “FMCSA Registration and Updates” link to register.

Real-World Examples

The law applies to every risk with a single power unit over 10,001 GVW; the misunderstood portion is that it applies to every combination of truck and trailer that exceeds 10,001 pounds. If the insured owns a small pickup truck but has a heavy trailer, the combined weight of the truck and the trailer’s listed weight affects whether the rule applies. Also, a single pickup truck can be considered to be carrying hazardous materials, thus triggering the USDOT number requirement, by carrying, for example, one 100-pound propane tank; a 55-gallon drum of pesticide, herbicide, or fertilizer; or some acetylene tanks.

Why Should You Care?

First, noncompliant insureds are open to large fines for even the first violation. Second, violation of these rules may be used against a noncompliant insured in lawsuits.

The USDOT released a new Compliance, Safety, Accountability (CSA) program for enforcement of the regulations, resulting in stepped-up enforcement. More information about the CSA program and resources are available at the website http://csa.fmcsa.dot.gov.

For more information, visit www.cna.com.

MCAA thanks CNA for being a benefactor of MCAA 2013.

Legal actions sometimes cast a wide net, drawing an employer into a claim by alleging that the use of a vehicle in the case was for business purposes. Business use can be alleged as the result of something as simple as storing some small tools in the automobile, taking the mail to the post office, or being on a cell phone call with the office.

While you cannot control this exposure totally in any operating business, you can attempt to manage the risk at an acceptable level. One of the foundations of risk management is that you cannot manage a risk until you have identified it. To that end, here are some tips to assist you in identifying and looking at options for managing the risk. Any of the following situations may create non-owned auto liability exposure:

• Salespeople who drive their own vehicles on company business
• An employee who goes to the bank for the company on his way home
• An employee who buys supplies or runs an errand for the company
• An employee who is asked by management to do company-related activity that requires use of the employee’s vehicle
• An employee who is reimbursed for driving his own vehicle to attend business meetings, visit customers, or pick up supplies or parts
• Volunteers who use their own vehicles when working for your organization

The best control is not to allow anyone to use a personal vehicle for company business. If this is not possible, consider taking the following steps:

• Review the individual’s motor vehicle record before he or she drives. Anyone with a driving record that does not meet acceptable criteria should not be allowed to drive a vehicle on behalf of the company.
• Annually require proof of liability insurance.
• Regularly inspect the vehicle used for company business.

If someone driving his own vehicle for company business has an at-fault accident, the company may have to pay for damages that exceed the limits of the vehicle owner’s auto liability coverage. Further, some personal auto insurance may exclude business use so that the company’s policy may be at risk for the entire claim. CNA recommends that employee drivers carry auto liability insurance with at least $300,000 combined single limits. (The employer should keep proof of this insurance on file.) Also, recommend the following to individual employees:

• Regularly inspect the vehicle used for company business.
• Keep in mind that the condition and appearance of the vehicle is a reflection on the company.
• Verify that the vehicle is maintained and in safe condition to be driven on the road.

Non-Business Use of Vehicles

Unassigned personal use of a company vehicle may occur when an employee asks to borrow or use a company vehicle. For example, the employee is moving something and wants to use the company pickup or van. Should you let the employee use the company vehicle? No. If the employee needs to use a truck for moving, the employee should go to a car or truck rental company.

Cell Phones

More than 80 percent of the nation’s 94 million cell phone owners use them while driving (at least sometimes). It is worth noting that:

• many states have legislation to regulate cell phone use while driving, and
• cell phone records can be subpoenaed to prove the employee was on the phone when an accident occurred.

In the past few years, cell phone usage has been an issue in several lawsuits, and employers may be held responsible if a worker causes an accident while talking on the phone.

So why aren’t employers more concerned about cell phone usage in vehicles? Interestingly, the distraction problem may not exist as much with two-way radios, which are as much a staple of contractors as cell phones, because those calls are usually much shorter. However, some states that ban handheld phones may consider two-way radios in the same manner, so you should check your state’s regulations on the use of two-way radios.

While there is no guaranteed defense against liability, developing appropriate policies, training, and enforcement mechanisms, such as the following, can help limit potential liability:

• Prohibit employees from using cell phones while driving on company time.
• Adopt cell phone safety guidelines, and focus on training and enforcement.
• Direct employees to comply with all state and local laws governing cell phone use.
• Require employees to pull over to the side of the road to take phone calls.
• Prohibit cell phone use in adverse weather or difficult traffic conditions.
• Prohibit texting, reading, or writing while operating the vehicle.

Each company should determine whether the benefit of employee cell phone use outweighs the risk.

To protect themselves, companies should consider establishing a written policy restricting any use of a cell phone incorporating some or all of the above suggestions and ensuring that employees read and sign the written policy. (MCAA’s Distracted Driving Reduction and Prevention Guide provides sample policy language and other information about the hazards, liability, and regulatory initiatives associated with distracted driving.)

After an accident involving, for example, driver A, an employee of your company, and driver B, one of the first steps that driver B’s attorney usually will take is to try to obtain the cell phone records of driver A. The attorney may attempt to prove negligence on the part of driver A to seek recovery of damages from you, the employer.

Responsibility for Punitive Damages

One of the issues that all fleet owners need to consider is that, depending on the state and circumstances of the claim, if gross negligence or other severe conduct is proven, the award from the court may include punitive damages. By law, several states will not allow your automobile insurance carrier to pay the punitive damages portion of an award. Based on the theory that punitive damages are meant to punish people for their “bad acts,” it is against public policy for someone to be protected from the consequences of their bad acts.

For more information, visit www.cna.com.

Global business insurer CNA, the Mechanical Contractors Association (MCA) of Georgia, and several other construction trade associations partnered with the nonprofit community revitalization group Rebuilding Together to celebrate the 123rd anniversary of Atlanta’s Carrie Steele-Pitts Home (CSPH), one of the nation’s oldest child-caring homes. On October 15, approximately 100 volunteers gathered for a day of major repairs to renovate and transform CSPH.

Since 2004, the CNA Foundation has partnered with Rebuilding Together to help improve homes and community centers of veterans and elderly, disabled, and low-income residents in Chicago’s most challenged neighborhoods. Rebuilding Together and CNA expanded this relationship to assist communities nationwide, with the help of volunteers from CNA’s construction partners representing the plumbing/ HVAC, roofing, electrical, and lawn/ landscape specialties.

Individuals representing Rebuilding Together, CNA, MCA of Georgia, the National Roofing Contractors Association, and the Land Improvement Contractors of America spent the day painting, upgrading electricity, providing plumbing and carpentry repairs, and enhancing the landscaping of two CSPH residential apartments. These critical modifications will help in the preservation and safety of the apartments while ensuring that CSPH continues to operate and provide its residents with the highest living standards.

“CNA and all of our construction association partners are proud to provide the elbow grease for these rebuild day renovations,” said John Tatum, vice president of construction for CNA. “The repairing of damaged roofing, replacing windows and doors, installing new bathroom facilities, flooring and interior walls will serve as a wonderful commemoration for all of the work and the strong impact CSPH has had on the children of Atlanta.”

CSPH is dedicated to the comprehensive care, education, and shelter of Atlanta’s children and young adults with the goal of fostering success and independence. Over 20,000 children have received educational services, transitional assistance, and residential care through CSPH.

“These residential buildings are a critical element of the services CSPH provides to our young adult residents who are preparing to transition into lives outside of this community,” said Evelyn Lavizzo, PhD, executive director of CSPH. “Here, our youth learn the value of independent living, while still experiencing a caring, family atmosphere—that many of them may not have had otherwise—that will better position them to succeed in adulthood.”

The celebration of the CPSH anniversary also marked the kick-off of the second annual Rebuilding Together Tradesperson of the Year campaign. Tradesperson of the Year is a national contest recognizing persons in the skilled-trades industry who are leaders in their trade and give back to the community.

For more information, please visit CNA at www.cna.com.

MCAA thanks CNA for being a benefactor of MCAA 2012, sponsoring the Final Program, and co-sponsoring the dessert party.