How Does Your Company Handle Distracted Driving

Transcription

1 How Does Your Company Handle Distracted Driving? Rick Cates, CDS, CDT, Vice President Workforce Strategies, Marsh Fleet Safety How Does Your Company Handle Distracted Driving Rick G. Cates CDS, CDT Vice President, Marsh Risk Consulting Burlington, NC 1

2 3 things you will leave this session with: Understand fully the impact of distracted driving what is the research showing? How to educate your leadership on the components needed to reduce loss and injury. How to improve the safety of your associates, whether in a company or personal vehicle. Distracted Driving A Loss Epidemic Vehicle collisions -#1 cause of workplace fatalities and a leading cause of workplace injuries. 24% of all fatal occupational injuries. Averaging $150,000 in injuries. Distraction-affected crashes account for: 10% of all fatal crashes. 18% of all injury crashes. Ages most often involved. Source: NHTSA Traffic Facts 4 June 27,

3 Distracted Driving A Loss Epidemic Majority of the recent nuclear verdicts (large auto liability settlements) involved some form of distracted driving. November 2011 new rules implemented restricting the use of hand-held phones while operating commercial motor vehicles. 5 June 27, 2017 What Is Distracted Driving Distracted driving is any activity that takes your eyes off the road, your hands off the steering wheel, or your mind off your primary task of driving safely. 6 June 27,

4 6/28/2017 Three Main Types of Distractions 7 June 27, June 27, 2017 Source: Erie Insurance 4

5 Top Ten Forms of Distractions 1. Fatigue/inattention/daydreaming 2. Personal communication devices (talk/text) 3. Exterior objects, persons, or events 4. Vehicle occupants 5. Items introduced into the vehicle (GPS, music, paper) 9 June 27, % 12% 7% 5% 2% Source: Erie Insurance Top Ten Forms of Distractions (cont.) 6. Eating and drinking 7. Adjusting audio or climate control 8. Using vehicle integrated devices (seats, mirrors, etc.) 9. Interacting with pets or removing insects 10. Smoking 2% 2% 1% 1% 1% 10 June 27, 2017 Source: Erie Insurance 5

6 What We Recognize Via In-cab Video Distracted driving observed in about 20% of risky events captured. 11 June 27, 2017 Source: Lytx Impact of Distracted Driving Your Exposures Vicarious Liability: When the employer is held liable for harm done by an employee acting within the scope of employment. Negligent Hiring: If the employer failed to properly train the employee on avoiding distracted driving, failed to properly supervise the employee, or failed to perform adequate research when hiring the employee, the company could be liable. 12 June 27,

7 Impact of Distracted Driving Your Exposures (cont.) Negligent Entrustment: If the employer had reason to know that the employee would likely be driving while distracted, the company could be liable. If the employee regularly made calls or texts while on the road, for example, as a typical method of conducting business, and then one of those times caused a crash, the company could be found to be at fault. 13 June 27, 2017 Impact of Distracted Driving Your Exposures (cont.) Dangerous Instrumentality: Similar to the previous doctrine, this says basically that as long as the employee caused an accident, the employer is to blame. Reputational Risk: Your company s image is at risk when involved in such a claim. Fines: FMCSA commercial drivers employer fines $11,000 and driver fines $2, June 27,

8 Impact of Distracted Driving Legal Exposures (nuclear verdicts) 2003 Stockbroker making cold calls while operating personal vehicle ($500K) Paper manufacturer associate using a cellphone while driving ($5.2M) Truck driver checking messages on cellphone ($18M) Cable company technician texting while driving (undisclosed settlement in excess of eight figures) Soft drink sales representative speaking on hands-free phone ($24M) Large retailer s fatigued truck driver rear ends a van in a construction zone ($??). 15 June 27, 2017 Measures to Eliminate Distraction Related Loss or Injury Risks Associated With or Without Written Policies No policy demonstrates no controls. Studies show nearly 86% of companies have policies regarding mobile device use while driving, although few, if any, have procedures in place to enforce them. Training and accountability are a must! 16 June 27,

9 Measures to Eliminate Distraction Related Loss or Injury Distracted Driving Policy Elements Top 10 distractions. Training. Operations compliance and support. Monitoring compliance. Must be in a position to Walk the Talk (comply with your distracted driving policy)! 17 June 27, 2017 Measures to Eliminate Distraction Related Loss or Injury An Alert Driver Is a Safe Driver An average distraction consumes 4-5 seconds (dial phone, read text message, program GPS, read a short paragraph, etc.). It requires approximately the length of a football field to stop a vehicle traveling at 65MPH, which equates to approximately 4 seconds under ideal conditions. 18 June 27,

10 Measures to Eliminate Distraction Related Loss or Injury An Alert Driver Is a Safe Driver (cont.) Proven fact humans cannot multitask! Driving requires your undivided attention. Space + Focus = Collision Free Driving 19 June 27, 2017 Measures to Eliminate Distraction Related Loss or Injury How to Establish a Good Defense Implement a comprehensive distracted driving policy. Adjust your operations to conform with your policy. Train drivers, managers, and staff on your policy. Persuade drivers to pledge to drive distraction free. 20 June 27,

11 Measures to Eliminate Distraction Related Loss or Injury How to Establish a Good Defense (cont.) Implement processes which monitor adherence to your policy. Comprehensive behavioral driving training. Reinforce desired behaviors. Consider the use of advanced technologies. Eliminate the risk! 21 June 27, 2017 How to Improve the Safety of Your Employees Advanced Technologies Cell Blocking Devices We can t count on people always doing the right thing, What about cell blocking technologies? 22 June 27,

12 How to Improve the Safety of Your Employees Vehicle Telematics Capturing vehicle performance and movement data. Means of monitoring driver behaviors. Harsh braking/rapid deceleration, stability control, high speed cornering, evasive maneuvering, etc June 27, 2017 How to Improve the Safety of Your Employees Advanced Technologies Event Recording Devices You can t manage what you don t measure. 11 companies showing decline in Once captured on video and coached, distracted driving over the last 14 behavior change is dramatic and months is easily using videobased solution. measured. 24 June 27,

13 How to Improve the Safety of Your Employees Advanced Technologies Advanced Driver Monitoring Systems Monitors eye movement. Identifies distraction prior to a triggering event. Seat vibration, audible sound, video capture, immediate notification. 25 June 27, 2017 Source: Seeing Machines How to Improve the Safety of Your Employees Advanced Vehicle Technologies Stability Control roll-over prevention. Lane departure warning. Adaptive cruise control. Forward collision avoidance. Blind spot monitoring. 26 June 27,

14 How to Improve the Safety of Your Employees Customized Safe Driver Training Program Your people, vehicles, exposures, and past experiences. Classroom instruction coupled with in-vehicle exercises. Orientation, on-going, post-event remedial, and annual recertification training initiatives. 27 June 27, 2017 How to Improve the Safety of Your Employees Driver Awareness Resources National Safety Council Focused Driver Challenge. Cell phone policy kit. Posters. Fact sheets. Infographics. Webinars. Newsletters. 28 June 27, 2017 Source: National Safety Council. 14

15 How to Improve the Safety of Your Employees Make It Personal Letter home to families. Get their children involved. Company shirts. Safety calendar. 29 June 27, 2017 Your 3 Session Takeaways Distracted driving is a leading contributor to vehicle collisions. A strong distracted driving policy is needed that can be engaged/managed/reinforced. Integrate technology and training to foster your vehicle operator s safety. June 27,

16 How Does Your Company Handle Distracted Driving Questions 31 June 27, 2017 Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer, and Oliver Wyman. This document and any recommendations, analysis, or advice provided by Marsh (collectively, the Marsh Analysis ) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, tax, accounting, or legal advice, for which you should consult your own professional advisors. Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. Marsh makes no representation or warranty concerning the application of policy wording or the financial condition or solvency of insurers or reinsurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Although Marsh may provide advice and recommendations, all decisions regarding the amount, type or terms of coverage are the ultimate responsibility of the insurance purchaser, who must decide on the specific coverage that is appropriate to its particular circumstances and financial position. Copyright 2017 Marsh LLC. All rights reserved. MA