Fraud. We are hearing about this more and more as inflation and unemployment rise. Fraud is a serious subject and should not be taken lightly. It affects all of us, both individually and, at times, professionally.
In this article, I will address the professional aspect of fraud and what we can do to minimize its impact.
From time to time, ICC receives claims where the insured suspects a claimant is attempting to make a fraudulent claim. We take this matter seriously, as it can cost thousands to hundreds of thousands of dollars to settle and defend if the claim goes to suit.
If a claim is fraudulent, it is not always easy to prove. So, what can you do to prevent or uncover fraud?
- The first thing to do is make your employees aware of it. Anyone that was working when the incident occurred may be able to provide additional information about what happened.
- Write up an incident report. In the report, you should include the following information:
- Date and time of the event
- Name of the claimant and contact information
- A list of any employee witnesses, as well as any patrons who may have been a witness, along with their contact information
- Notes about what the claimant was wearing, including clothes, shoes, glasses, etc.
- If there is footage of the event, it is important that you SAVE THE VIDEO, even if you think you are not at fault.
- If business personal property is involved (a piece of broken glass, broken chair, olive pits, etc.), you should save the property and never throw it away.
- Take photos of the area in question. With cell phones at our fingertips, taking immediate photos is easier than ever.
- Report the incident immediately to your agent and ICC, even if you are not at fault. By doing this, ICC will be ahead of the game if an attorney contacts you later.
Even if all of the above are documented and saved, we may not be able to prove a fraudulent claim, but we may be able to keep any payment on the claim at a lower value.
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