If you own an insurance company or business, chances are you are no stranger to fraudulent insurance claims. This act is something that you should try to stop because it can lead to expensive litigation procedures that could ruin your business down the line.
Here are essential measures that you can take to prevent business insurance fraud proactively.
1. Ask the Right Questions
First, you have to lay the foundation properly. If you want to protect your company from business insurance fraud, you need to have a system in place that can help you detect unscrupulous entities right off the bat.
You can set this up by asking questions that could help you create the right security protocols for the company. Here are some examples:
Once you find the answers to these questions, you will be able to prevent fraud before it starts.
2. Do a Market Study
Secondly, you have to know your market. By understanding the people that you are going to cater to in terms of insurance policies, you will be able to figure out if the applicant is just out to trick you or not. Potential risk assessment is in order here.
3. Create a Profile
Create a profile of any potential perpetrators that might use the insurance policies to make money. Insurance fraud is not uncommon. As a company owner, you will easily find previous cases that can allow you to create a profile of potential clients that might end up using the policy to get cash quickly.
Using this profile, you will be able to weed out any suspicious candidates right from the interview pool.
4. Know Your Policies
Additionally, it would help if you studied the policies that you are trying to sell. What kind of coverage benefits could they use to get the most cash? Once you identify the most lucrative insurance benefit for the business, you can easily detect if your clients are trying to use that policy feature for their evil intentions.
5. Authenticate the Claim
It is also crucial for you to check the business insurance claim authenticity before payout. You should make sure that the insurance claimant is not at fault for the accident or if it happened in his establishment. Sometimes, claimants will make it seem like the other establishment was a fault to get insurance payments. You have to make sure that the claims are correct before paying the claim.
If you can do these five major detection protocols, you will prevent business insurance fraud right before it begins. Just make sure that you get your facts straight, and everything else will follow.
At Black And Associates Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote.
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