What Is Insurance Fraud?

Insurance fraud can happen in two ways, according to the criminal defense lawyers at nstexaslaw.com. First, it happens when a person deliberately lies to get an advantage or benefit to which they are not entitled to. Secondly, it’s when an insurance company denies a benefit that’s due to which another party is entitled to.

Fraud is everywhere, it is in the healthcare industry, auto industry, the workplace, construction industry and more. Costs from fraud with bogus claims amount to billions every year, according to the FBI, making it a huge problem in the society.

Common Types of Insurance Fraud

General Liability Insurance Fraud

This is a broad type of insurance. It covers liability that protects guests on your property from things such as slips and falls. It ideally covers completed operations as well as products liability.

You can protect yourself from general liability insurance fraud by having regular property inspections and having written records of the dates of the inspections. It is ideally wise to be vigilant regarding safety conditions as well as potential obstacles that could result in injury.

Medicare Fraud

In this type of insurance fraud, people try to get your Medicare number and personal information with an aim of impersonating you. It’s always advisable to keep your Medicare card safe as you do with the credit cards.

Only reveal your Medicare number to those you trust. Medical professionals who require your personal information should always ask for your permission if the Medicare number is needed. The permission is usually granted personally or in writing and not over the internet or phone.

Property and Casualty Insurance Fraud

This one can be committed by all kinds of parties including policyholders, insurance applicants, third-party claimants as well as those who offer services to the claimants.

The common frauds in this field included prearranged or planned auto theft, identity theft, arson, burglary, theft of marine vessels, workers compensation, slips and falls and even staged auto accidents.

How To Protect Yourself From Insurance Fraud

There are various ways to protect yourself from this form of fraud. Ensure that you check your bills for accuracy and avoid signing blank insurance claim forms.

Never follow the advice of strangers who contact to offer you legal or medical advice.

Be wary of door-to-door insurance sales as well as any insurance costs that seem too good to be true.

Ensure that companies and agents are licensed. You can verify with your states insurance department.

Be Viligant

Insurance Fraud is happening all over our country, especially in Florida: