The ever-present challenge of fraud for insurance companies

On Behalf of | Sep 18, 2018 | Denied Insurance Claims

Many Louisiana insurers that offer comprehensive protection to policyholders often provide service across an impressively broad range of industries.

We note some representative practice areas on our website at the long-tenured and proven Lafayette insurance defense law firm of Caffery, Oubre, Campbell & Garrison, L.L.P. They centrally include defense in these insurance realms:

  • Personal injury
  • Motor vehicle accidents
  • Premises liability (e.g., slip and fall)
  • Property claims (residential and commercial)
  • Product liability (dangerous and defective products)
  • Workers’ compensation

Insurers must often defend against such claims for myriad reasons, ranging from canceled/lapsed coverage, uncovered subject matter and policyholder negligence to nonpayment, incorrect information/data and fraud.

That last-cited element is a special concern for the insurance industry. It requires a constant focus and attendant diligence by insurers who must be unflaggingly vigilant against claims that purposefully misrepresent.

And it obviously begs this question: How big of a problem is insurance fraud?

That query can be answered in a word: huge. According to one estimate noted in an online overview addressing the troublesome nature and dimensions of insurance fraud, the aggregate costs of such wrongdoing potentially exceed $150 billion each year.

Detecting insurance fraud is understandably not the easiest task, given what the primer notes is its “surreptitious nature.” Individuals of every stripe and from virtually every industry seek to defraud insurers, which materially ratchets up costs for every American consumer and deals a harsh blow to the insurance industry.

Insurers that know or reasonably suspect they are targeted by fraud can reasonably turn to an experienced legal team for diligent representation. Proven legal counsel can provide on-point and effective input at every stage of a fraud matter, from initial investigation to aggressive advocacy in a courtroom when that is necessary.