Every day across the United States, someone is committing insurance fraud. According to the Coalition Against Insurance Fraud:

$80 billion is stolen through insurance fraud schemes every year!

Everyone pays a steep price for these fraudulent schemes – insurers losses are reflected in our health and home insurance premium increases, car insurance rate increases, consumer goods costing more, and businesses going out of business.

What is Insurance Fraud and Why it is so Prevalent

Insurance fraud is committed when someone collects money from an insurance company or agent that they have no right to. The motive is to gain monetarily from the insured business. The fraud can be the work of a single person or of crime rings. Insurance fraudsters can fake an accident, injury, theft, arson or other liability to obtain compensation illegally. Insurers and agents can also commit fraud by defrauding consumers or each other.

Insurance fraud is so widespread because it is difficult to detect. The largest frauds are in healthcare. The Coalition Against Insurance Fraud says healthcare fraud alone is $54 billion per year – in overzealous auto accident injuries, doctors exaggerating illnesses to extend hospital care, and Medicare fraud. The overworked healthcare system with its large number of patients and treatments is an attractive target for criminals.

Some Types of Insurance Fraud

  • Auto accident claim scams
  • Faked arson
  • Corporate healthcare fraud
  • Individual healthcare fraud
  • Life insurance (faked death; murder)
  • Property insurance fraud
  • Liability insurance fraud
  • Fake insurance companies

Protect Yourself: How to Avoid Insurance Fraud

  • Demand itemized bills and check for accuracy for medical and repair services. Track all claims against your insurance.
  • Install security cameras to help with slip-and-fall claims
  • Hire security personnel that can be used as witnesses
  • Report a suspected incident of fraud to National Association of Insurance Commissioners (naic.org)
  • State fraud bureaus investigate cases of bogus insurance claims (42 states have bureaus)
  • Be wary of a claimant that pushes for the quick handling of his claim; i.e., he wants to get his check in the morning before going on vacation.
  • Liability and property insurance coverage tailored to your business and its risks

How Anthony Insurance Services Can Help

Anthony Insurance Services (AIS) can provide you with liability and accident insurance for sports, sporting events and tournaments. Accident, participant liability and general liability, and spectator liability can be chosen. Multiple events can be insured. A variety of sports and sporting events can be covered. Insurance for sports camps, clinics and tournaments for both youth and adults are offered. Overnight camps are included. Non-sports camps coverage includes educational camps such as nature and church/religious, and music/singing/theater camps.

Our special events insurance covers the event and event organizer from lawsuits. This coverage can include private and public events such as birthday parties, concerts, farmers’ markets, festivals, live action role playing and weddings.

Mixed martial arts, kickboxing, boxing and professional-style wrestling events require specialized coverages for professional and amateur events – accident medical insurance for participants, and general liability coverage for the venue and the promoter. Coverage is available for martial arts schools and studios. Volunteers and employees are covered. Equipment coverage is also available.

AIS works with numerous vendors, exhibitors and concessionaires. Our vendor liability insurance provides protection against claims for bodily injury and property damage. Coverage can be for a one day policy, an annual policy, or anything in-between. The coverage will pay the cost of defense and settle any claims up to the limits purchased.

And if you have questions about fraud, just call us and ask: 877.811.2271.

 

References:

http://www.naic.org/documents/consumer_alert_beware_insurance_fraud.htm

http://www.naic.org/cipr_topics/topic_insurance_fraud.htm

http://www.aig.com/fraud-prevention_3789_536502.html

http://www.businesssecurity.net/stopping-insurance-fraud/