Unfortunately, fraudulent claims have become part and parcel of the insurance market. From chancers trying to make a quick profit to veteran scammers who know every trick in the book, it’s likely you’ll come across someone trying to trick the system at some point, no matter what kind of business you run. According to the National Fraud Authority, fraud cost the UK £73 billion in 2012 alone – and insurance fraud in particular accounts for a hefty chunk of that figure. And not only that, experts predict that these numbers will only see an increase in the coming years.
In order to prevent your business from becoming a victim of fraudulent insurance claims, it’s important you take the necessary measures to protect your business. These methods will not only help you in the case of potential claims, but will also help deter fraudsters from even trying to scam you in the first place.
Warn the scammers
before they even try to make a false claim, ensure fraudsters are given stern warnings. In many cases, that may be enough to scare them off and have them move on lest they get caught. Advertise that you’re using advanced technology, constant monitoring, a sophisticated methodology to detect and investigate fraud, as well as the full conviction to do what’s necessary to bring the claims to the attention of the relevant authorities.
Using CCTV may prevent fraud.
Using such simple scare tactics doesn’t require a big investment. Often, a simple warning sign in big bold letters is enough to put people off. Remember, fraudsters are looking to make a quick profit, not fight against a company that knows what it’s up against. If someone looking to make a false claim detects they may have a fight on their hands, they’ll move on to something else.
A warning sign will sometimes do the trick.
To tell the truth, not everyone is a scammer, but even honest people can still bring an insurance claim against you should they suffer any injuries on your premises. So, if there are any hazards on your property make sure that you post visible warning signs for it. Failure to do so may have some serious injuries as a result. Of course, this will have financial impact on you so you might want to avoid this at all cost.
Use Technology to Your Advantage
Surveillance technology has not only become incredibly sophisticated, it is also relatively affordable, even for small businesses. The advantage of this type of technology is that it can be run hands-free, without the need to swap tapes like in years gone by. Hard drives can store months of data without issue, which means you can always go back and refer to an incident even if it occurred quite some time ago.
Video surveillance has been shown to work incredibly well to catch fraudsters red-handed. For example, in a recent case study on The Guardian, a student was caught on camera noticing a water in a reception area before purposefully slipping and feigning injury. Instead of a ‘he said, she said’ scenario, it was easy to expose the fraud.
Keep an Eye on Your Customers
We’re not saying you should follow your customers everywhere they go, but letting them know you’re keeping an eye on them is often enough to put fraudsters off. For example, employing security staff can do more than deal with theft or troublesome customers. They can also act as deterrents to fraudsters as well as witnesses to potential criminal activity.
Remember, fraudsters are just people. They’re sensitive to just the thought of being caught, which means you have to give them every possible sign that you may be onto them. While security staff can only see so much and video may not catch everything, they can nevertheless put the fear necessary to prevent fraudsters from acting. This in itself will pay your investment back many times over.
Subscribe to the Business Boss email newsletter and learn about running a small business. You will find lots of useful tips and articles which will not only save you time and money, but also your sanity.