Even though many processes and decisions are glued with trust in the business world, humans remain the weakest link. Not only does fraud damage the business relationship, but it can also lead to the outright insolvency of the enterprise. Luckily, though, fraud insurance can help one to mitigate the consequences of fraud.
Fraud insurance compensates for the fraud-inflicted financial damage caused by third parties and employees. Whether this is forgery, dishonesty, theft, embezzlement, or any other form of third-party fraud, fraud insurance can be a savior for employers and business owners.
The most popular benefits of fraud insurance cover financial losses caused by robbery, theft, forgery, fraudulent orders, and embezzlement. Even though employees are usually considered to be trusted third parties, anyone from temporary workers to top-tier managers can commit fraud, including conspiring with other employees.
Fraud insurance helps business owners to get the required level of protection, reliability, peace of mind, as well as equip their business with the wanted custom protection measures. From intervention in the IT system to unauthorized access to data through spyware and fishing, insurance fraud covers every possible fraud case that has ever taken place with business.
While the total cost of insurance fraud in the U.S. exceeds $40 billion, it’s not possible to give even a ballpark figure for the cost of fraud insurance as it depends on the type and size of the business as well as the multiple case-specific factors.
When it comes to illegal or deceptive practices in the insurance industry, it is not difficult to identify them—overcharging clients, making misleading statements, stalling, or minimizing claims. Naturally, federal law prohibits such fraudulent practices as sliding. For instance, the OIR in Florida issued a memorandum back in 2015 regarding the sliding practices in the insurance […]
Slowing down the review of insurance claims, increasing premium payments, and putting drivers at risk — are the typical consequences of insurance fraud. While it might seem that insurance scams cannot hurt anyone, rapidly increasing auto insurance rates prove otherwise. With fraudsters regularly practicing their schemes, even cautious drivers are at risk. For instance, if […]
Insurance twisting is when an insurance agent intentionally convinces you to switch to an allegedly better insurance policy, although it would only benefit one party – the agent. Simply put, you are deliberately tricked into buying insurance policies that you don’t need.
A slowly but steadily growing average expenditure on dental care insurance leaves no doubt that oral health will remain the top health-related priority among Americans, followed by mental health, exercise, and diet. At the same time, around 3% of healthcare spending is caused by fraud, including dental fraud. Billions of dollars are spent on fraudulent […]
Rumor has it that selling life insurance is a pyramid scheme. Find out whether this is true, and learn the math behind life insurance.
The errors and omissions (E&O) insurance policy covered the professional’s financial liability.
Taking out professional liability insurance is not uncommon for businesses. And while it is only occasionally required, some choose to purchase it anyway. Why? This type of coverage can come in handy if anything goes wrong with a printing press, financial advice, organized event, or a recently sold real estate property. And while issues like […]
HOAs are generally created by and within the neighborhoods of privately owned houses or condominiums. As mentioned before, HOA is a type of community association, which is a general term for various union forms.
Over 61% of Americans get their health insurance from their employers. In CT, it is estimated that 2/3 of residents get their health insurance from their employers (OHCA 2004 Small Employer Health Insurance Survey, 2004). Additionally, the majority of the uninsured in CT today have at least one person in the family working (79%), and […]
If you ever experienced a theft or robbery, you are familiar with the feeling. Such experience often triggers regret and anger. And as a result, people feel the need to enhance the protection of their property. With 6.92 million property crime cases reported countrywide in 2019, it is only fair for people to feel concerned […]