What should an adjuster do if they suspect fraud in a claim?

When an adjuster suspects fraud in a claim, the appropriate course of action is to report the suspicion to the insurer’s fraud department. This procedure is crucial because specialized teams are trained to handle potential fraud cases, ensuring the investigation adheres to legal and ethical guidelines.

The fraud department will have access to resources and expertise that an adjuster may not possess, allowing them to conduct a thorough investigation. This could involve gathering evidence, reviewing records, and possibly coordinating with law enforcement if necessary. By reporting the suspicion, the adjuster helps safeguard the insurance company against fraudulent activities, contributing to a more fair and transparent claims process.

Taking independent action to investigate could lead to issues such as violating legal boundaries or agency protocols, making the involvement of the fraud department essential for proper handling. Ignoring the signs of fraud or paying the claim without addressing the suspicion risks significant financial loss for the insurer and undermines the integrity of the insurance process.