Slip and Fall Insurance Fraud: Prevention, Consequences, and What to Do After an Accident.

Slip and Fall Insurance Fraud: Prevention, Consequences, and What to Do After an Accident.

Slip and fall insurance fraud is a significant issue within the United States, involving individuals who intentionally stage accidents or manipulate evidence to file false claims. These fraudulent actions can have far-reaching consequences, not only for businesses and insurance companies but also for legitimate victims who may find it more difficult to claim compensation due to the increasing scrutiny on slip and fall cases.

What is Slip and Fall Insurance Fraud?

Slip and fall insurance fraud typically occurs when a person deliberately stages a fall or manipulates the conditions to make it appear as if an accident occurred. For example, one common fraud scheme involves placing slippery items such as grapes or liquid on the floor in a grocery store. The fraudster will then pretend to slip and fall while an accomplice may act as a witness to the accident. This staged incident can then lead to an insurance claim.

Other fraudsters might choose to pour liquid on the floor themselves and feign an injury, relying on the fact that business owners or employees might not notice them creating the hazardous conditions.

How Common is Slip and Fall Insurance Fraud?

Slip and fall fraud is more common than many might think. According to the National Insurance Crime Bureau, over 2,000 suspicious slip and fall claims are reported each year. In fact, the estimated cost of slip and fall accidents in the United States is around $13-14 million annually. These incidents are one of the leading causes of accidental injuries, with 20.8% of all emergency room visits being related to slip and fall accidents, according to the National Floor Safety Institute.

Moreover, fraudsters who successfully receive compensation for their false claims often continue their fraudulent activities. They may repeatedly stage accidents in different locations, targeting businesses in an attempt to gain further payouts. For example, in 2014, 46 individuals were arrested in Philadelphia for a coordinated slip and fall fraud scheme where they staged accidents and recruited others to do the same.

Consequences of Slip and Fall Fraud

The consequences of slip and fall fraud are far-reaching. For businesses, fraudulent claims can lead to increased insurance premiums and legal costs. Insurance companies also face significant losses when fraudulent claims result in large payouts. However, perhaps the most detrimental consequence is for legitimate victims of slip and fall accidents, who may face increased scrutiny, making it harder to receive the compensation they deserve.

RELATED: What Is a Slip and Fall Accident and How can I claim?

As personal injury lawyer Edward Friedman from Friedman & Simon, LLP, points out: "Fraudulent claims not only hurt businesses and insurers but also hinder genuine victims who need compensation for real injuries. It creates an environment where insurers become overly cautious, scrutinising every claim, including legitimate ones."

Discovering and Preventing Slip and Fall Fraud as a Business Owner

For business owners, preventing slip and fall fraud is a priority to avoid the potential consequences of false claims. One of the best ways to protect against fraudulent claims is by maintaining a clean and safe environment for customers. Regularly checking and cleaning floors, fixing cracks or uneven surfaces, and ensuring proper lighting can help reduce the risk of both real and staged accidents.

Additionally, installing security cameras throughout the premises can be an effective deterrent for fraudsters. If a fraudulent slip and fall claim is made, video evidence from security cameras can quickly prove the claim is false. By having these precautions in place, potential fraudsters may look elsewhere to stage their accidents.

Recognising a Fraudulent Slip and Fall Claim

Identifying a fraudulent slip and fall claim can be challenging, but there are some common red flags to watch out for. In cases where there is no immediate medical treatment, for instance, or where the injury seems exaggerated or inconsistent with the circumstances, fraud may be at play. Suspicious behaviour, such as an unusually quick or excessive demand for compensation, should also raise concerns for business owners and insurance companies.

Why Personal Injury Lawyers are Concerned with Slip and Fall Fraudulent Claims

Personal injury lawyers, especially those who specialise in slip and fall cases, are deeply concerned with the impact of fraudulent claims. Not only do these scams waste time and resources, but they also make it more difficult for genuinely injured individuals to get the compensation they need.

For example, as noted by a personal injury lawyer in Philadelphia: "Fraudulent slip and fall claims create an atmosphere of suspicion and can make it harder for innocent victims to prove their case. Insurance companies are more reluctant to settle, and businesses may be overly cautious when handling legitimate claims."

The increased use of security cameras, however, has helped to expose many fraudulent claims, as video footage can prove crucial in clearing up any confusion about what actually happened. This is why it’s important for anyone involved in a legitimate slip and fall case to ensure that all evidence, including video footage, is preserved.