One of the risks of doing business as an insurance company is facing accusations of fraud from policyholders. Such claims can harm your finances and reputation. Nevada has strict insurance fraud laws, so you should know how to protect your interests. Your primary goal should be to limit the damage and stem negative public backlash.
Managing public reputation
One of your first considerations should be engaging a public relations agency early on to help manage your message and protect your brand image during the legal process. You must immediately avoid the bad press and protect your company’s public image.
A public statement addressing the allegations can help manage negative public opinion. Be earnest and transparent in your statements and emphasize that your company follows strict ethical procedures.
Building your legal defense
Your second consideration should be contacting legal counsel to assist you with defense strategies. As part of your defense, you can:
- Show a lack of intent to defraud: Nevada law requires proof of intent for a fraud claim to succeed. Argue that any errors were unintentional. Provide evidence of honest mistakes or misunderstandings.
- Challenge the importance of misrepresentations: For a fraud claim to stand, the plaintiff must show that misrepresentation significantly impacted your company’s decisions. Argue that any inaccuracies did not influence your company’s actions.
- Prove that your company followed its policy terms: It shows good faith and provides evidence through documentation.
- Question the evidence: If the authorities obtained the evidence illegally, this can be grounds for inadmissibility.
These strategies are only a few of the defenses you may employ. Your lawyer may know more and will advise you on the best course of action tailored to your situation.