Navigating the Challenges of Surveillance in Insurance Claims

At the 2023 Focus Conference, experts Stanley Kanterman and Bharat Varadachari provided insights into the complexities of surveillance in insurance. Surveillance, a nuanced and sophisticated process, must navigate various pitfalls to be effective and legal. Key pitfalls include using unlicensed investigative companies, hiring investigators not on payroll, lacking proper insurance, and failing to understand state-specific bad faith regulations and jury perspectives on surveillance. It’s crucial to avoid invasive practices, such as social media data mining of minors, and to conduct surveillance only in public spaces.

Understanding the subject’s routine is essential for effective surveillance, particularly in the post-COVID-19 era where traditional methods may be less successful. For instance, stationary surveillance like parked cars has become more noticeable to individuals working from home. Therefore, more subtle techniques, such as using a ’drop car’, are being adopted.

Data mining is a critical step, extending beyond the claimant to their family history and living situation. However, it’s important to adhere to legal boundaries, avoiding direct contact like friend requests or private messages. Surveillance tools range from GPS trackers and license plate monitoring to social media, phone records, and location tracking.

Kanterman emphasized the importance of relying not only on investigators but also on professional expertise as claims personnel or attorneys. Understanding admissibility, state laws, and partnering with knowledgeable law firms are key to conducting legally compliant and effective surveillance. This approach is crucial in handling insurance fraud cases and understanding jury perceptions.