Commercial insurance policies are designed to provide broad protection — combining property, general liability, and often commercial auto into a single program. That breadth, while valuable, can also make the business an attractive target for fraudulent or opportunistic claims. 

From staged slip-and-falls to exaggerated property damage and manufactured liability allegations, fraud often exploits coverage complexity rather than outright deception. Businesses insured under commercial policies can significantly reduce their exposure by adopting a few disciplined, practical risk-management measures. 

  1. Understand That Visibility is a Deterrent
    • Fraudsters tend to look for locations where incidents are unlikely to be recorded or documented. Commercial-insured businesses with storefronts, warehouses, or public-facing premises should prioritize visibility. 
    • Effective deterrents include: 
      • Clearly posted surveillance signage. 
      • Functional cameras covering entrances, exits, and high-risk areas. Save the video footage! 
      • Adequate lighting in parking lots and walkways. 
      • Documented inspection and maintenance routines. 
    • When an incident is clearly recorded, many questionable claims never materialize.
  2. Treat Every Incident as Serious
    • One of the most common mistakes Commercial policyholders make is assuming a minor incident “isn’t worth reporting.” Fraud thrives in delayed reporting environments. It allows one side to craft their narrative while witnesses, video footage, and other resources disappear, making it much harder to defend. 
    • Best practice is to:
      • Report all incidents immediately — even those without any apparent injury or damage. 
      • Preserve photos, video footage, and witness statements the same day. 
      • Document environmental conditions and maintenance status. 
    • Early detailed documentation often becomes the most persuasive defense months later. Saving video footage and not allowing it to be recorded over can make or break a claim.
  3. Train Employees on What to Observe and Document
    • Front-line employees are frequently the first to encounter potential fraud, particularly in slip-and-fall or premises liability claims. Training should focus on awareness, not on accusations.
    • Employees should know to:
      • Document what they see and hear without editorializing, just the facts. 
      • Avoid apologizing or speculating about fault. 
      • Identify and record witnesses and timelines.
    • Consistent, neutral documentation protects both employees and the business.
  4.  Maintain Clean Property and Maintenance Records
    • Commercial defenses often hinge on whether a condition existed and for how long. Businesses that maintain clear inspection and maintenance logs are far better positioned to challenge questionable claims. In their absence, someone should be ready to state what your procedures are and how people are trained in them.
    • Key records include:
      • Daily or shift-based inspection logs. 
      • Repair and work order histories. 
      • Leases and vendor maintenance contracts. 
      • Weather and environmental records when relevant.
    • These records often determine who is responsible for what.
  5. Control the Narrative Early
    • Fraudulent claims often grow through narrative drift as details change and damages expand. Commercial policyholders should establish a disciplined internal response: 
      • Designate a single point of contact for claims and a contact that can speak to the training and best practices of the business. 
      • Centralize documentation and communications. 
      • Involve insurance agents/brokers and the carrier early when a claim notice is received.
    • Early clarity limits later creativity.
  6. Watch for Patterns — Not Just Events
    • Fraud is rarely isolated. Repeat claims involving the same individuals, locations, or times of day often indicate targeting.
    • Businesses should periodically review:
      • Claim frequency by location. 
      • Repeat claimants or witnesses. 
      • Similar loss descriptions across incidents.
  7. Patterns are powerful indicators and should be shared with carriers promptly. Partner Proactively with Your Insurer and Agent/Broker
    • Commercial policies work best when businesses treat insurers and brokers as partners rather than downstream processors. Early engagement allows ICW Group to deploy investigative, legal, or SIU resources before losses escalate and information is lost. Don’t let the other side get a head start!
    • Be honest and transparent. A changing story hurts credibility and claim value.

The Bottom Line

Commercial-insured businesses are attractive targets because there are many risks involved with running a business and they encounter all types of people. Fraud prevention in this environment is less about suspicion and more about proactive discipline. 

Businesses that document the facts early, save all information, notify us immediately, and treat incidents seriously send a clear signal: we are not an easy target. 

Customers are encouraged to visit the Policyholder Perks section of our website for more information on ICW Group services, including fraud detection and prevention.