When a person makes an insurance claim, an insurance company has to do its due diligence to make sure that the claim is legitimate. Some people do try to make more out of a situation than it is. They may claim that they're badly hurt despite having little evidence to support such a severe injury.
Whether you're a company or individual with insurance coverage that another party is trying to file a claim through, it's important that your interests are protected. Of course, thanks to insurance, you should not be held personally liable for any injuries that took place on your property or as a result of your actions. However, it's still within your rights to make sure the insurance company knows that you don't believe the other party.
How would someone defraud an insurance company?
It can be fairly simple. Here's a good example.
A homeowner's insurance policy might cover accidents by offering a payout amount of $1,000. If the accident was caused by negligence, the amount paid out might be based on the costs the other party accrued instead. The person who fell may make the claim that they were pushed or that the property was dangerous, whereas the homeowner may point out that the other person volunteered to do work and make errors that resulted in a fall.
The reality is, insurance companies are good at sniffing out those who are making false claims, but an attorney may need to step in to help protect you and your insurance company against fraudulent claims and actions against you.