Insurance Companies should require due diligence to slow losses from occupational fraud.
Insurance is, by its very nature, a risky business. Limiting your exposure to claims and litigation is paramount. To that end, especially in this economic climate, insuring clients who have no interest in performing due diligence measures, or being proactive in limiting their exposure to loss, seems to be a losing proposition.
In almost every kind of liability insurance, home, property, car, etc., there is some level of due diligence expected on the part of the insured. Fire clearance areas, rise and run measurements for stairs, building codes, etc., all are in existence, to some degree, because of the advisability of due diligence to limit the exposure of the insurance companies.
