“In wartime, truth is so precious that she should always be attended by a bodyguard of lies.” – Winston Churchill

Of late, tales of “leaks” have spilled across the pages of the press. But my purpose is not to comment on the virtue or evil of disclosure in the political arena. Rather it is to remind Claim Professionals and Coverage Counsel engaged in fraud investigations that truth, as Churchill so elegantly reminded us, is indeed a precious commodity and must be protected against inadvertent disclosure. Fraud investigations typically have many actors — field adjusters, SIU Investigators, Claim Professionals and Counsel. But to drive a successful investigation, either to prove or to eliminate from consideration a suspected fraud, a tight ring must be drawn around what is known and what is suspected.

The reality is that disclosure, often inadvertent, of inconvenient facts, or even theories of suspected fraud enable insureds to “massage” the facts or to change the contours of a claim submission. Worse, if mere “suspicion” is put down on paper, it later offers an opportunity for plaintiff’s counsel to knock over “straw men,” arguing that insurers have pre-judged the claim, giving rise to “bad faith” allegations.

Our advice is to keep close counsel, confer frequently and commit “facts” to paper only if established to the satisfaction of all concerned.

And that’s it for this This and That. If you have any comments about this post, please call or email Dennis.