Private investigator insurance could be seen as either one of two things. The first, less common definition of the term is insurance for people working in the field of private investigation. The second, more commonly encountered definition is concerned with insurance claim verification by a private investigation arm.
Private investigator insurance is a subset of private investigation that involves investigating subjects of interest related to insurance matters. Thus private investigator insurance usually involves looking into suspicious insurance claims.
The rising incidences of insurance fraud have made it necessary for private investigator insurance to be practiced. Private investigator insurance is in fact, one of the most lucrative and most practiced subsets of private investigation.
A private investigator who works for an insurance company in order to check for insurance fraud will typically have to be licensed in the jurisdiction where the fraud investigation is to take place. Private investigators have very different levels of acceptance throughout the world. In some countries, it is illegal for anyone to do the kind of work private investigators typically do. In other countries, such as the United States, private investigators are very much in demand due to the culture and the volume of cases of insurance fraud and marital infidelity that usually entice parties to take on private investigator services. In some countries, such as South Africa for example, the services of private investigators, including those who practice investigator insurance are very popular due to a perception that the police cannot handle crime effectively.
Requirements for practicing private investigation will vary from jurisdiction to jurisdiction. Indeed, some will have no laws regulating the practice, while many others will be very strict on such matters and the practice may even be illegal in some places. Special schools that teach the required skills are present in many places where the practice sis legal.
Private investigators and the practice of private investigator insurance have in the past, suffered from perceptions of seediness and borderline unethical practices. Hover, in recent years this perception has been eliminated due to better screening of employees in private investigation firms. Private investigators legally working for most firms in the United States whether working directly for a company or as a contractor will typically have a clean criminal record. Modern business practices and improved oversight have also rendered the image of shady private investigators a somewhat outdated one that is not in keeping with the way private investigation and private investigator insurance is practiced throughout the United States today.
The technology needed to conduct investigations has also throughout the years has become quite affordable, and as a result, private investigator insurance is quite easily and cheaply conducted. This has led to more and more insurance companies using private investigators to pursue information on a wider variety of insurance claims.
Many private investigators working for insurance companies in the United States are former law enforcement and military personnel. A good number of them are also former private and government auditors and members of intelligence services. This meeting of specializations has led to some private investigation firms to field very eclectic personnel, while others choose to focus on hiring those with experience relevant to the expressed specialties a firm has.