Insurance Detectives.
Insurance companies, both life and fire, offer a very broad field for
the detective. In fire insurance, practically every fire is of unknown
origin. A percentage, of course, are regular “burn-outs”, where the
proprietor or owner is seeking to defraud the insurance company.
Fire insurance companies, however, must act very cautiously to not
reflect suspicion on anyone, as they might be sued for damages. Fire
insurance companies, therefore, never accuse anyone until they have the
positive proof, and in order to get this proof careful detective work
is necessary.
It is astonishing how many fires of this “burn-out” class occur.
Men, engaged in business, carry a large stock of goods, and fail
to make their business pay. They see disaster staring them in the
face and they deliberately set fire to store and contents in order
to save themselves. Others have their money invested in buildings;
bad luck overtakes them, the buildings remain idle, and they plan to
“burn-out” and collect the insurance. As mentioned above, even where
all indications point to the owner setting fire to his own property,
yet the fire insurance company dare not accuse him. Instead they delay
settlement on some pretext or another, meanwhile investigating all
phases of the fire. There is a wonderful opportunity in this work for
good, ordinary detective work. In the case of a suspicious fire, the
detective secures all the information possible without allowing the
suspected man to know an investigation is being made.
It is well to find out the man’s past history, where he was located
previously, whether he had any previous fires, or failures, what his
reputation has been, whether he had any expensive habits, also whether
his business at the present location was on a profitable basis,
together with all conditions relating to his taking out the present
insurance.
In investigating “burn-outs” the detective must follow the same
policies as the insurance companies and be careful to avoid throwing
suspicion on anyone. He must work along the lines suggested by the
insurance company, and with only one object in view--to secure facts.
He must not draw his own conclusions that the man is guilty--he is
not being paid for his opinion. He must secure all the facts possible
as directed by the insurance company and place these facts in the
hands of his company to be dealt with by the latter as their judgment
directs. He must also remember the company will not prosecute unless
the evidence is positive and honest.
In reports on this line of work the detective should make the
information stand out plain and clear and give facts which he has
learned in a truthful and unbiased manner. He must be honest with the
man under suspicion as well as the company, as many fires have all
the earmarks of crooked “burn-outs” and yet turn out to be regular
accidents and perfectly legitimate.
Frequently, it is necessary for the detective to spend lots of money
in getting into the confidence of a man suspected of incendiarism. If
the evidence points strongly to incendiarism, however, the company is
willing to spend money to catch him, as he might be the cause of a
great number of “burn-outs” unless stopped permanently.
It was only a few years ago the insurance companies in a large city
suspected that there was a regular arson gang operating, due to the
fact that they had so many suspicious losses, altogether amounting to
more than a million dollars. I was employed for the purpose of making
this investigation, and to determine whether it was one organized gang
doing this work or whether it was being done by various individuals
acting independently of each other.
After several months of hard work and careful investigation I
determined that the most of the big fires were being done by an
organized gang, and after further work, with the assistance of the
local city detective department, I succeeded in rounding up this gang,
which not only included the real fire bugs and the persons insured, but
an insurance solicitor, an insurance agent, and an insurance adjuster.
The fire bugs were caught red-handed with several barrels of gasoline,
hundreds of feet of fuse and powder, as they entered a big plant for
the purpose of burning the same. These men were tried and convicted, as
the evidence against them was complete.