PayPal will be reporting my insurance payment as income

[mehranariani]

Recently my insurance company deposited their payment for an house claim via PayPal. PayPal contacted me and informed that they are going to report this as an income. No matter  how much h I explained to them and record showed that the payment has been send via large insurance company they said there is nothing they can do and they will report this as income and I have to deal with IRS myself.

Any guidance on this will be appreciated it.

[Anonymous_]

I'll page @Mike9241