What is a third-party liability claim?
A third party liability claim means you are suing somebody other than your own insurance company for damages that you sustained as a result of an injury. That can be pain or suffering, loss of enjoyment and life, your future and past medical expenses, your future and past lost earnings. The difference between the third party lawsuit and a first party lawsuit is a first party claim is made against your own insurance company. It would be no fault in a car accident case. It would be workers’ compensation in a work-related applicant. Those are first party claim benefits. Third party claim benefits or lawsuits are made against the person that injured you, the other car, the owner of the building, that type of thing.