What is Third Party Liability Insurance?

 

Third party liability insurance is purchased by the insured – the first party – and issued by the insurer – the second party – for protection from claims of another party – the third party. Bodily injury liability covers all medical expenses; hospital bills, lost wages, and also includes pain and suffering. Thirsd party liability insurance is important for those who have assests that need to be protected.

What is third party liability?

Oftentimes third-party liability insurance is a required form of insurance for any party that may potentially be sued by a third party. This can be referred to as product liability insurance – most business owners that sell products and goods will carry third party liability insurance in order to protect themselves from liability lawsuits.