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.
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.