First Party Insurance

Essentially, first-party insurance provides financial protection for the insured party. As the name suggests, this type of insurance is between the insured and the insurer, with no third party involved. First-party insurance may include coverage of property damage, medical costs, lost wages, and other related expenses resulting from an accident or other incident.

The policy will cover the insured’s liability for damage to the property or the contents of the property. For example, a person who purchases a homeowners insurance policy is the first party, and the insurance company is the second party. Likewise, an individual who buys auto insurance is the first party, and the insurance company is the second party. The policy will cover the insured’s liability for damage to another’s property or an injury to another person.

In summary, first-party insurance is a type of insurance that provides financial protection for the insured party. It covers the insured’s liability for damages to another party, medical costs, lost wages, and other related expenses resulting from an accident or other incident. The insured party is the first party in this type of policy, and the insurance company is the second party.