Third-Party Claims

In the context of insurance, a third-party claim is a demand for compensation from an insurer made by a third party who has been personally injured or who has suffered property damage due to the actions or negligence of the insured party. The third party may be a person, a business, or both.

Examples of third-party claims include:

• a pedestrian injured in a motor vehicle accident caused by the insured driver
• a medical malpractice lawsuit filed by a patient against the insured doctor
• a product liability suit brought against a manufacturer or retailer

A third-party claim often refers to a dispute between the insured and the third party, such as an injured pedestrian or a patient suing a doctor. In such cases, the insurance company may be liable for the damages awarded to the injured party. The insurance company may also be responsible for legal costs associated with the case.

In summary, third-party claims refer to a legal lawsuit brought by a third party against an insured party for damages or legal costs related to an incident or dispute. In the insurance industry, this type of claim is often used in motor vehicle accidents, medical malpractice, and product liability cases.