Insurance claims can come from two directions. They can come directly from the person or business who has purchased the policy from the insurance company. Claims can also come from someone whose name is not on the policy. The differences between these two help define what a "first party" insurance claim is.
First vs. Third Party Insurance Claims
When the person or business who purchased a policy makes a claim, it is considered a "first party" insurance claim. Examples include a homeowner who makes a claim for fire damage, a farmer making a claim for crop damage after a hail storm, or a business that makes a claim after a break-in. There are no outside parties involved, only the insured and the insurer.
A third party insurance claim is made by someone who is not named on the policy. That person or entity is claiming a loss or damage that is covered by the insured's policy. A common example is someone who slips and falls in a business. This person sustains an injury and then makes a claim against the business's insurance policy to cover medical bills.
Where Do the "First Party" and "Third Party" Terms Come From?
An insurance policy is actually a contract between two parties: the insured and the insurer. The terms come from the language used in the insurance policy to refer to the insured and the insurer.
The "first party" to the contract is the insured, the person or entity that is purchasing the policy from the insurance company. That would be you or your business.
The "second party" to the contract is the insurance company and its representatives.
The term "third party" refers to everyone else, who is neither the insured nor the insurer.
If you need help with your first party insurance claims, contact Stockard, Johnston, Brown & Netardus, P.C. in Amarillo. Our team of insurance attorneys have the experience and knowledge to help you maximize the amount you receive. Download a package of informational articles on first party insurance claims.