Definition of Third-party insurance:
Liability insurance purchased by an insured (the first party) from an insurer (the second party) for protection against the claims of another (the third) party. The first party is responsible for its own damages or losses whether caused by itself or the third party.
Third-party insurance is essentially a form of liability insurance purchased by an insured (first-party) from an insurer (second party) for protection against the claims of another (third party). The first party is responsible for their damages or losses, regardless of the cause of those damages.
Third-party insurance is an insurance policy purchased for protection against the claims of another. One of the most common types is third-party insurance is automobile insurance. Third-party offers coverage against claims of damages and losses incurred by a driver who is not the insured, the principal, and is therefore not covered under the insurance policy. The driver who caused damages is the third party.
How to use Third-party insurance in a sentence?
- Its not entirely important, in this case, whos at fault since he happens to carry third-party insurance on his policy.
- John made sure to purchase third-party insurance since he lived in such a litigious state. He was afraid of getting into an accident and getting sued, so he wanted to make sure he had extra insurance.
- The third-party insurance was a safeguard to ensure our relationship between us and the client was protected in every way possible.
- The two main categories of third-party insurance are liability coverage and property damage coverage.
- Third-party insurance covers an individual or firm against a loss caused by some third-party.
- An example is automobile insurance that will indemnify the insured if another driver causes damage to the insured's car.
Meaning of Third-party insurance & Third-party insurance Definition