An insurance cover provides you with the way to pay the expenses for repairing damages or replacing lost belongings in your home. But you also need insurance covers in case of damages or harm involving other people. So, a third party insurance is a policy cover purchased for protection against the claims of another. The most common type of third party insurance is the automobile insurance.
Explained below are various types of third-party insurance
Third Party Accident Insurance
Take for example, when met with an accident, you file an accident claim. In this case you are the first party protected by the insurance company, who is considered as the second party. Then, the other motorist in the accident will be considered the third party. In a scenario, where the other is at fault, you deal with the third party’s insurance company in order to avoid increasing rates to your policy, since you were not at fault. This procedure might take longer than usual since the company will be looking for any loopholes to stall payments, looking at their best interest.
This is an insurance cover not many are aware of. Many might even question whether it is at all required since it is assumed that the landlord has insured his property. However, this does not necessarily imply that the tenant’s belongings if damaged or stolen from within the property will also be covered. In such a time of crisis this policy comes to help. Renters insurance can also offer coverage if someone gets injured in your rental home by taking care of their medical bills and can also protect you if the third party files a lawsuit against you for the injury.
Business Liability Insurance
It is of utmost importance for business owners to purchase a business liability insurance cover to protect themselves in case of any accidents taking place within their premises or in case they are sued for certain practices. Take for example, a customer or vendor slips and falls or suffers any injuries from another type of accidents within your company’s premise, then the insurance covers the third party for medical costs or against lawsuits. The third party business liability insurance also includes coverage for legal costs against discrimination or harassment charges.
Third Party Health Insurance
In case of health insurance, the third party policy works in a slightly different manner. At the time of claiming a health insurance, the customer is the first party, the hospital or physician visited becomes the second party and the insurance company becomes the third party when it pays the medical expenses to the doctor or medical facility. However, this is dependent on your insurance policy. In case of a self-insurance plan, the employer pays for the medical bills of their employees from the company fund. Whereas in the supplemental health coverage, which covers accidents or particular illnesses, the insurance company usually pays directly to the patient for medical treatment.