YOU ASK:
What is the definition of Third-Party Coverage?
WE ANSWER:
Third-Party Coverage refers to protection provided against losses due to potential lawsuits that a third party may file against the insured. The first and second party (that is being referred to in the insurance contract) would be the insured and the insurance company, respectively. "Third party" may refer to any other person or entity aside from these two.
Third-party coverage pays for damages awarded due to personal injury or damaged property suffered by a third party, as a result of the negligence of the insured person. The insurance may also pay for defense costs. These payments are subject to a maximum limit.
Was this insurance question and its answer useful?
| Not a bit | Very useful |
Have an Insurance Question? Ask For Insurance
More insurance terms around third-party coverage:
- Time Deposit
- Time Limit on Certain Defenses Provision
- Title Insurance
- Tort
- Tort Law
- Tort Reform
- Total Disability
- Total Loss
- Transparency
- Travel Insurance
- Third-Party Administrator
- Terrorism Coverage
- Territorial Rating
- Term Life Insurance
- Term Certain Annuity
- Ten-Day Free Look Provision
- Tax-Deferred Basis
- Tax Sheltered Annuity (TSA)
- Swaps
- Surrender Cost Comparison Index