Third-party liability insurance helps cover financial claims from someone else when your actions cause injury, property damage, or other covered losses or costs.
The insured is the first party, the insurer is the second, and the claimant seeking damages is considered the third party in coverage.
Auto policies often include bodily injury coverage for medical costs, lost wages, pain, and suffering, plus property damage coverage for repairs or replacement.
Many drivers must carry minimum liability coverage, but state rules differ; homeowners or asset-heavy households may consider higher limits for broader protection.
Beyond auto coverage, public and product liability policies help businesses address injury, property damage, legal fees, settlements, and claim-handling costs from third-party claims.
