What is the difference between first-party and third-party insurance claims?

In insurance law in Florida, the difference between first-party and third-party insurance claims is the party making the claim. First-party claims involve the policyholder making a claim on his or her own insurance policy for monetary compensation. These claims are typically made when the insured suffers direct damage due to an accident or other kind of incident covered in their policy. Third-party claims involve another person or entity making a claim against the policyholder’s insurance policy. This type of claim typically occurs when the policyholder is being sued by another party due to an accident or other kind of incident. First-party claims are typically paid directly from the insurance company to the policyholder, while third-party claims can be paid either directly to the injured party or, in some cases, to the policyholder’s attorney. It is important to note that policyholders are typically responsible for their own legal expenses related to third-party claims, regardless of the outcome. In short, first-party insurance claims involve the policyholder him or herself making a claim on their policy, while third-party insurance claims involve another party making a claim against the policyholder’s policy.

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What is the difference between first-party and third-party insurance claims?

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