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

In Washington, the difference between first-party and third-party insurance claims is important to understand when dealing with insurance law. In a first-party claim, the insured party is asserting a right to recover for their own property damage or injury. Essentially, it is a claim made by the policyholder or insured against their own insurance policy. A third-party claim, on the other hand, is a claim brought by someone other than the insured party, such as a business partner or family member, against an insurer of the policyholder. In a first-party insurance claim, the insured party is basically the plaintiff. They are making a claim to their own insurance policy to receive compensation for their losses. An example of a first-party insurance claim would be a homeowner’s claim after their house has been damaged by a natural disaster. A third-party insurance claim is a claim brought by someone other than the insured party against an insurer of the policyholder. A third-party insurance claim is a civil lawsuit brought against an insurer on behalf of someone who has suffered damages due to a third party’s wrongful or negligent actions. An example of a third-party insurance claim would be a pedestrian injured by a driver carrying auto insurance. The injured party would make a third-party claim against the driver’s insurance policy to receive compensation for their medical care and other related costs.

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

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