What Is First Second And Third Party Insurance?

First-party insurance refers to an insurance policy that covers the policyholder's own losses or damages. This can include coverage for damage to their own property, injuries they sustain, or losses resulting from theft or other covered events. Second-party insurance is not a commonly used term, but it generally refers to a policy between two parties, such as a homeowner's insurance policy between the homeowner and the insurance company. Third-party insurance refers to a policy that provides coverage for losses or damages caused by the policyholder to others. This can include liability coverage for property damage or injury to others caused by the insured driver, such as in the case of car insurance.