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Understanding Third Party Liability
Apr 1, 2015

third party liabilityIn Conyers “doctor and third party liability” are phrases that go together like chicken and waffles. The problem is, not everyone knows about third party liability. If that’s you, then read this blog to know how it can affect you.

It has to do with accidents. Atlanta is a notoriously accident prone place. Whenever a car accident happens, one person has hurt somebody else and this carries a string of unfortunate events all the way back to the insurance company worker who reads a claim.

Third party liability is holding someone else responsible for your own mess. It’s legitimate to do and encouraged practically everywhere – especially by insurance companies. You can do it too, when people who hurt you, but they can also do it to you. So it’s smart to get 3rd party liability insurance, which allows you to withstand being charged financially or legally in the event that you’ve hurt or damaged another person or a person’s property.

The victim is known as the 1st party. You can also call this individual the plaintiff. The 2nd party is the insurance company, which would rather not pay for other people’s mistakes. When the mistake maker is known, this person becomes the 3rd party. The insurance company will push off the claim from itself, and onto the person or organization that delivered the damage. To the one who is truly responsible.

This works the same way that medical insurance does. Meaning you buy more, you’ll get more coverage. While you’re insurance may already carry 3rd party liability, it may not. Find out by calling your insurance company.

How is third party liability different that other insurance you’re used to buying? Instead of covering you from the money you would need to spend on yourself, it covers you from the money you might need to pay other people. In the event that you’re sued for damages, this can really be helpful. It also may cover court costs.

Here are some of the categories of third party liability:

  • Commercial – what businesses use to protect themselves from accidents that employees or its own practices wreak on others
  • Product – what businesses use to protect themselves from the damage their products do to the public
  • Professional – this covers white collar issues such as malpractice and broken contracts in which the only damage done was on paper. It’s real enough that it retains it’s own category of 3rd party liability.

Make sure that you get help from professionals dealing with insurance. Third party liability is a form of insurance that really affects everyone, but most aren’t familiar with how it works, or the best kind of insurance that will work for them.