Third-Party Liability Auto Insurance Coverage

Third-party liability insurance coverage pays for damages caused by the policyholder to another party. Accidents involving a third-party (the first two parties being the policyholder and the insurance company) include many car accidents or premises liability issues (slip and fall on someone’s property, for example). Here, I discuss the importance of this type of injury insurance from the perspective of an Orlando personal injury lawyer.

There are generally two types of third-party liability insurance coverage for automobiles: bodily injury and property damage. Bodily injury insurance covers any medical expenses incurred by others involved in a car accident caused by the policyholder.

Property damage pays for the other party’s property damage, such as a:

• car;
• fence;
• telephone pole; or
• even someone’s home.

These two types of insurance are required in most states. Florida is a no-fault state, though, so bodily injury liability coverage is not a requirement for most drivers. Personal Injury Protection is required in Florida and covers injuries suffered by the policyholder regardless of fault. Property damage liability is required, though, and many still choose to purchase bodily injury liability.

Accident victims who are struggling to recover fair compensation may want to utilize an Orlando personal injury lawyer, like myself, who can provide assistance in establishing the other party’s negligence and the injured party’s right to compensation under the injury insurance policy.

Next Let’s Look at Third-Party Liability Homeowners Insurance

Third-party liability coverage can extend to the home as well. Many people invite friends, family and neighbors to their homes regularly for social gatherings. What would happen if someone were to trip and fall because of your negligence, like failing to clean up a spill in the kitchen? What if a child is bitten by a dog on your property?

Injury insurance on a homeowner’s insurance policy may pay for expenses and losses associated with the injuries, allowing those who are injured to recover compensation to cover their damages.

This is How Recovery of Damages through Injury Insurance Works

Third-party liability insurance can help policyholders avoid costly lawsuits in many cases in addition to allowing the injured party to recover compensation for his or her damages. An Orlando personal injury lawyer can be helpful to accident victims exploring their options to recover under the negligent party’s injury insurance plans.

Compensation may be sought for:

• medical bills;
• lost wages;
• property damage;and
• rehabilitative or other related expenses.

And if the insurance company fails to offer an adequate settlement, an Orlando personal injury lawyer can be helpful in negotiating further or taking the case to court if necessary.

Third Party Liability Insurance FAQs

What is the Difference Between General Liability and Third Party Liability Insurance?

General liability insurance is a broad policy protecting from claims including as bodily injury, property damage, and legal costs. Third-party liability insurance is a specific type of coverage within general liability that applies when someone not directly involved in an incident (a third party) files a claim for damages or injury. Essentially, third-party liability is one component of general liability coverage. 

 Is Public Liability Insurance the Same as Third-Party Liability?

Public liability insurance is a type of third-party liability insurance. It specifically covers claims made by members of the public for injuries or property damage that occur as a result of your business activities. While all public liability insurance is third-party coverage, not all third-party liability insurance is limited to the public—it can also include employees, clients, or other external parties depending on the policy.

What is the difference between first-party liability and third-party liability?

First-party liability refers to coverage for the loss of the insured themselves, such as for damage to their own car or property. Third-party coverage, on the other hand, insures against loss or injury inflicted upon others. In Florida, for example, if you hit another car in Orlando, your third-party auto insurance would pay for the other person’s repairs and medical bills, but first-party coverage (e.g., collision or PIP) would pay for your own loss.

What is the difference between comprehensive and third-party liability insurance?

Comprehensive insurance covers damage to your car from non-collision events like theft, vandalism, or hurricanes, a big problem in Florida. Third-party liability insurance covers damage or injuries you cause to others. If your car is damaged during a storm in Orlando, comprehensive coverage would pay for repairs; third-party liability would not help in that situation.

What is an example of a third party claim?

A third-party claim in Florida would be if you were at fault for a car accident on I-4 in Orlando. The other driver, with injuries or damage to his car, is able to make a third-party claim on your auto insurance company. The policyholder in our example would be you, your insurer being the first party and the injured driver as the third party claiming compensation.

Contact a Third-Party Liability Claims Lawyer

Having third-party liability insurance may prove helpful for a negligent party liable for the victim’s injuries, and it can allow the victims to avoid financial stress that comes with serious injuries that result in significant expenses and losses. I’m a Florida personal injury attorney who can help you understand your legal rights if you’ve been injured because of another party’s negligence.

Contact me, Michael T. Gibson, today at (407) 422-4529 for a free consultation regarding recovery from third-party liability insurance coverage.

Sources:

Florida Highway Safety and Motor Vehicles – Insurance Requirements
Outlines Florida’s mandatory auto insurance laws, including third-party liability and Personal Injury Protection (PIP) requirements.