what is the importance of third party insurance 
third party insurance is a form of liability insurance it offers the insured coverage for injury or damage they have caused to another person or business without third party insurance a person or business could end up paying extremely high damages to someone they have injured whether or not the injury was intentional who are the parties in third party insurance for an insurance policy the first party is the person or business that purchases the insurance the insured the second party is the company providing the insurance the insurer a third party is some outside person or business that makes a claim for damages from the first party 