Who is a third party?

  • The party causing the damage or injury is usually referred to as the first party.
  • The person to whom the damage or injury is done is the third party.
  • For insurance purposes, some people might not be considered to be third parties
    • People close to the Insured – close enough for the Insured to benefit from the policy’s indemnity.
    • e.g. the Insured’s employees or members of the Insured’s household
  • The second party shares in the first party’s misfortune, e.g. the Insurer. 
Introduction to Liability