Fundamentals

First-Party vs. Third-Party Claim

A first-party claim is one a policyholder files with their own insurer; a third-party claim is filed against someone else's insurer for a loss they caused.

Also known as: first party claim, third party claim

Subrogation is the bridge between the two: an insurer pays its own policyholder's first-party claim, then pursues a third-party recovery against whoever was at fault. Understanding which side of a loss a claim sits on determines who owes whom.