The first thing you need to know is that there are two (2) types of insurance coverage claims; First Party and Third Party:
First Party Insurance Coverage
First-party insurance covers a policyholder (you) for damages or losses you have suffered to your person or property. Some examples of first-party insurance are:
Your homeowner’s insurance policy
Your renter’s insurance policy
The Personal Injury Protection (PIP) and Uninsured/Underinsured Motorist (UM/UIM) Coverages of your auto policy
Your health insurance policy
Third-Party Insurance Coverage
Third-party insurance is insurance that is purchased to protect the policy holder (you) against liability for damages or losses caused by you to someone else or their property. Some examples of third-party insurance are:
Your homeowner’s policy for personal injury caused by you
The Liability Coverage and Medical Payments Coverages of your auto policy
Your Commercial General Liability (CGL) policy
Directors’ & Officers’ (D&O) Liability policies
Errors & Omissions (E&O) Liability policies
Umbrella and excess insurance policies
Regardless of the type of claim you may have submitted to your insurance carrier, the insurance carrier owes you, its policyholder, a fiduciary duty to investigate and process the claim per the terms of your insurance policy.
