Which type of claim is filed against an insurance policy by anyone other than the policyholder?

A third-party claim is filed against an insurance policy by an individual or entity that is not the policyholder. This type of claim typically arises in situations where the policyholder is at fault for causing damage or injury to another party. For example, if a driver with an auto insurance policy causes an accident that injures another person, that injured person (the third party) may file a claim against the driver's insurance policy.

This mechanism allows individuals who suffer losses due to the actions of a policyholder to seek compensation directly from the insurance company covering the liable party, rather than having to pursue the policyholder for damages. Understanding this type of claim is essential as it encompasses a significant portion of claims processed in various insurance fields, including auto, liability, and property insurance.