Third Party Liability Claims

When an accident occurs, the immediate concerns often revolve around injuries, property damage, and associated costs. The injured party may often seek compensation through their insurance policy, known as a first-party claim. Yet, there are situations where you may have the right to pursue compensation from another party's insurance. This is where third-party liability claims come into play.

Understanding third-party liability claims is crucial for ensuring you receive the compensation you deserve. At Krebs Law, LLC, we're here to help you handle the complexities of these claims and protect your rights.

What Are Third-Party Liability Claims?

Third-party liability claims involve seeking compensation from someone else's insurance provider when that person is responsible for your injuries or property damage. These claims are common in car accidents, where the other driver's insurance is expected to cover your medical expenses, property damage, and other losses.

Third-party liability claims can also arise in cases involving defective products, accidents on someone else's property, or injuries caused by a business' negligence. Alabama is a fault state, meaning a person is held responsible for any damages and must have coverage. According to Section 32-7A-3 of the Alabama Code, driving in the state without liability insurance is illegal.

Third-Party Liability Coverage

Most companies and individuals carry liability insurance to protect themselves against the financial consequences of being found liable for someone else's injuries or property damage.

For example, auto insurance policies typically include third-party liability coverage, which covers bodily injury and property damage caused by the insured person.

Understanding the Claims Process

When you file a third-party liability claim, you ask the other party's insurance company to compensate you for your losses. The claim process can be difficult as insurance companies may try to lessen the amount they pay out or deny the claim altogether.

It's important to understand the steps involved in the claims process and to be prepared to advocate for your rights.

Filing a Third-Party Claim After an Accident

If you've been involved in an accident and believe someone else's home is at fault, you can file a third-party claim with their insurance provider. Here's how the process typically works:

• Report the accident: It's important to report the incident to the relevant parties immediately after an accident. Reporting the accident promptly ensures all parties know the situation and can begin the claims process.
• Gather evidence: To support your third-party liability claim, you must gather evidence demonstrating the other party's responsibility for the accident.
• File a claim with the other party's insurance: Once you have gathered the required evidence, you can file a claim with the negligent party's insurance. This is known as a third-party insurance claim.
• Negotiating a settlement: If the insurance company approves the claims you request, they will typically offer a settlement to cover your medical bills, property damage, lost wages, and other financial losses.
• Taking legal action: If the insurance company denies your claim or doesn't offer a good settlement, you may need legal action to go after the compensation you deserve. This could involve a lawsuit against the other party or their insurance provider.

Common Types of Third-Party Liability Claims

Third-party liability claims can arise in a variety of situations. Here are some of the most common scenarios where these claims might apply:

• Car accidents: One of the most common types of third-party liability claims arises from car accidents. If another driver's negligence causes a collision, you can file a third-party insurance claim with their auto insurance company to cover your medical bills, vehicle damage, and other losses.
• Slip and fall accidents: Slip and fall accidents on a stranger's property can lead to third-party liability claims. If you slip on a wet floor in a commercial area or trip over an uneven surface in a parking lot, the owner should pay for your injuries.
• Product liability claims: Product liability insurance claims arise when a defective product leads to injury or harm to a consumer. Suppose a product you used was poorly designed, manufactured, or labeled, and it caused you harm.
• Workplace accidents: While workers' compensation typically covers most workplace injuries, there are situations where third-party claims may be appropriate. For instance, let's say that a third-party contractor's negligence or defective equipment caused your injury.

First-Party vs. Third-Party Insurance Claims

It's important to understand the difference between first-party and third-party insurance claims. The distinction affects how you seek compensation after an accident.

First-Party Insurance Claims

A first-party claim is filed with your own insurance company. For example, if you're involved in a car accident and file a claim with your auto insurance policy to cover your vehicle damage, that's a first-party claim. First-party claims are typically straightforward, as they involve seeking benefits from your car insurance for coverage.

The minimum liability limits for auto insurance indicate that the policy provides $25,000 in bodily injury coverage per individual. A total of $50,000 is available for all injuries if it results from a single accident. Also, it offers up to $25,000 for property damage per accident.

Third-Party Insurance Claims

In contrast, a third-party insurance claim involves seeking compensation from someone else driver's insurance company or provider. This type of claim is more complex, as it requires proving that the other party was at fault and that their insurance policy covers your damages.

What to Do If Your Third-Party Claim Is Denied

Unfortunately, insurance companies don't always act in good faith when handling third-party claims. You have options if your claim is rejected or the insurance company offers a settlement payment that doesn't adequately cover your losses.

• Review the denial: The first step is to carefully review the insurance company's denial letter. The letter explains the reasons for the refusal, which could include issues with liability, coverage limits, or missing documentation.
• Gather more evidence: If your claim was denied because of insufficient evidence, you may need more documentation to support your case.
• File an appeal: Many insurance policies allow you to appeal a denied claim. When filing an appeal, you must submit more evidence and explain why the claim deserves approval.
• Consider legal action: If the insurance company rejects your claim or offers an unsatisfactory settlement, you are advised to take legal action. Legal means could involve filing a lawsuit against the insurance provider for bad faith practices or seeking compensation through the court system.

Types of Insurance Coverage

Many other drivers and types of insurance coverage may be involved in a third-party liability claim, including:

• Liability insurance covers damages for which the insured person is legally responsible. It's the primary source of compensation in third-party claims, whether car insurance, general liability insurance, or product liability insurance.
• Property damage coverage accounts for damage to another person's property, such as vehicle damage in an auto accident.
• Bodily injury coverage includes medical expenses, lost earnings, and other costs related to injuries caused by the insured person.
• Personal liability coverage is for homeowners' and renters' insurance policies. It defends against claims of personal injury or property damage brought about by the insured on their property.

Coverage Limits

It's important to know that insurance policies have coverage limits, which cap or coverage limit the amount the insurer will pay for a claim. If your losses exceed the coverage limit, you may need extra compensation through other means, such as filing a lawsuit or using your insurance coverage.

Contact Krebs Law to Protect Your Rights in Third-Party Liability Claims

Third-party insurance policies and third-party liability claims can provide crucial financial support after an accident. They can help you cover medical statements, property damage, lost earnings, and other losses.

If you're facing challenges with a third-party insurance claim or need help understanding your legal options, contact us for a free consultation. We're here to protect your rights and help you achieve a fair resolution first party insurance claim.