exali Glossary
Your encyclopedia of technical terms used in the insurance industry
The insurance industry is full of technical terms—from insurance policies and obligations to recourse claims. To help you keep track of everything, the exali glossary explains the main insurance terms in a simple, understandable, and practical way.
In the exali glossary, you will find not only definitions, but also practical examples, legal information, and references to the appropriate insurance coverage. This way, you always know where the risks lie—and how to protect yourself against them.
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Third-Party Damage
Third-party damage is damage that does not affect the policyholder or a co-insured person, but rather an outside person or another company. In liability insurance, this means that the insurer pays if the policyholder causes damage to a third party and is liable for damages.
Characteristics of third-party damage
- The injured party is not the same as the policyholder or a co-insured person.
- It is not a first-party loss.
- The damage can be personal injury, property damage, or financial loss.
- The policyholder must be demonstrably liable for the damage (legally or contractually).
Examples of third-party damage
- Personal injury: A visitor to the office trips over a cable and injures himself.
- Property damage: An IT service provider damages a server at a customer's premises.
- Financial loss: An agency delivers faulty source code, causing the customer's online shop to be offline for several days and resulting in lost sales.
- Product liability: A faulty device causes a fire at the end customer's premises.
Term: Third-Party Damage
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