What does a first party claimant refer to?

A first party claimant refers to an insured individual or entity that is making a claim against their own insurance policy for a loss or damage they have incurred. This means that the claimant is directly affected by the incident that has led them to seek compensation. In the context of insurance, this is a fundamental concept because it establishes the relationship between the insured and their insurance company.

In this scenario, the insured is typically entitled to coverage for their losses under the terms of their policy, whether it is for property damage, liability, or other covered events. Understanding the role of first party claimants is crucial for agents and brokers as they navigate claims processes and ensure that clients receive the appropriate benefits to which they are entitled.