Insurance relationships involve more than one side. The first party is the insured—the person or entity that owns the policy and whose loss is covered under first-party coverages such as property, auto collision, or business interruption. The insurer is the second party; claimants against the insured are third parties.

First-party claims are those the insured makes for its own damage or loss. The insurer’s duty is to indemnify according to the policy terms. Bad-faith doctrines in many jurisdictions impose extra-contractual duties on the insurer’s handling of first-party claims.

Distinguishing first-party from third-party contexts matters for coverage analysis, claims handling, and litigation. Policy language, statutes, and case law treat the two differently. Clear identification of who is the first party avoids confusion when multiple entities appear on a policy or claim.

• The insured under an insurance policy
• Makes claims for own losses under first-party coverages
• Distinct from third-party liability claimants
• Subject of specific claims-handling duties