Third party liability insurance

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Lee

We turned to Swoop for support with securing funding for our company’s expansion, and I’m thrilled to say they delivered above and beyond our expectations. From the very start, Adrian and Nichola were outstanding – professional, knowledgeable, and always willing to go the extra mile to help us achieve our goals. The process was seamless, with clear communication every step of the way. They took the time to understand our business, worked diligently to identify the best funding options, and ensured everything was in perfect order. Their expertise and guidance gave us the confidence to move forward and grow the business as planned. Thanks to Swoop, we now have the funding we need to take the next step in our journey. I can’t recommend them highly enough for any business looking for financial solutions. A massive thank you to the Swoop team for helping us turn our vision into a reality. I’ll definitely be returning when we take on our next stage of growth

Dec 17, 2024

Chris Palmer

We have used Elizabeth on 2 recent funding transactions. She is a star. Always checked in at end of day where things were at & updated me. Great customer service & would certainly recommend her. Thankyou Elizabeth.

Dec 12, 2024

Mike maur

It's been a pleasure dealing with Elizabeth, Def a Gem for her business. Amazing communicator and process dealing with all the paperwork was made easy and stress free. Keep it up !

Nov 28, 2024

Nasir Abbas Kazmi

I applied vehicle Finance through Swoop & lady Ikra help me from Beginning to end,she s very professional & helpful. Its just took 3 to 4 days & now i got new vehicle. I received Best customer services from Ikra & High recommend for this Swoop Finance.

Nov 26, 2024

Hazel Cuizon

Ayesha was very prompt and friendly to deal with and answered all my questions in a timely and professional manner. Very happy, highly recommend 🙂

Nov 24, 2024

Andrew Frazer

Cynthi was a fantastic help in organising what was needing and obtaining finance

Nov 8, 2024

Chris Skeates

Predrag and the Swoop team have been outstanding. Very attentive to our needs and staying on top of our funding request with their partners.

Oct 24, 2024

Leo Tsuo

Great experience. They quickly understood my needs and was fast to find a lender that met those needs. Highly recommend

Oct 22, 2024

Kash De Silva

I had a fantastic experience working with Elizabeth Tan for my business lending needs. She provided exceptional support and guidance, helping me navigate the process with ease. Her expertise and dedication were instrumental in taking my business to the next stage. I highly recommend her to anyone looking for lending assistance!

Oct 15, 2024

Shannon T

Cynthia has gone above and beyond, explained the process, consequences, and found me the most suitable solutions for my business in a very busy time! I found the help (even before I was guaranteed to use them) invaluable and the help made all the difference!

Oct 9, 2024

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Page written by Chris Godfrey. Last reviewed on September 24, 2024. Next review due October 1, 2025.

Accidents happen. There’s no getting round it. Nor the fact that they can bring crippling claims against your business if you cause personal injury or property damage to someone else. To eliminate this kind of risk, businesses buy third-party liability insurance – all-weather umbrella cover that can protect organisations from the financial storm if the worst should ever happen.

Read on to learn more about third-party insurance and how it can take the sting out of any claim.

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What is third-party insurance?

There are two types of third-party insurance:

Third-party liability insurance: Also known as public liability insurance, this is a type of business insurance that protects your organisation if someone is injured, or their property is damaged because of the services that you or your business provides. This type of cover, also known as PL or liability insurance, is designed to protect your company against third party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your business premises – including building sites – whether you’re at fault or not.
Vehicle third-party insurance: Also known as third-party only, or TPO – this is the most basic form of vehicle insurance required under US law. Applicable to private and commercial vehicles – motorcycles, cars, vans and trucks – it will cover you for damage your vehicle causes to another vehicle, person or property, but your own vehicle won’t be covered if it needs to be repaired or replaced. Additionally, TPO won’t cover your vehicle from theft, vandalism, or if it is damaged or destroyed in a fire unless you choose to buy a different kind of policy known as third-party, fire and theft, or TPFT.

What is the importance of third-party insurance?

Third-party insurance protects the insured from potentially catastrophic compensation claims for any personal injury or property damage they have caused to another person, business, or organisation. Without third-party insurance, you could end up paying extremely high damages to someone you have injured, or for the repairs or replacement of their property, whether or not the harm was intentional.

Who are the parties in third-party insurance?

There are three parties in third-party insurance:

First-party: The insured (you).
Second-party: Your insurance company.
Third-party: The person or business who has suffered injury or property damage and is making a claim.

What is the difference between first-party and third-party claims?

It depends on who is making the claim. If you’re the insured (the first-party), and you suffer loss – for example, someone smashes your shop window but they are never identified – and you make a claim on your business insurance, you are making a first-party claim. Alternatively, if you or your business causes injury or property damage to someone else (the third-party) and they make a compensation claim against your liability insurance, they are making a third-party claim. So:

First-party claim: You claim against your own insurance.
Third-party claim: Someone else makes a claim against your insurance.

What does third-party insurance cover?

Third-party liability insurance can cover the cost of legal expenses and compensation costs if someone sues your business for injury or damage.

For example, you run a window-cleaning business and someone trips over one of your ladders and suffers injury, or your delivery van accidentally scrapes a customer’s car that’s parked on your forecourt. In these kind of situations, the person who has suffered injury or damage (the ‘third-party’) could claim compensation from you. The claim can include things like medical bills, lost income, legal fees, and replacement or repair costs. (If your public liability insurance covers it, your own legal expenses will usually be paid by your insurer).

How much does third-party insurance cost?

The average cost for a third-party insurance is $130 per month, but the premium you pay will depend on your business type, where you operate, your business risk profile, the excess you agree to pay and any optional extras you choose to buy.

How Swoop can help

All business involves risk, but that doesn’t mean you have to suffer the consequences if things go wrong. Don’t let a simple accident or error become a catastrophe for your business. Contact Swoop today to compare top-quality third-party liability insurance from different providers and to discuss all your business insurance needs.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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