Third party liability insurance

Provide us with your details and one of our insurance experts will contact you to discuss your requirements

Lisa Mary

Excellent service today. Thank you to driver 318, Rich, for making me feel calm and relaxed, and also to the Brazilian driver. Both very pleasant and approachable. I would deffo recommend Swoop

Aug 28, 2025

Iulia Popescu

James has been absolutely fantastic throughout the entire funding process. He guided us with clear, straightforward advice and was always quick to respond to any questions we had. Thanks to his support, we were able to secure the funds we needed swiftly and without any unnecessary complications. His professionalism, efficiency, and deep understanding of the funding landscape made what could have been a stressful experience feel smooth and manageable. I would highly recommend Swoop—and especially James—to any business looking for reliable, expert support in securing finance.

Aug 5, 2025

Mr B

Simple- Helpful - Accurate

Aug 5, 2025

Jodie Marshall

At a time when I needed some extra funding for my business, I went to SWOOP. They were absolutely amazing. My business is a social enterprise, we so have a not for profit clause which often means mainstream lenders don't like to lend. But these guys found me a company willing to lend at an amazing rate and with amazing terms (better than any social investor I've come across). I gave them what I thought was an impossible task on the off chance, and they delivered! So impressed with their professionalism, friendliness and super quick turn around! Thank you SWOOP!

Aug 5, 2025

Neil Jones

Just when you need that additional business boost, Swoop have you covered. Fantastic turnaround from Adrian and team. They kept me fully informed from start to finish, and with a follow up to make sure everything went well and all is good. Fantastic, highly recommended.

Aug 4, 2025

susan allan

had an amazing experience with BEN nicest taxi driver ever . helped us with a stressful end to the night and couldn’t thank him enough staying with us until we were all safe . if anyone needs a taxi i would recommend ben with swoop .

Aug 3, 2025

Jack

Absolutely brilliant company to deal with. Farhan was extremely helpful, friendly and very efficient from start to finish and have helped us get funding with minimal interest rates which will help the company repay quicker and expand faster. Thanks so much Swoop

Jul 21, 2025

Canada Business Leasing

Love working with this group.

Jul 17, 2025

Lindsay

Cynthia made the process really easy, the customer service was great through out the whole process. Would definitly recommend talking with Swoop and Cynthia!

Jul 11, 2025

Jamal Ogungbola

Great experience from start to finish, helped us secure funding for a new dryer for an independent care home. Very grateful to Adrian and Nichola for their support throughout.

Jul 8, 2025

Add a header to begin generating the table of contents

Page written by Chris Godfrey. Last reviewed on May 22, 2025. Next review due October 1, 2026.

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.

Add a header to begin generating the table of contents

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.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy.