All you need to know about third party liability insurance in Texas
What is third party liability Insurance Texas?
When you sign an insurance contract with your insurance carrier you are the first party while the carrier is the second party. Third party refers to any other party who gets affected, however, is not part of the contract. This third party is typically a part of the public. So third party liability insurance Texas basically covers you against the claims made by any member of the public. This coverage extends to legal expenditure and compensation with regard to the limit set as per your insurance policy.
Third party insurance claimants
Third party liability insurance Texas is a term which is widely used in case of corporate insurance. Examples of third party claimants include client, vendor or any member of the general public who gets in touch with your business on your building or the street. If they face any injury or any of their property is damaged because of your business or work they can make a claim against you.
Claims made by third party
There are any examples whereby third parties can make claims against you. Consider a situation where you have a construction business. Your employee is working on a building let’s say scaffolding bricks and accidentally one of the bricks falls and breaks the window screen of somebody’s car parked down. The person to whom the car belongs may file for compensation against you.
Another example of a claim could be if you are a shop owner and your vendor comes to your shop to deliver the supplies. If he trips over the wet floor, he might ask for compensation if he sustains serious injuries.
Apart from, there are cases in which third party can be the one responsible for damage hence claims being made against the third party. The most common examples of this case are of parents of teenagers. below the age of eighteen, whose reckless driving causes injuries to others. So parents who are the third party in such cases are dragged to the court and claims are made against them.
Moreover, even the government can be the third party against whom a claim can be made. If you get into an accident with some other car, but the fault is actually of the government who did not build good roads so a claim can be made against the government.
About third party liability insurance Texas
Third party liability insurance in Texas is that Texan courts maintain that employees must abide by the employment laws when the accident takes place. That is, they must be working within the authority as defined by their job description.
They must be doing the specific tasks that they are required. Such as sales person must be selling while delivery drivers must be driving the vehicle. And they must be working in furtherance of their employer’s company. If all these conditions are fulfilled the business owner would be responsible for any third party claim. The claims can be made for both monetary and non monetary damages.
This is all you need to know about third party liability insurance Texas.