First Party Claims: Defining First Party Claims - Part 1 Of 7

First Presented at the CBA-OBA Professional Development Program: Fast Out of the Gate: An Insurance Law Primer

An insurance policy is a contract between the insurer and the insured. A 'first party' is the party who is insured under an insurance policy and is often referred to as the policyholder or the insured. If an insured makes a claim directly against his/her own insurance company (the 'insurer') in reliance on an insurance policy, this is referred to as a 'first party claim'.

Some common examples of a first party claim are:

• A homeowner who suffers damage to his/her home as a result of a fire and the insurer refuses to cover all or part of the loss
  
  
• An individual who becomes unable to work and the insurer refuses to pay income replacement or mortgage payments