Third Party Liability Insurance

Learn more about mandatory and optional car insurance in alberta.

Third party liability insurance. It is referred to as a third party cover since the beneficiary of the policy is someone other than the two parties involved in the contract the car owner and the insurance company. Third party liability is insurance against money which an insured may have to pay to. Motor third party insurance or third party liability cover which is sometimes also referred to as the act only cover is a statutory requirement under the motor vehicles act. It s important for business owners to think about third party liability insurance as it covers you for claims made by a member of the public against your business.

Liability insurance also called third party insurance is a part of the general insurance system of risk financing to protect the purchaser the insured from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy. Find a clear definition of third party liability insurance explained with practical examples. Third party cyber liability insurance provides liability coverage for businesses that are responsible for a client s online security. Nor does it cover theft of the car.

Third party liability coverage does not cover any damage to the driver s own rental car. If a client experiences a cybersecurity breach and sues third party cyber liability insurance can pay for your business s legal expenses. Meaning pronunciation translations and examples. 200 000 in third party liability coverage is mandatory.

Third party liability coverage in other provinces and territories. Third party liability definition. Third party liability coverage is the portion of an insurance policy that protects you if you re sued or threatened to be sued for a physical injury or damage to someone else s property. Third party liability insurance in alberta.

And it might not cover anything if the driver has broken the terms and conditions of the rental agreement or the relevant local laws. If a claim for damages exceeds this amount payment for property damage will be capped at 10 000. This includes protecting clients from cyberattacks and data breaches.