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First-Party Claim

What Is a First-Party Claim?

A first-party insurance claim occurs when a policyholder makes a claim against their own insurance company seeking compensation for a loss.

You, the person who purchased the policy, are the “first party.”

First party claim definition.

What Is the Difference Between a First-Party Claim vs. a Third-Party Claim?

A first-party claim is when the policyholder is filing a claim against their own insurance for benefits or reimbursement from a loss.

A third-party claim is when someone other than the policyholder is making a claim due to bodily injury, property damage, personal injury, or advertising injury. Most liability claims are third-party claims.

Who Files a First-Party Claim?

The owner of the insurance policy would make a first-party claim. This typically relates to damage to the policyholder’s property, for example:

  • Fire damage to your business-critical property 
  • Theft of insured equipment
  • A car accident involving your work vehicle
  • Wind damage to an awning or tent


Any claim you make against your own policy would be considered a first-party claim.

What Do First-Party Claims Mean for My Insurance Policy?

If you make a first-party claim, your policy will probably remain the same. However, in some instances, your insurance company could choose not to renew your policy or may decide to increase your premiums. 

This depends on several factors, including:

  • The number of claims reported over a specific period
  • The dollar amount paid on one or more claims
  • The steps taken by the policyholder to reduce their risk


If your insurance company determines that you are at high risk for first-party claims, they may not renew your insurance or charge you more.

What Is the Claims Process With FLIP?

You can make a claim on your FLIP policy in four easy steps: 

  • Click “File A Claim”
  • Add all the necessary information
  • A claims adjustor will contact you and the claim will be processed