What is First-Party Insurance?

Mindiola Law Firm > What is First-Party Insurance?

What Is First-Party Insurance?

If you have questions about first-party insurance, you’re probably dealing with one of the following issues:

  1. You may have questions about your commercial insurance policy language
  2. You need to submit a first-party insurance claim to your commercial insurance company, or
  3. Your commercial insurance company has delayed, disputed, undervalued, or denied a valid claim.

Our team of insurance claims litigation lawyers can answer any questions you may have about your situation and help your business obtain all the compensation you deserve from the bad faith insurance company.

What is a First-Party Insurance Claim?

If you are the insured in an insurance policy contract, you are the first party. You pay premiums to your commercial insurance company, the second party, in case your property or business suffers financial losses or damages from natural events (such as hurricanes, tornados, windstorms, hailstorms, fires, floods, etc.) or because of someone else (a third party).

A first party insurance claim is the valid claim you submit to your commercial insurance company according to the terms and conditions of the insurance policy.

What Resources Does a First Party Have Against the Second Party Insurer?

Dealing with claims denied or managing expectations about insurance not paying is frustrating. Recognize that a bad faith insurance company wants to wear you down. It wants you to accept its bogus decision to deny, delay, or underpay a valid first party insurance claim.

Under the law, the commercial insurance company owes a duty to you, its commercial insured. It must promptly, fairly, and accurately assess and investigate your valid claim. It must pay your valid claim.

Bad faith insurance companies’ succeed only win if you don’t fight back.

Questions about First Party Insurance Claims

An experienced insurance litigation attorney can help you deal with a commercial insurance carrier. If the insurer isn’t providing you with the immediate response expected, consider the many ways a lawyer can help, including:

  1. Failure of the commercial insurance company to pay out valid commercial claims
  2. Denial of the commercial insurance company to pay out a valid commercial claim
  3. Second party requires the first party to present extensive reports and documents to substantiate a property damage claim
  4. Second party failure to fairly and accurately investigate and assess the first party’s valid commercial property claim
  5. Second party assertions that the damaged property doesn’t meet specified “code requirements”
  6. Second party floats low-ball assessment and proposals to settle a valid first party commercial insurance claim

Our experienced insurance litigation team will pursue your commercial insurance carrier if it has previously denied, underpaid, or delayed payment of your costs related to full compensation for your property damages and losses.

Why Commercial Businesses Need an Experienced First Party Insurance Claims Law Firm

Ideally, your business retained an experienced first party insurance claims law firm to evaluate the original commercial insurance policy contract. Perhaps the first party insurance claims law firm assisted in comparing commercial insurers. It reviewed often confusing policy language before you agreed to the terms of the contract.

A commercial insurance policy is a contract. If you didn’t hire a first party insurance claims law firm in the past, it’s important to contact one before you submit a claim.

If you’ve already submitted a first party insurance claim and the insurer has delayed, undervalued, or denied your claim, it’s very important to consult a first party insurance claims law firm now. You need attorneys with specific insurance litigation experience.

Finding a qualified commercial insurance claims law firm when you need one can be challenging. That’s because commercial insurers work very hard to “lock up” experienced insurance lawyers in the performance of their work. That’s because if the insurance litigators work for the insurance company, they can’t work for you.

You need an experienced insurance litigation law firm without conflicts of interest. You want knowledgeable insurance litigators who can work for you.

Call the Mindiola Law Firm. We’re dedicated to you, the commercial insurance customer.

Why Your Business Pays for a First Party Insurance

First party insurance is an effective financial risk management tool for many businesses around the world. Because the commercial insured can’t predict when a natural disaster will strike, the owner or board of directors needs to know there’s a plan in place to sufficiently allow the commercial enterprise to recover from a hurricane, wildfire, flood, windstorm, tornado, and so on.

Your first party insurance may be used if an unexpected natural disaster, accident, or incident occurs. It may be applied in conditions in which the insured’s damages or losses were caused by the first party—or by a third party.

First party insurance isn’t always sufficient to completely protect the business in the aftermath of a catastrophic event. Insurance companies are sadly well-known for practicing certain bad faith behaviors, such as denying your valid claim after a disaster or delaying payment when you’re in dire need.

After you’ve taken the necessary steps to insure your commercial enterprise in the event of a disaster, it’s disappointing to realize that your commercial insurer may be less than happy to make good on the claim.

Bringing a Lawsuit against a Commercial Insurance Company

Dealing with a bad faith insurer is exhausting. You’ve probably been patient and given the commercial insurance company the benefit of the doubt.

Realize that the insurer has lots of resources at its disposal. Most maltreated commercial insureds are busy dealing with getting back to business in the aftermath of a disaster. They might not know what next steps to take when the insurer presents a low-ball settlement offer.

Industry statistics show that many commercial insureds accept a deal that doesn’t make them financially whole. Even though the law requires the insurer to bring the first party insured back to its pre-loss financial health, insurance companies are known to take opportunistic advantage of their clients.

Our team of insurance claims litigation lawyers can help your business obtain all the compensation you deserve from the bad faith insurance company. Call Mindiola Law Firm now to discuss your potential case at .

If your home or business was damaged, there’s still time to file a claim. Contact us now at or reach us online.