Third party insurance, more commonly known as liability insurance, is liability cover procured by the insured (the first party) from an insurance company (the second party) for protection against claims by another (the third) party. The insured is responsible for its own damages or losses whether caused by themselves or the third party. Although third party insurance is typically associated with short-term car insurance, it may also apply to other unforeseen claims. These can include injuries sustained by guests on your property or even if you accidentally hurt someone else while out. Since people don't hesitate to file lawsuits these days, it is advisable to take out sufficient third party insurance to cover yourself for any eventuality. Most short-term insurance policies will include third party cover but you can often buy additional cover if you feel it is required.