Third Party Insurance

What is Third Party Insurance?   Well the one that is purchasing the insurance, You for example is the First Person.   The second Person is the Insurance company and the Third Person is the one seeking for damages.   So why do you have third party insurance?  For example, if you have a customer coming to your office and accidentally slip and hurt himself or herself seriously?  Who is to pay?  No one can guarantee that such things do not happen.   This is where Third Party Insurance comes in.   The Second Party - the Insurance company will pay so that the First Party is insured and secured.   Of course the Second Party needs to get something so as to make it worthwhile to protect the first Party and this is known as the Insurance Premium.