What does third-party insurance protect against?

Third-party insurance specifically protects against claims made by parties who are not directly involved in the insurance agreement. This type of insurance is designed to cover the legal liabilities that the insured party may incur to others, providing financial protection if the insured causes harm or damage to someone else or their property.

For instance, in the context of auto insurance, if a driver causes an accident that injures another person or damages their property, the third-party insurance will cover the claims made by the injured party. Thus, it focuses on safeguarding the interests of people who are outside the direct relationship between the insurer and the insured, effectively addressing potential legal and financial repercussions that could arise from the actions of the insured individual.

The other options do not align with the purpose of third-party insurance. Claims from the insured party pertain to first-party insurance, while claims from the insurer typically deal with claims handling and compliance issues. Insurance-related complaints do not pertain specifically to claims made by third parties, making those options irrelevant in this context.