Third-Party Liability Coverage

by Pawlicy Advisor
Pet Insurance Terms
Third-Party Liability Coverage

What is Third-Party Liability Coverage?

Third-party liability coverage is a type of insurance that protects the policyholder from being sued by a third-party for damage incurred by their pet. There are two primary types of liability coverage for pet-related incidents: the first is for claims that pertain to personal damages a third-party incurs for the cost of medical care after being attacked by a pet; the second is for property damage, which covers costs related to the destruction of one’s home, yard, furniture, or possessions. Both forms of liability coverage also include the cost of legal defense the policyholder may require if a third-party takes them to court on account of their pet.

How Third-Party Liability Coverage Works

All insurance plans vary by provider, but generally, a pet owner with liability coverage pays a monthly premium toward an annual deductible, so they can minimize the financial risk of an expensive lawsuit caused by their animal’s behavior. If they were to be sued by a third-party because their pet caused physical injury, hospital bills, ongoing medical treatment, psychiatric care, and emotional trauma, they could face thousands of dollars in fines. In addition to these financial damages, they may also be required to pay for the third-party’s legal representation on top of their own. For many pet owners, this could result in financial ruin, but liability coverage only requires policyholders to pay for a portion of damages, and the insurance provider covers the rest.

Key Takeaways

  • Third-party liability coverage can protect you financially if your pet injures another person or damages someone else’s property.
  • Insurance companies help by reimbursing the third-party for the costs of medical treatment or property repair.
  • Third-party liability also provides coverage for legal defense in the event someone sues for pet-related damages or injuries.

Continue Reading

An underwriter is a profession within the pet insurance industry who evaluates the risk of taking on new members.
Read More.
Vacation Cancellation Costs
Vacation cancellation costs refer to any unrecoverable travel or accommodation expense incurred by canceling a vacation or ending it early. during your vacation or within a week of your vacation date.
Read More.
Waiting Period
A waiting period is the time you need to wait after enrolling and being approved for a pet insurance policy for your coverage to begin.
Read More.

See related articles

This pet insurance comparison guide will help you understand the types of pet insurance available, find out what each plan covers, discover top providers, and find the best coverage and price options across the web.

17 minute read

How To Compare Pet Insurance Plans

Pet insurance can help you pay for the cost of veterinary care if your pet becomes sick or injured. Learn more about how pet insurance works and what it covers here.

18 minute read

How Pet Insurance Works: Your Essential Guide

Is pet insurance is worth it for your dog or cat? We cover EVERYTHING pet parents should consider when making the decision to enroll in coverage.

16 minute read

Is Pet Insurance Worth It In 2024? Here’s A Vet’s Perspective

If your pet has a pre-existing condition, don’t panic just yet. You can still get pet insurance coverage, and you likely have other options to save on your vet bills, too.

7 minute read

Is There Pet Insurance That Covers Pre-Existing Conditions?

Girl holding dog

Compare Top Pet Insurance Companies

A family with pets that are insured by Pawlicy Advisor
Pawlicy Advisor is the leading independent marketplace for finding the best coverage for your pet at the lowest rate.
Join 2,438,795+ insured dogs and cats across the US.
Get a Quote
Our pet insurance partners
ASPCA Pet Health Insurance Logo
Pets Best Pet Insurance Logo
Embrace Pet Insurance Logo
Pumpkin Pet Insurance Logo
MetLife Pet Insurance Logo
Prudent Pet Insurance Logo