phrase
first party
In plain English
Coverage that pays you, the insured, for your own losses — as opposed to third-party (liability) coverage that pays others on your behalf.
Your homeowners building coverage is first-party. Your auto collision coverage is first-party. Cyber breach response costs are first-party. The 'third party' is everyone outside the insurer-insured relationship.
What it covers
Direct losses to the insured's own property, income, or interests, as defined by the policy.
What it does not cover
It does NOT cover losses to others — liability claims by third parties run on third-party coverage.
Where it trips people up
Many policies are bundles of first- and third-party coverages. A homeowners policy: dwelling and personal property are first-party; personal liability (Coverage E) is third-party.
The technical version
Insurance providing benefits directly to the insured for the insured's own losses, distinguished from third-party (liability) insurance that responds to claims made against the insured by others.