What is a first-party claim?

A first-party claim is a claim you file with your own insurance company for losses you sustained, such as property damage or business income loss.

What you need to know

When your restaurant suffers a fire and you claim on your property insurance, or when you claim business interruption coverage for lost income, these are first-party claims. You’re the policyholder claiming benefits under your own policy.

Why it matters for restaurant owners

First-party claims are generally more straightforward than third-party claims because you’re dealing directly with your own insurer. However, you still must prove your loss, document damages thoroughly, and comply with policy requirements (like timely notification and protecting property from further damage).

Understand your duties after a loss—failing to mitigate damages or file timely notice can jeopardize coverage.