What is Third Party Recovery?

Third Party Recovery refers to the process of seeking compensation from a liable third party for damages or losses incurred, often in the context of insurance claims or legal disputes. This typically occurs when an insured party experiences a loss due to another party's negligence or wrongful actions. Insurers may pursue recovery from the responsible party to recoup costs incurred from claims paid to their policyholders. Essentially, it allows for the transfer of financial responsibility from the injured party back to the party At Fault.