What term describes the party who has suffered damage in a liability contract?

In the context of a liability contract, the term that best describes the party who has suffered damage is "Claimant." In liability insurance, the claimant is the individual or entity that has incurred a loss or injury due to the actions or negligence of another party, typically the insured party.

When a claim is made, the claimant seeks compensation from the responsible party’s insurance company to cover their damages. This relationship is foundational to liability contracts, as they are designed to protect the insured from financial loss caused to others, which clearly defines the claimant's role in the process.

The other terms are related but do not accurately describe the party that has suffered damage. The first party refers to the insured in the contract, the insurer is the company providing the insurance coverage, and the third party usually refers to someone besides the first party and the insurer, often involved in the situation but not necessarily the one who has suffered damage. Therefore, "Claimant" clearly identifies the person or entity seeking recovery for damages sustained.