Third Party Administrator
A company that handles claims processing and benefits administration on behalf of insurers or self-insured employers.
TPAs administer workers comp, health, liability, or warranty programs under contract. They are not the insurer but follow carrier or employer protocols and delegated authority.
Examples
A self-insured corporation uses a TPA to adjust its liability retentions and pay third party claims within guidelines.
Common Misconceptions
Insureds confuse TPA with insurer — legal responsibility remains with the policy issuer or self-insured entity.
Related Terms
Browse the Insurance Claims Glossary
Looking for more insurance and claims terminology? Browse the complete A-Z glossary or explore the Claims Pages Academy for licensing guides, coverage explainers, and more.
Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
