A Third Party Liability Insurance is obligatory for registration of your aircraft. This coverage is a compulsory that protects aircraft operators against claims for indemnity.
In aviation insurances we differ between a Third Party Liability and a Passenger Liability. As the name suggests, the Passenger Liability covers claims of passengers against the operator of an aircraft.
A combination of Third Party and Passenger Liability is called CSL-Coverage, which stands for Combined-Single-Limit. Nowadays nearly every multi-seat aircraft should prefer this alternative than two contracts for passenger and third party coverage.
