An Interested Party is someone who has a financial or legal interest in the insured asset or activity being covered. Listing an Interested Party on your policy acknowledges their interest, but it does not provide them with the full protection of the policy. The main purpose is to ensure their stake is recognised, particularly when there is a financed asset or contractual requirement.
Common examples include:
- A financier, bank or lender with a financial interest in a motor vehicle, equipment, or property
- A landlord with a vested interest in the property being leased
- A supplier or contractor who requires recognition of their interest in insured goods or materials
To add an Interested Party, provide us with their name, their relationship to your business, and the reason they need to be noted. We’ll arrange the update with your insurer and issue a revised Certificate of Currency.
What is the difference between an Interested Party and a Named Insured?
A Named Insured is the legal entity or entities that hold the insurance policy. They have full rights under the policy, including making claims, receiving benefits, and being covered for liability. For example, if you run a company, the company itself would normally be listed as the Named Insured.
An Interested Party, on the other hand, is only noted for their financial or legal interest. They are not entitled to make claims or receive direct cover under the policy. Their inclusion is more about recognition than protection.
Example:
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If you finance a work vehicle through the bank, you are the Named Insured because you own and use the vehicle. The bank is listed as the Interested Party because they have a financial interest until the loan is repaid.
Understanding this distinction is important, as confusing the two can create problems at claim time.
We will guide you through whether someone should be noted as a Named Insured or an Interested Party, ensuring your policy reflects your structure and obligations correctly. Contact us to make updates to your
