As Their Interests May Appear

Quick quiz: what is the relevance of the phrase "As Their Interest May Appear?"

A) the famous opening words of a Jane Austen novel
B) a little known Cranberries album from the early 1990s
C) the working title of Netflix-produced Jason Statham action movie, eventually retitled Kill Winner 4: The Reckoning
D) a common phrase in insurance contracts

As you probably guessed, the answer is (D), though we're ready to put any of the Kill Winners in our queue as soon as they drop.

The phrase "as their interests may appear" is common enough in the insurance game to get shortened to the initials ATIMA when they are referenced. The provision gives third parties the right to get included in the coverage, at least as far as their interests may appear.

When you own a company, you buy insurance to cover all your corporate responsibilities. But the financial interest of each individual item may be somewhat complicated. Some of your equipment might be purchased outright. Some might be mortgaged. Some items might be rented. Some equipment might be shared with other companies.

By tacking on the phrase "as their interests may appear," these complicated mixtures of interest and responsibility get baked into the contract. That way, the company purchasing the insurance doesn't have to list each situation individually. Think of it like a catch-all that allows more complicated scenarios to get covered automatically.