What is As Their Interests May Appear (ATIMA)
As their interests may appear (ATIMA) is text in an insurance policy that allows other parties to be added to the coverage. As their interests may appear, or ATIMA, allows an additional insured party to receive insurance coverage without having to list out each insured's interest in the policy.
BREAKING DOWN As Their Interests May Appear (ATIMA)
When a company purchases an insurance policy, it becomes the named insured, but in many cases there are other individuals or groups that also have insurable interests. Another firm may have rented equipment to the named insured, for example. These other parties may be listed in the policy as an “additional insured”, but rather than list out every item owned by the additional insured that is covered under the policy, the contract will say “as their interests may appear”.
Additional insureds are often limited to the amount of insurable interest they have in the risks covered in the insurance policy. For example, a company purchases property insurance policy to protect against damages to the contents of its office building. The company rents a water cooler from a third-party, and that party is included as an additional insured. The interest of that insured party rests only in the value of the water cooler and not to other items in the building.
Additional insureds may not have the same rights as the named insured in the policy itself. The additional insured may find that the named insured has canceled the policy or changed coverage, and the named insured may not be required to notify the additional insured of these changes at all.
If a claim is made against the insurance policy, an additional insured party with an interest listed as ATIMA may be listed in the overall claims settlement. How the additional insured is paid depends on how the policy processes claims. It may write a single check that has to be resolved between the parties with insurable interests, or it may write multiple checks according to the specific interests of the parties.
History and Common Use of ATIMA
ATIMA is common in builders risk policies. Underwriters historically may have borrowed the phrase from other marine policies or permanent property policies of owners that provide coverage for contractors' interests. The use of the phrase may also be reinforced in part due to the language in standardized contracts commonly used for construction work. For instance, the American Institute of Architects General Conditions requires property insurance to include the interests of the owner, contractor, subcontractors, and sub-subcontractors in the project