In the construction industry, contractors are often requested to
provide insurance cover for every interested party on the
project.
There are differences between being a named insured compared
with being merely noted as an interest on a policy. If a party is a
named insured, it is known as a co-insured under the policy and it
effectively has the same rights and obligations under the policy as
the principal insured. In contrast, an interest noted might enjoy
some benefits of being covered but not share all of the rights and
obligations that a named insured would have. Both the named insured
and an interest noted can make a claim on an insurance policy.
Section 48 of the Insurance Contracts Act 1984 (Cth)
(ICA) entitles an interest noted to make a claim
on the policy for a loss where a party is specified as covered by
the policy. However, s48 of the ICA does not go as far as making an
interested party an insured under the policy.
