Legal Definitions - ATIMA

ATIMA stands for As Their Interests May Appear.

This phrase is commonly found in insurance policies. It's a legal mechanism that acknowledges and protects the financial or ownership interests of various parties in insured property, even if those interests are not fully detailed or might change over time. Essentially, it ensures that if a loss occurs, the insurance benefits will be distributed to whoever has a legitimate, provable interest in the damaged property at the time of the loss, up to the value of their specific interest.

Here are some examples to illustrate how ATIMA works:

• Construction Project Insurance: Imagine a large commercial building under construction. The general contractor takes out an insurance policy to cover the materials and work in progress on the site. However, various subcontractors (e.g., electricians, plumbers, roofers) and material suppliers also have a financial stake in the materials they've delivered or the work they've completed. An ATIMA clause in the general contractor's policy would ensure that if a fire or other covered event damages the site, the insurance payout would not only compensate the general contractor but also protect the financial interests of the subcontractors and suppliers for their respective contributions, as their interests in the property may appear at the time of the loss.

  This example demonstrates ATIMA by showing how multiple parties with evolving and sometimes unspecified financial stakes in a single property (the construction project) can all have their interests protected under one insurance policy.

• Leased Equipment Protection: A manufacturing company leases several expensive, specialized machines from a leasing firm. As part of the lease agreement, the manufacturing company (the lessee) is required to insure the equipment. The insurance policy names the manufacturing company as the primary insured, but it also includes an ATIMA clause for the leasing firm (the owner). If one of the machines is severely damaged in an accident, the ATIMA clause ensures that the leasing firm, as the true owner of the equipment, receives compensation for its financial interest in the machine, even though they weren't the primary policyholder. The payout would cover the leasing firm's remaining financial interest in the damaged asset.

  This scenario illustrates ATIMA by protecting the ownership interest of a party (the leasing firm) that is not the primary insured but has a significant, clearly defined stake in the insured property.

• Shared Property Ownership: Consider a situation where two business partners jointly own a commercial property, but only one partner is primarily responsible for managing the property and arranging its insurance. The insurance policy for the building might list the managing partner as the named insured but include an ATIMA clause to cover the other partner. If the building suffers significant damage from a covered peril, the ATIMA clause ensures that both partners' ownership interests are recognized and protected by the insurance payout, proportionate to their respective shares in the property, as their interests may appear at the time of the claim.

  This example highlights ATIMA's role in safeguarding the interests of co-owners where one might be the primary point of contact for insurance, but all legitimate ownership stakes need to be acknowledged.