Q&As

What is the difference between joint insured, co-insured and composite insured?

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Published on LexisPSL on 11/11/2015

The following Construction Q&A provides comprehensive and up to date legal information covering:

  • What is the difference between joint insured, co-insured and composite insured?
  • Co-insured
  • Joint insured
  • Composite insured

What is the difference between joint insured, co-insured and composite insured?

In financing and construction documentation for development projects it is usual to see requirements for parties to arrange insurance so that a lender, or other interested party, is joint insured, co-insured or composite insured—but what is the difference?

Co-insured

Referring to ‘co-insurance’ can mean either joint insurance, or composite insurance. Either way, being co-insured will offer the lender, or other interested party, greater protection than it would if it only has its interest ‘noted’ on the policy.

Joint insured

In a joint insurance policy, both parties share identical interests. Each party therefore shares the same risk and only one policy of insurance is created.

As there is only one policy shared by both

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