Unlimited insurable interest

Unlimited insurable interest refers to a situation in insurance where an individual or entity can purchase as much insurance as they desire on a specific subject without restriction, typically because they have a substantial and ongoing financial interest in that subject. This concept is most commonly applicable to businesses insuring their own assets or interests, as they can justify the need for larger coverage amounts based on potential losses. However, insurable interest must be legitimate and established at the time of the policy's inception to prevent moral hazard. In personal insurance, such as life or health, insurable interest is usually limited to prevent speculative practices.