Whom can an enforceable contract of insurance only benefit?

An enforceable contract of insurance is designed to protect individuals or entities that have a vested interest in the insured subject. This concept is known as "insurable interest," which refers to the requirement that a party must stand to lose financially if a covered event occurs. Only individuals or entities that have this financial stake in the subject matter of insurance can enforce the contract.

For example, a homeowner has an insurable interest in their property because they would face financial loss if the house were damaged. Similarly, a business owner has an insurable interest in their business assets. This requirement is fundamental to the concept of insurance as it ensures that policies are used as intended and prevents moral hazard where individuals might claim benefits without having anything at risk.

In contrast, those who do not have a financial stake in the insured property or situation may not be able to enforce the contract. Thus, only individuals with an insurable interest are entitled to benefit from an insurance policy, aligning the contractual obligations with the principles of risk management and contractual fairness.