Insurable interest is the legal right to insure. The three essentials of insurable interest are: The existence of a potential legal liability which is capable of being insuredSuch potential liability must be the subject matter of insurance, andThe insured must bear a legal relationship to the subject matter whereby he will benefit on freedom from liability and will lose financially on creation of liability.Liability Insurance, Lift Third Party Liability : Policy covers legal liability for accidental bodily injury/accidental Direct damage to wearing apparel or personal effects of third parties in connection with insured lift including machinery, plant, door, safety devices or other appliances.