Omnibus Clause Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Omnibus Clause, written in plain English, along with examples of how it is used.

What is Omnibus Clause?

1)A part of an automobile insurance policy which aims at providing insurance coverage to any other person using the automobile with the permission of the insured whether or not their names are mentioned in the policy. 2)A condition that is agreed upon in a judgemen to give away the entire property of the dead person to all the people and entity named in the will.

History and Meaning of Omnibus Clause

The Omnibus Clause in automobile insurance policies aims at expanding the coverage of the policy to include any person using the insured automobile with the owner's permission, regardless of whether their name is mentioned in the policy or not.

The term "omnibus" finds its roots in the Latin word "omnibus," meaning "for all." In the legal context, an omnibus clause is a general and comprehensive provision that includes many things or covers various contingencies in one statement, thereby simplifying the language and the length of the contract.

In the context of a will or trust, an omnibus clause is a provision that can be added to the documents to dispose of property not specifically addressed in the will or trust.

Examples of Omnibus Clause

  1. A car owner lends their vehicle to a friend, and the friend gets into an accident. The omnibus clause in the owner's insurance policy would provide coverage for any damages or liability caused by the friend while driving the car with the owner's permission.

  2. A will contains an omnibus clause, which says that any property not specifically bequeathed to a beneficiary would be distributed equally among all the beneficiaries named in the will.

  3. A city council passes an omnibus bill that bundles up several unrelated pieces of legislation into one package. The omnibus clause in the bill would cover all the topics addressed in the individual provisions.

Legal Terms Similar to Omnibus Clause

  1. Default judgment: A judgment that is entered in favor of one party because the other party has failed to appear or otherwise respond to the lawsuit.
  2. Indemnification: A contractual or legal provision that requires one party to compensate the other for any losses or damages caused by specific events or circumstances.
  3. Force majeure: A contractual provision that excuses a party from fulfilling its obligations due to unforeseeable events, such as natural disasters, war, or government actions.