OMNIBUS CLAUSE Meaning and
Definition
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An omnibus clause refers to a provision commonly found in insurance policies, particularly in liability insurance, where it extends coverage to individuals or circumstances that are not explicitly mentioned or listed in the policy. This clause is a broad and expansive provision that aims to provide a greater scope of coverage and protect the insured against potential liabilities that may arise from unexpected situations.
The purpose of an omnibus clause is to ensure that the insured is safeguarded beyond the confines of the policy by encompassing scenarios or individuals not specifically named. It essentially extends the coverage to include any related parties, properties, or situations that might arise during the policy period, even if they were not initially contemplated or specified within the policy documentation.
In essence, an omnibus clause acts as a catch-all provision, enabling the insured party to benefit from the insurance coverage in situations that may not have been contemplated or foreseen while the policy was being formulated. This provision provides flexibility and adaptability to the insurance policy, ensuring that the insured is protected from unforeseen liabilities that might arise.
The inclusion of an omnibus clause is typically beneficial to policyholders, as it provides a broader range of coverage, potential cost savings, and peace of mind since they are protected from unknown risks or scenarios. However, it is essential for the insured party to review and understand the specifics of the omnibus clause to ascertain the full extent of their coverage.
Common Misspellings for OMNIBUS CLAUSE
- imnibus clause
- kmnibus clause
- lmnibus clause
- pmnibus clause
- 0mnibus clause
- 9mnibus clause
- onnibus clause
- oknibus clause
- ojnibus clause
- ombibus clause
- ommibus clause
- omjibus clause
- omhibus clause
- omnubus clause
- omnjbus clause
- omnkbus clause
- omnobus clause
- omn9bus clause
- omn8bus clause
- omnivus clause
Etymology of OMNIBUS CLAUSE
The word "omnibus" is derived from Latin and originally meant "for all". It comes from the combination of the Latin words "omnis" meaning "all" and "bus" meaning "for". In English, the term "omnibus" has been used since the early 19th century to refer to a vehicle or a compilation that contains a variety of different elements or components.
The word "clause", on the other hand, comes from the Latin word "clausula" meaning "a closing, conclusion, or end". In legal terminology, a clause refers to a distinct provision or section within a legal document or contract.
Therefore, the term "omnibus clause" essentially refers to a provision or section in a legal document that is intended to cover a broad range of scenarios or situations. It is commonly used to include various matters, rights, or provisions comprehensively in a single provision.
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