Omnibus Clause

What Does Omnibus Clause Mean?

An omnibus clause is a provision commonly found in automobile liability insurance policies. It broadens the policy’s coverage to include any person using or responsible for the use of the insured vehicle during an incident, as long as the person has permission from the principal insured party to use the vehicle.

Insuranceopedia Explains Omnibus Clause

The omnibus clause allows the named insured to grant permission to a permittee, who can then allow a third party (the second permittee) to use the vehicle. A common example is a parent giving their child permission to drive the car, and the child subsequently allowing a friend to drive it.

This clause typically extends coverage to any member of the insured’s household, as well as any individual using the vehicle with the insured’s knowledge or consent.