Omnibus Clause Legal Meaning and Definition

Here is a simplified definition of the legal term Omnibus Clause.

Omnibus Clause (noun)

An omnibus clause is a section in various legal documents that has broad application to multiple parties or scenarios. Here are two common uses:

1. In car insurance, an omnibus clause extends coverage to anyone who drives the vehicle with the car owner's consent, even if that person isn't listed on the insurance policy.

2. In wills and estate planning, an omnibus clause is a condition that distributes all the deceased's remaining property to the named beneficiaries after specific bequests, debts, taxes, and estate costs have been fulfilled.

It allows flexibility by covering expansive and unspecified scenarios or individuals.