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Thread: Omnibus Clause

  1. Mr. Bond
    Mr. Bond is offline Member
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    Omnibus Clause

    What is an Omnibus Clause?
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  2. Bond Magician
    Bond Magician is offline Senior Member
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    Omnibus Clause

    Quote Originally Posted by Mr. Bond
    What is an Omnibus Clause?

    Omnibus language covers every known entity, subsidiary, and affiliated or associated entity as exist, as existed in the past, or as may be constituted in the future.
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  3. Mr. Bond
    Mr. Bond is offline Member
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    Omnibus

    Bond Magician - can you please rephrase that in layman's terms?
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  4. Bond Magician
    Bond Magician is offline Senior Member
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    Omnibus Clause

    Quote Originally Posted by Mr. Bond
    Bond Magician - can you please rephrase that in layman's terms?
    In many instances, an omnibus clause or omnibus language is used in indemnity agreements to cover one or more company. A Surety company may require this specific language to be used on an indemnity agreement. The language states that all subsidiaries or affiliates that are owned by the company or are created, controlled, managed or acquired by the company are covered.
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  5. Surety Queen
    Surety Queen is offline Surety Professional
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    Motor Vehicle Dealer Bonds

    Quote Originally Posted by Bond Magician
    In many instances, an omnibus clause or omnibus language is used in indemnity agreements to cover one or more company. A Surety company may require this specific language to be used on an indemnity agreement. The language states that all subsidiaries or affiliates that are owned by the company or are created, controlled, managed or acquired by the company are covered.
    In many instances, the owner of the company applying for a bond may also own some other companies. If the company looking for the bond is new, and the other companies are quite established and profitable, Surety may allow all companies to indemnity to enable a better rate for the new company.

    It's confusing - but Bond Magician's explanation is correct.
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