statutory omnibus clause
- A legal phrase referring to a mandatory rule requiring an auto insurance policy to offer coverage to any individual, given they are using the vehicle with the direct or inferred consent of the policyholder
- After the accident, John discovered the statutory omnibus clause in his insurance policy that covered the damages caused by his friend who was driving his car with his permission.
- The statutory omnibus clause ensures the policyholder's protection, even when another person is operating the vehicle with their consent.
- Under the statutory omnibus clause, the insurance company had to cover the accident costs after Sarah's brother wrecked her car even though she was not the driver at that time.