Risk & Insurance Glossary - O

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N O P Q R S T U V W X Y Z

OBLIGEE – In bonding, the entity in whose favor an obligor promises something. This term is most frequently used in surety bonds, where it refers to the person, firm, or corporation protected by the bond.
OBLIGOR – One who is bound by an obligation; the promissory, or person obligated to do something.
OCCUPANCY – In insurance terminology, this refers to the type of property and how it is used. It is an important consideration in computing rates and determining the amount of insurance a company is willing to write on that property.
OCCUPANCY PERMIT – An endorsement on an insurance policy permitting occupancy that might otherwise suspend the contract or make it invalid.
OCCUPATIONAL ACCIDENT – An accident occurring in the course of one's employment and caused by inherent or related hazards.
OCCUPATIONAL DISEASE – Impairment of health caused by continued exposure to conditions inherent in a person's occupation.
OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) – A Federal law establishing safety and health work standards on a nationwide basis. States have similar laws.
OCCURRENCE – An accident including continuous or repeated exposure to conditions which result in injury to persons or damage to property or an act or related series of acts which inflict injury to persons or damage to property.
OCEAN MARINE INSURANCE – Insurance protecting against damage or loss of subject matter of insurance as a result of perils of the sea. Includes protection on land while property insured is being transported or prepared for ocean or public water shipment.
OMNIBUS CLAUSE – A clause extending coverage to unnamed persons other than the named insured, such as members of the insured's family, or users of a car with the owner's permission.
OPEN CARGO POLICY – A policy that covers all goods shipped or received by the insured during the policy’s term.
OPEN END POLICY – A policy having no stated expiration date; it continues to be in effect until canceled.
OTHER INSURANCE CLAUSE – A clause in an insurance policy stating the effect thereon when there are two or more policies covering the same risk; e.g., how the policies will respond in case of loss.
OUTAGE INSURANCE – Insurance against loss due to failure of machinery to operate.
OVER INSURANCE – A risk insured for more than its fair or reasonable value and which may create carelessness on the part of the insured or increase the moral hazard possibilities.
OWNER'S, LANDLORD'S, AND TENANT'S LIABILITY INSURANCE (OL&T) – Insurance against loss due to claims for damages against owners, landlords, or tenants arising out of ownership, maintenance, or use of specified premises.