O
Object,
see Boiler & machinery insurance.
Obligee
- A term used in surety bonds to refer to the individual or firm that
is to benefit from the bond’s protection. A performance bond, for example,
provides the obligee property owner with recourse if the bonded contractor,
the principal, fails to perform.
Obligor
- A term used in surety bonds to refer to the individual or firm bound
by an obligation. Also known as the "principal."
Occupancy
- In general, a condition affecting the desirability of property policies.
Occupational
Safety and Health Act (OSHA) - Passed in 1970, this law promulgated
strict work-safety regulations, and set up the mechanism to enforce
these rules through fines for violations, and closure of unsafe plants.
Occurrence
- In general, an event that triggers coverage under any policy. Specifically,
an event that triggers coverage under an occurrence-based liability
policy. Such a policy covers injury or damage that occurs during the
policy period even if claim is brought months or even years after the
policy has expired - see Claims-made for the alternate arrangement.
Also see Accident.
Ocean
marine - Insurance coverage for vessels and property in ocean shipping.
"River marine" is the term referring coverage for inland shipments
on water. "Motor truck cargo" refers to coverage for property
transported over highways.
Off
premises cover - Commercial property policies commonly establish
a small coverage limit that applies to property temporarily away from
the insured’s place of business.
Omnibus
clause - An agreement in most automobile liability policies and
some others that extends the definition to include to others without
the needing to name them. An example would be a policy that covers the
named insured and "those residing with him."
Open
perils - Property coverage that applies to risks of loss on a general
basis, in contrast with policies that cover for specifically identified
perils ― see Named perils. The old term for open perils was "all
risks."
Open
rating - A state rating system that allows the insurer to use rates
without prior approval. Also referred to as "open competition."
Operating
ratio - The sum of the combined ratio plus investment income.
Ordinance
or law coverage - This insurance responds to property loss or damage
necessitating repair, demolition, or rebuilding in accordance with current
building codes.
Ordinary
payroll - Payroll allotted to employees whose services could be
curtailed in event of a long-term shutdown of a business without a harmful
effect on reopening. This figure is important in calculating business
income insurance exposures.
Other
than collision insurance (automobile), see Comprehensive physical
damage (automobile).
Other
insurance - When two or more policies cover the same interests for
the same exposures, each policy is said to represent "other insurance"
to the other. Most insurance policies contain clauses that specify how
or if claims will be paid if other insurance exists for the same exposures.
Outer
Continental Shelf Lands Act - This act makes the Longshore and Harbor
Workers Compensation Act apply to work involving the development of
the natural resources of the outer continental shelf. A special endorsement,
the Outer Continental Shelf Lands Act Coverage Endorsement, amends workers
compensation policies to provide coverage for this exposure.
Owners
and Contractors Protective (OCP) Liability coverage form - Provides
coverage for the liability of an owner of land on which a building is
being constructed for the acts of the contractor handling the construction.
Owners, Landlords, and Tenants legal liability (OL&T), see Premises
and operations liability.
Ownership
of expirations - Refers to the ability of an independent agent to
place a risk with any of the companies that he or she represents. Unless
that customer goes to another agent, the current agent "owns"
the policy and the right to place it as he/she sees fit.
