What is the primary purpose of the Omnibus Clause in insurance agreements?

The primary purpose of the Omnibus Clause in insurance agreements is to extend coverage to unnamed individuals. This clause is typically found in auto insurance policies, allowing individuals who are not named insureds but who use the insured vehicle with the permission of the named insured to have coverage under the policy. This ensures that any authorized drivers or users are protected in case of an accident, enhancing the inclusivity and functionality of the insurance policy for real-world scenarios.

By providing this extension of coverage, the Omnibus Clause addresses situations where individuals may be driving vehicles on behalf of the policyholder, thus offering broader protection and reducing the risk of gaps in coverage for otherwise unlisted drivers.