Glossary

An ownership clause in life insurance is the provision or endorsement that designates the owner of the policy when such owner is someone other than an insured—for example, a beneficiary. This clause vests ownership rights (e.g., the right to designate the beneficiary) to the specified person or entity.

Owners and contractors protective liability coverage refers to a stand-alone policy that covers the named insured's liability for bodily injury (BI) and property damage (PD) caused, in whole or in part, by an independent contractor's work for the insured. The contractor purchases the policy to provide coverage for vicarious liability the client (project owner) incurs as a result of the contractor's acts or omissions on the project. The OCP policy also responds to liability arising out of the insured's own acts or omissions in connection with its general supervision of the contractor's operations.

The owners, landlords, and tenants liability policy is an obsolete liability insurance coverage form designed for businesses whose liability loss exposure (other than automobile and workers compensation) derives principally from the business premises. Manufacturers and contractors, whose principal liability loss exposure derives from the business operations, products, or completed operations, commonly purchased a manufacturers and contractors (M&C) liability policy. Now both types of businesses are customarily insured under a commercial general liability (CGL) policy.

Owners protective errors and omissions insurance coverage refers to a policy that provides coverage for a construction project owner's exposure to liability for negligent design work on the project. Such forms are written to apply as excess coverage over multiple underlying policies that insure the various design professionals working on a given project (or group of projects). Unlike a project liability policy in which the various design professionals are the named insureds, the project owner is the named insured under owners protective errors and omissions (E&O) forms.