OBLIGEE: Broadly, anyone in whose favor an obligation runs. This term is most frequently used in surety bonds, where it refers to the person, firm or corporation protected by the bond.
OBLIGOR: Commonly called principal, one bound by an obligation. Under a bond, strictly speaking, both the principal and the surety are obligors.
OCCUPANCY: In insurance, this term refers to the type and character of the use of property in question.
OCCURRENCE COVERAGE: A policy providing liability coverage only for injury or loss that occurs during the policy period, regardless of when the claim is actually made.
OPEN COVER: An agreement whereby the Assured undertakes to declare every item (e.g., shipment, vessel, etc., as appropriate) that comes within the scope of the cover in the order in which the risk attaches. The insurer agrees, at the time of concluding the contract, to accept all valid declarations up to the agreed limit for each declaration. An open cover may be for a fixed period or always open, subject to a cancellation clause.
OVERAGE: An additional premium charged on a cargo open cover declaration because the carrying vessel.