Work And Materials Clause

Definition of "Work and materials clause"

Pamela Shields real estate agent
Pamela Shields, Real Estate Agent Re/Max Desiny

Provision in most property insurance policies that permits a policyholder to use the insured premises to store materials and handle them in the manner needed to pursue his or her line of business. Without this clause, a policy may be voided for fraud, concealment, or misrepresentation of an undisclosed increased hazard. The clause provides a defense for a policyholder against a charge of increasing the hazard of a workplace if the materials in question are necessary to the business.


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