What Does Work and Materials Clause Mean?
A work and materials clause is a provision in a property insurance policy that enables the policyholder to store materials necessary for their line of work at the insured premises without losing coverage. Standard fire policies generally have an increased hazard clause that would void a policy for a known increased hazard, but a work and materials clause circumvents it.
Insuranceopedia Explains Work and Materials Clause
Property insurance policies usually do not cover losses from a fire when the policyholder stored materials that increased the fire risk at the insured premises. Therefore, a work and materials clause would cover such losses, provided the materials were necessary for the policyholder's work. This type of policy greatly benefits those whose line of work requires any materials that result in increased fire hazard.