Work And Materials Clause
Categories: Company Management
What’s much less fun than Santa Claus? The work and materials clause. Which is a part of insurance policies...usually of the “property” sort. Yep.
A work and materials clause in a property insurance policy makes sure that the insured party is allowed to have normal work and materials for their business. That way, in the case that a property insurance claim is filed, the insurance company can’t say, "well, we’re not going to pay up because the reason this damage happened in the first place is because of the “increased hazard” (see contract) that you caused via your work and materials on-site."
The work and materials clause is just a no-nonsense part of a contract that ensures an insurance company can’t just void an insurance contract because an insured somehow increased the hazardous-ness of the situation.