sue and labor clause

sue-and-labor clause. Marine insurance. A provision establishing that the marine insurer will cover the costs incurred by the insured in protecting the covered property from damage or minimizing actual damages to the property. • The clause generally requires the insurer to “sue and labor” to protect the insured party’s interests.

— Also termed rescue clause. [Cases: Insurance 2195, 2245(2). C.J.S. Insurance §§ 1118, 1215.]

“Some insurance today is written against ‘all risks’ …. Besides the perils clause … recovery under the policy can be had on the entirely separate ‘sue and labor’ clause …. Under this clause, the underwriter may become liable for certain charges incurred by the assured in caring for the insured property, whether or not there is any actual loss or damage. Where sue-and-labor charges are incurred and loss also occurs, the underwriter may become liable for more than the policy amount, which limits only a claim for loss of or damage to the goods or vessel.” Grant Gilmore & Charles L. Black Jr., The Law of Admiralty§ 2-10, at 75 (2d ed. 1975).


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